Bancassurance: Experiences From Other Countries And Relevance For India

Rakesh Raushan, LL.M, Gujrat National Law University

ABSTRACT

A collaboration between a bank and an insurance business (both life and nonlife) is known as bancassurance. The bank gives the insurance firm a platform to market its goods and services in this arrangement. For a fee- based, risk-free income, banks provide insurance companies with access to a sizable database of their clientele in the context of bancassurance. The goal of this study is to show how bancassurance models and tactics could be used to generate non-interest income. India has the most extensive banking system yet has the lowest penetration and density of insurance. It highlights some of the potential difficulties in general, specific bank issues, and the existing tendency in banks managing insurance goods, which has hurt bancassurance. As a result, the three major subjects of this research report have been split. First, a Definition of Bancassurance: The authors will cover the definition of bancassurance and the development of the Indian insurance market. The second step is a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of the Indian banking system, including a thorough study of its application. To make bancassurance a win-win situation for the consumer, the insurance firms, and the banks, the paper suggests tactics and policies in its conclusion.

Keywords: Bancassurance, Insurance Company, IRDA, SWOT