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Bancassurance, new means of insurance sales

Banks and insurance firms may unite to sell life and non-life insurance products through banks. This is 'bancassurance'.

Apnainsurance.com Research Bureau

19 Dec 2007

Bancassurance simply means a tie-up of a banks and an insurance firm to sell products via the banks. A Watson Wyatt study conducted on India's Bancassurance sector showed that this sector would generate around 35 per cent of the premiums from the private insurers' by the year 2008.

The study revolves around the strategy adopted by banks and insurance firms to sell their life and non-life insurance products and the problems and challenges faced by them in the process of sale. 25 banks, including nationalized, private and foreign banks were a part of the survey. With the bancassurance, life insurers estimate a 75 per cent increase in the new business premiums in the current year.

The bankers and insurers are bullish on their bancassurance model and expect 50 per cent of their business by 2010 in the life and non life segment.