Bancassurance refers to the selling of insurance products by banks. It originated in France and proved successful in Europe. In India, banks were allowed to undertake referral business with insurance companies starting in 2002. There are various models of bancassurance partnerships, including strategic alliances and full integration. Major Indian banks that have partnered with insurance companies include SBI Life Insurance with SBI Bank, HDFC Standard Life with Union Bank, and Bajaj Allianz with Standard Chartered Bank. Bancassurance provides opportunities to tap new customers and generate additional revenue streams for both banks and insurance companies.

1. BANCASSURANCEBANCASSURANCE
ININ
INDIAN PERSPECTIVEINDIAN PERSPECTIVE

2. INSURANCEINSURANCE
 Insurance is system by which the lossesInsurance is system by which the losses
suffered by a few are spread over many,suffered by a few are spread over many,
exposed to similar risks.exposed to similar risks.
 Insurance is a contract between two parties,Insurance is a contract between two parties,
the insurer or the insurance company, and thethe insurer or the insurance company, and the
insured, the person seeking the cover.insured, the person seeking the cover.

3. TYPES OF INSURANCETYPES OF INSURANCE

4. HISTORYHISTORY
 1818-Oriental Life Insurance Establised in1818-Oriental Life Insurance Establised in
INDIAINDIA
 1912-Act are Established1912-Act are Established
 1928-Gov. collect the information abt. both1928-Gov. collect the information abt. both
type of insurancetype of insurance
 1938-Earlier Legislation for protecting the1938-Earlier Legislation for protecting the
objectiveobjective
 2002- IRDA are Established2002- IRDA are Established

5. IRDAIRDA
 Insurance Regulatory & DevelopmentInsurance Regulatory & Development
Authority is regulatory and developmentAuthority is regulatory and development
authority under Government of India in orderauthority under Government of India in order
to protect the interests of the policyholders andto protect the interests of the policyholders and
to regulate, promote and ensure orderly growthto regulate, promote and ensure orderly growth
of the insurance industry.of the insurance industry.

6. BANCASSURANCEBANCASSURANCE
 DefinitionDefinition :It simply means selling of:It simply means selling of
insurance products by banksinsurance products by banks
 Banks have corporate agency with anBanks have corporate agency with an
insurance company to sell its products.insurance company to sell its products.
 By selling insurance policies banks earnBy selling insurance policies banks earn
revenues apart from interest.revenues apart from interest.

7. OriginOrigin
 It originated in France and proved mostIt originated in France and proved most
successful in Europesuccessful in Europe
 In India from October 29,2002 banks wereIn India from October 29,2002 banks were
allowed to undertake referral business withallowed to undertake referral business with
prior approval from IRDA & RBIprior approval from IRDA & RBI
 Aviva life insurance was the first company toAviva life insurance was the first company to
introduce this concept in Indiaintroduce this concept in India

8. BANCASSURANCE MODELSBANCASSURANCE MODELS
MODELS
STRATEGIC
ALLIANCE
FULL
INTEGRATION
MIXED MODEL

9. CHANNELS OF DISTRIBUTIONCHANNELS OF DISTRIBUTION
CORPORATE
AGENTS
DIRECT SALES
BANKS
AGENTS
CHANNELS
OF
DISTRIBUTION

10. INSURANCE COMPANIESINSURANCE COMPANIES
 Life Insurers : 22 companies are working inLife Insurers : 22 companies are working in
both private and public sectorsboth private and public sectors
 General Insurers : 21 companies are workingGeneral Insurers : 21 companies are working
in both private and public sectorsin both private and public sectors

11. MAJOR TIE UPSMAJOR TIE UPS
INSURANCE COMPANY BANK
AVIVA LIFE INSURANCE ABN AMRO BANK,AMERICAN
EXPRESS,CANARA BANK,LAKSHMI
VILLAS BANK,BANK OF RAJASTHAN
BAJAJ ALLIANZ STANDARD CHARTERED BANK,SYNDICATE
BANK
HDFC STANDARD LIFE UNION BANK
SBI LIFE INSURANCE SBI BANK
OM KOTAK MAHINDRA LIFE DENA BANK
ICICI PRUDENTIAL & LOMBARD ABN AMRO BANK,ICICI BANK,CENTURION
BANK
UNITED INDIA INSURANCE BANK OF RAJASTHAN
BIRLA SUNLIFE INSURANCE J&K BANK,FEDERAL BANK, BANK OF
RAJASTHAN
LIC OF INDIA DENA BANK,
CENTURION BANK,CORPORATION
BANK,INDIAN OVERSEAS BANK,UCO
BANK,BANK OF PUNJAB,CENTRAL
BANK,SOUTH INDIAN BANK

12. SWOT AnalysisSWOT Analysis
STRENGHTSSTRENGHTS
 Vast untapped marketVast untapped market
 Huge pool of skilledHuge pool of skilled
professionalsprofessionals
WEAKNESSWEAKNESS
 Lack of networkingLack of networking
among bank branchesamong bank branches
 Low savings rateLow savings rate

13. SWOT AnalysisSWOT Analysis
OpportunitiesOpportunities
 Data MiningData Mining
 Wide distributionWide distribution
networknetwork
 Corporate customers asCorporate customers as
major potential areamajor potential area
ThreatsThreats
 HR challengeHR challenge
 Non response fromNon response from
target grouptarget group

14. CONCLUSIONCONCLUSION
 BANKS WITH THEIR HUGE DATABASEBANKS WITH THEIR HUGE DATABASE
OF CUSTOMERS AND A FINE NETWORKOF CUSTOMERS AND A FINE NETWORK
OF BRANCHES CAN IN THE UPCOMINGOF BRANCHES CAN IN THE UPCOMING
YEARS GENERATE HUGE REVENUESYEARS GENERATE HUGE REVENUES
WITH THE MARKETING EXPERTISE OFWITH THE MARKETING EXPERTISE OF
THE INSURANCE COMPANIES.THE INSURANCE COMPANIES.