Bancassurance business trumping business by agentsThe bancassurance segment is growing at a good pace and it is easily beating traditional sale of insurance by agents.
Apnainsurance.com Research Bureau
05 Aug 2008
The bancassurance segment is growing at a good pace and it is easily beating traditional sale of insurance by agents.
As reported by Business Line, Mr Surya Roy, Director and Head of Bancassurance at Life insurance Corporation of India (LIC) said, "We are quite happy with the way in which bancassurance is growing. The sales through this channel registered an increase of about 60 per cent in 2007-08."
At SBI Life, bancassurance business has increased over 100 per cent. It has done a total business of Rs 56,000 crore. As reported by Business Line, Mr Uday Shankar Roy, CEO and Managing Director, SBI Life insurance, said, "This year too, we are expecting a similar growth in this segment." He further added, "In the next two/three years, the share of bancassurance is bound to grow as there is realization among the banks and insurers that there is untapped insurance potential in the customers of a bank. The keenness of many a bank to augment other income (fee-based income) in view of growing pressure of margins will also drive this."