ADVANTAGES AND DISADVANTAGES OF BANCASSURANCE Essay

2412 Words Sep 1st, 2012 10 Pages
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
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This model is best suited for majority of banks including some major urban cooperative banks because neither there is sharing of risk nor does it require huge investment in the form of infrastructure and yet could be a good source of income. C) FULLY INTEGRATED FINANCIAL SERVICE: Apart from the above two, the fully integrated financial service involves much more comprehensive and intricate relationship between insurer and bank, where the bank functions as fully universal in its operation and selling of insurance products is just one more function within. Banks are equipped with a counter within to sell the insurance products as an internal part of its activities. This includes banks having a wholly owned insurance subsidiary with or without foreign participation. In Indian case, ICICI bank and HDFC banks in private sector and State Bank of India in the public sector, have already taken a lead in resorting to this type of bancassurance model and have acquired sizeable share in the insurance market, also made a big stride within a short span of time. The great advantage of this strategy being that the bank could make use of its full potential to reap the benefit of synergy and therefore the economies of scope. 5.2. PRODUCT-BASED CLASSIFICATION A. STAND-ALONE PLANS: In this case bancassurance involves marketing of the insurance products through either referral arrangement or corporate agency without mixing the insurance products with any of the

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