Private insurers bullish on bancassurance modelLife Insurance sector is booming since last few years. Bancassurance model is working in favor for the private players.
Apnainsurance.com Research Bureau
30 Jun 2008
Life Insurance sector is booming since last few years. The increase in premiums for the fiscal year 207-08 was around 40per cent.
The private players are growing at a rate of more than 70per cent. The premium revenue contributes to 4.1per cent of the Gross Domestic Product (GDP).
The growth in insurance sector is mainly because of the individual agents. But, even the bancassurance model is working in favor for the private players. Almost 35per cent of the total premium collected came from bancassurance in the fiscal year 2007-08. In the fiscal year 2006-07 the premium collected was 17per cent from bancassurance.
In the fiscal year 2007-08, bancassurance generated 38 per cent as the new business income for HDFC Standard Life Insurance. The business module generated 27 per cent as new premium business income for Birla Sun Life and Kotak Life.