The document discusses the concept of bancassurance, highlighting its growth in Asia and the merging of banking and insurance sectors to create new revenue streams for banks. It details the role of technology in enhancing customer service and the entry of banks into the insurance market, either alone or via joint ventures. The document also addresses the impact of technological advancements on bank workforce dynamics and the importance of adapting to competitive pressures and customer expectations.

1. Bancassurance New Marketing Product for the Banks Dr. B.Krishnamurthy Selection Grade Lecturer & Head, Deptt. Of Commerce, R.T.E.S.College, Ranebennur.

2. Introduction Bancassurance is the convergence of Banking and Insurance The term has its origin in France Bancassurance gaining popularity in Asia, where restrictions have been eased The proverbial goose laying golden eggs for public sector banks

3. Scope Banks tapping new sources of income Finding ways to differentiate themselves from other banks and non-banks The technology forces the banks to develop a strategy for online delivery system to broaden the customer relationship and to retain customers’ loyalty. Greater competition for the banks as the technology pushes the delivery of services out of bank and Focus shifts from cost reduction to maintain market position.

4. Customers Aspirations Demanding fast, accurate and reliable services Adoption of technology is inevitable to respond Need at all time and at competitive prices Anywhere banking facilities offer access to banking services at a place and time convenience.

5. Insurance sector Setting up their own insurance companies Entered into memoranda of understanding with banks to use their branches as outlets for marketing standard products. State Bank of India, Vysya Bank and J&K Bank already has joint ventures in life insurance. Vijaya Bank and Punjab National Bank are in the midst of finalizing life and non-life ventures

6. Electronics and Information Technology Banking products and services are provided to consumers with complete ease and maximum efficiency. Bank need not be limited by its physical establishments Can have on-line presence to reach out the more customers Compete not only with local banks but also with foreign banks

7. Projection Insurance business to be worth around $60 billion by 2010 projected by Associated Chamber of Commerce and Industry.

8. Bank’s Entry Banks entering the insurance sector on their own without partnering with insurance companies due to several reasons Get better dividends than the commission Diversify from the regular banking activity that they are involved

9. IRDA To protect the interests of the policyholders to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto Insurance Regulatory and Development Authority came into effect from 1-04-2000 Today we have 22 insurers

10. List of Registered Life Insurers with the IRDA Today we have 22 Life Insurers in India 23.10.2000 HDFC Standard Life Insurance Company Ltd. 15.11.2000 Max New York Life Insurance Co. Ltd. 24.11.2000 ICICI Prudential Life Insurance Company Ltd. 08.05.2008 Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd. 27.06.2008 Aegon Religare Life Insurance Company Ltd. 27.06.2008 DLF Pramerica Life Insurance Company Ltd. Star Union Dai-ichi Life Insurance Co. Ltd.,

11. SBI Life Insurance Company Limited Joint venture between the State Bank of India and BNP Paribas Assurance registered with IRDA on 30.03.2001 State Bank of India --- 74% BNP Paribas Assurance --- 26%.

12. State Bank of India Largest banking franchise in India along with its 7 Associate Banks, with a strength of over 14,500 branches across the country, arguably the largest in the world. BNP Paribas Assurance is the life and property & casualty insurance unit Oldest foreign banks with a presence in India dating back to 1860.

13. Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited: Share Holdings 1. Canara Bank - 51% 2. HSBC Insurance (Asia Pacific ) Holdings Ltd - 26% 3. Oriental Bank of Commerce - 23% Paid up capital of INR 325 Crores. Commenced its business on 6th of June, 2008

14. ING Vysya Life Insurance Company Limited (ING Life Started operations in India in September 2001 ING Life has a pan India presence in 234 cities, with over 367 sales teams

15. Coporate Agents Corporate Agents are those companies who have the principal business other than insurance . Banks undertaking insurance activity to increase their income & attract the new customers with the existing human resource and the use of communication and information technology The share of corporate agents which was 8.42 per cent in 2006-07 has increased to 12.33 per cent in 2007-08.

16. Micro-insurance Micro-insurance, the term used to refer to insurance to the low-income people. It is mandatory for all formal insurance companies to extend their activities to rural and well-identified social sector in the country (IRDA 2000). Tata AIG Life - First insurance company to launch Micro-Insurance Scheme.

17. Tata AIG Life Insurance Company Limited Tata AIG Life is a joint venture company formed by the Tata Group and American International Group, Inc. (AIG). The Tata Group holds 74 per cent stake and AIG holding 26 per cent. Providing Insurance solutions to both Individuals and corporates Operation from April 1, 2001.

18. Impact on Human Resources Information technology has resulted in improved efficiency,Iinnovative products and Effective delivery systems for the banks. However, the employees have the fear of job insecurity due to induction of computer skilled employees and Reduction in jobs

19. Conclusion: Require the good aptitude of the existing workers. Continuously evolve newer techniques for making business transactions better, faster and more efficient

20. Challenges Competition, customer expectation, reduction of costs and enhancement of efficiency Need training and retraining of staffs and retention of highly specialized to become the vital factors for banks.

21. Thank You