Bancassurance : A Feasible Strategy for Banks in India ?

The scope for bancassurance models as feasible source of sustainable income to banking sector is explored by exploiting the synergy in the context of India having the largest banking network on the one hand and lower insurance penetration and insurance density on the other hand. While analysing the present trend of banks handling insurance products, it also highlights some of the likely issues in general as well as specific from the point of regulator and supervisor. It concludes that going by the present pace, bancassurance would turn out to be a norm rather than an exception in future in India and it would be a ‘win-win situation’ for all the parties involved - the customer, the insurance companies and the banks.