Page 11 - Life Insurance Today July - December 2020

ADVANTAGES OF

BANCASSURANCE

IN INDIA

F ew decades back insurance policies were meant insurance companies and banks join forces to sell insurance

for a small part of public who were financially
products to consumers of the bank.
strong, or few fortunate employees in the
organised sector. Today the scenario has
insurance company allowing the insurance company to sell
completely changed wherein insurance policies reach every Bancassurance is an arrangement between a bank and an
person in almost every nook and corner of our nation. This its products to the bank's client base.
change in the financial space was ushered in with the birth
of bancassurance in India. Banks which were meant for The Need for Bancassurance Model
deposits, loans and transactions are allowed to provide The bancassurance distribution model for insurance grew
insurance policies to people and this feature of bank is called to capitalize on this opportunity - to increase the distribution
'BANCASSURANCE'. reach with the least possible resources (in terms of
infrastructure, manpower and time). Banks with their vast
What is Bancassurance? reach in the financial services market were the perfect

Bancassurance is the insurance distribution model where vehicle to aid the insurance companies in this endeavour
and thus rose the bancassurance channel.
About the author Regulations under RBI and IRDAI:-

Paramesh Kumar S The Reserve Bank of India and the insurance development
Asst. Professor - Life Insurance and regulatory authority have a set of guidelines for
MABFSI I Manipal Global Education companies that couple to form bancassurance. Based on the
Services Pvt Ltd, Karnataka, equity a bank should hold in joint venture, the highest

"Love never needs working on, it's relationships that do."

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