ADVANTAGES AND DISADVANTAGES OF BANCASSURANCE
NAME: KARAN BELLANI
SR NO. | TOPIC | PAGE NO | 1 | INTRODUCTION | 3 | 2 | HISTORY OF BANCASSURANCE | 4 | 3 | BANCASSURANCE MODELS | 5 | 4 | ADVANTAGES AND DISADVANTAGES OF BANCASSURANCE | 7 | 5 | DEUTSCHE BANK TIE UP WITH BIRLA SUN LIFE AND BAJAJ ALLIANZ INSURANCE CO. | 9 | 6 | CONCLUSION | 11 | 7 | ACKNOWLEDGEMENT | 12 | 8 | BIBLIOGRAPHY | 13 |
INTRODUCTION
The business of banking around the globe is changing due to integration of global financial markets, development of new technologies, universalization of banking operations and diversification in non-banking activities. Due to all these movements, the boundaries that have kept various financial services separate from each other have vanished. The coming together of different financial services has provided synergies in operations and development of new concepts. One of these is bancassurance. It simply means selling of insurance products by banks to its customers. In this arrangement, insurance companies and banks undergo a tie-up, thereby allowing banks to sell the insurance products. This is a system in which a bank has a corporate agency with one insurance company to sell its products. By selling insurance policies bank earns a revenue stream apart from their banking business. It is called as fee-based income. This income is purely risk free for the bank since the bank simply plays the role of an intermediary for sourcing business to the insurance company. Bancassurance has grown at different places and taken shapes and forms in different countries depending upon demography, economic and legislative prescriptions in that country. Bancassurance, the sale of life insurance and pensions products through a bank, has proved to be an effective distribution channel in a number of countries. In a broad sense, bancassurance is the distribution of insurance products to a banks client base. However, beyond this definition, bancassurance business models vary widely from country to country.
SR NO. | TOPIC | PAGE NO | 1 | INTRODUCTION | 3 | 2 | HISTORY OF BANCASSURANCE | 4 | 3 | BANCASSURANCE MODELS | 5 | 4 | ADVANTAGES AND DISADVANTAGES OF BANCASSURANCE | 7 | 5 | DEUTSCHE BANK TIE UP WITH BIRLA SUN LIFE AND BAJAJ ALLIANZ INSURANCE CO. | 9 | 6 | CONCLUSION | 11 | 7 | ACKNOWLEDGEMENT | 12 | 8 | BIBLIOGRAPHY | 13 |
INTRODUCTION
The business of banking around the globe is changing due to integration of global financial markets, development of new technologies, universalization of banking operations and diversification in non-banking activities. Due to all these movements, the boundaries that have kept various financial services separate from each other have vanished. The coming together of different financial services has provided synergies in operations and development of new concepts. One of these is bancassurance. It simply means selling of insurance products by banks to its customers. In this arrangement, insurance companies and banks undergo a tie-up, thereby allowing banks to sell the insurance products. This is a system in which a bank has a corporate agency with one insurance company to sell its products. By selling insurance policies bank earns a revenue stream apart from their banking business. It is called as fee-based income. This income is purely risk free for the bank since the bank simply plays the role of an intermediary for sourcing business to the insurance company. Bancassurance has grown at different places and taken shapes and forms in different countries depending upon demography, economic and legislative prescriptions in that country. Bancassurance, the sale of life insurance and pensions products through a bank, has proved to be an effective distribution channel in a number of countries. In a broad sense, bancassurance is the distribution of insurance products to a banks client base. However, beyond this definition, bancassurance business models vary widely from country to country.