Bancassurance expected to generate 40 % of private insurers premium income by 2012 , as compared to current 25 % – 28% .
In General insurance , presently 17% of insurance premium comes from bancassurance and in 2009 – 10 this industry collected gross premium of US$ 7.84 billion with growth rate of 13.42%.
Bancassurance accounts for 67% of its total premium income, which is the highest among life insurers.
In 2008-09, private insurers forked out US$ 44.64 million as commission for bancassurance.
(Towers Watson India , Bancasurrance Benchmarking survey 2009-10)
Bancassurance: WIN-WIN For Insurer, Banks & for Customers Value to Insurer Value to Customer Value to Bank Leveraging Joint Branding Product Creation Product Fitment & Differentiation Reduced Distribution Cost Additional offering at No extra cost Leveraging Branch Network (REACH) & Client Base (DEPTH) Holistic Financial offering to Client
Bancassurance Tie-Ups *Aviva started the concept of Bancassurance in India Banks Insurance Company Barclays Axis Bank MetLife India DBS Bank Tata AIG Karur Vysya Bank Lord Krishna Bank Bajaj Aliianz ABN-Amro Canara Bank Amex Aviva Life Insurance* Corporation Bank Indian Overseas Bank Centurian Bank Vijaya Bank LIC
“ There is no Stronger Force than an Idea whose time has come” - VICTOR HUGO (19 TH Century Novelist) Banks & Insurers across the world have realized Bancassurance is the distribution channel , which could help them achieve economies of scale and boost their revenues in the 21 st Century