Benefits Offered Under Bancassurance in India
Thus, we can say that Bancassurance is profitable to both consumers and providers like ICICI Lombard, HDFC Ergo, SBI Life, etc.
29 January, 2013
Selling of insurance products by banks is known as Bancassurance. Nowadays banks in India apart from selling their regular products of deposits, advances, investments etc., also sell both life and general insurance products. This offers convenience to both the consumer and the service provider.
Both public and private banks like ICICI, HDFC, SBI are trying to use their established trustworthiness by stepping into marketing insurance. Numerous benefits offered through Bancassurance are:
* Banks such as ICICI enjoy many more advantages as compared to insurance companies like icici Lombard. They act as an ideal source to carry messages related to insurance to the masses and in turn improve their business and market standing. Nowadays by selling a whole range of both life and general insurance products in the market, banks in India are spreading awareness about insurance products and services as well as earning huge profits.
* Banks offer a much more personalized relationship with their customers and offer a better understanding in relation to their financial needs. Hence common man or interested investors consider Banker's advice to be more trustworthy.
* Bank staff is already familiar and comfortable with the financial terms used in the policy documents and can easily learn the subject of insurance. This is a plus point and works well during selling of insurance products.
* Banking and Insurance products when combined together offer a better blend of products to the consumer. A person can enjoy the benefits of both the products and services from a common platform.
* Bancassurance helps companies like icici Lombard reduce dependency on agents to sell their products. This helps them save a lot of amount spent otherwise as commission to motivate and convince the insurance agents to promote their products.
* It is mutually beneficial for both banks and insurance companies, as both these financial sectors of society can control products and services offered by them.
* The provision to sell non banking products and services is a useful and promising alternative source of income for banks.
* Insurance providers take advantage of huge banking relations and use it to promote their products amongst masses and sophisticated classes.
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