Page 12 - Life Insurance Today July - December 2020

allowable value of equity, the type of banks and insurance topped the list of reasons the customers chose to
companies that can couple together and the operation of purchase insurance at their banks.
bancassurance are all the factors that are regulated by RBI
and IRDAI. 3. Trust
Customers trust their banks to sell them the right
Recent guidelines by IRDAI to promote open architecture product. The trust they would place on insurance
in bancassurance, has helped the banks to have multiple tie- companies and independent agents is comparatively
ups. With this the customer will have a wider range of lesser. Therefore, the propensity to buy insurance
insurance products offered by different insurers. It will also products from their banks is higher.
lead to a deeper penetration in the selling of insurance
products. 4. One-stop-shop for All Financial Needs
Bancassurance distribution model allows the customers
I) Advantages of Bancassurance for to get an amalgamation of other financial services

Customers under one roof. Insurance used to be the missing piece
of the puzzle which Bancassurance now completes.
Let's look at the major advantages of bancassurance for
customers.
5. Expert Advise
Banks sit on mounds of customer data. This, along with
Following are the advantages of bancassurance
insurance companies' expertise in packaging insurance
for customers, explained: products helps the alliance suggest the right products.
1. A Complete Solution, Not Just a One-off Customers also recognize this expertise, majorly
Policy because of their trust in their banks.
Customers expect the same kind of responsiveness from
their banks and financial service providers as well. The 6. Ease of Renewals
advantage of bancassurance is just that: Bank being the front dealing with customers, handle
a) Right Product: It provides the end users a renewals as well, making the transaction even more
customized insurance solution. hassle-free.

b) Right Time: At a location, they already are for their In one the survey conducted revealed, 52% of insurance
financial needs - their banks. customers from banks stated their willingness to renew
their policies. This was against a dismal 19% of insurance
This improves the overall experience of the customers.
They are more likely to opt for a complete financial customers from non-bank channels, willing to renew.
solution from their banks, thus making bancassurance Also, with Digitalization, in the bancassurance channel,
a success. tracking the renewals is very easy.

2. Convenience 7. Easy Access to Claims
One research conducted revealed that, Convenience Again, taking its root in trust is the belief of an easy
claims process. This makes insurance through
Bancassurance channel a big draw for the customers.

8. Improved Application and Policy Processing
Time
Bank already has the data and documentation of
customers. This real-time information accessibility
makes sure that the turnaround time is reduced - in
application processing and claims management. This is
one of the major advantages of bancassurance for
customers.

Hopefully, now these advantages of bancassurance for

12 July - December 2020 Life Insurance Today