Indian Insurance Industry <ul><li>Indian Life Insurance Industry - US$ 41-billion </li></ul><ul><li>5 th largest life insurance market. </li></ul><ul><li>Growing at a rapid pace of 32-34% annually. </li></ul>Source: Life Insurance Council
What is Corporate Agency? <ul><li>In 2000, IRDA introduced the concept of Corporate Agency </li></ul><ul><ul><li>Corporate bodies like banks, firms; Cooperative Societies can act as agent of Insurance companies to market their insurance products. </li></ul></ul><ul><li>This channel of marketing is also known as ‘ BANCASSURANCE ’ </li></ul><ul><ul><li>majority of the corporate agents are Banks. </li></ul></ul><ul><ul><li>Bancassurance is ‘distribution of insurance products through a bank's network’. </li></ul></ul>
Why Insurance Companies should look at Banks for Distribution of Insurance Products ?
Facts & Figures <ul><li>Bancassurance expected to generate 40 % of private insurers premium income by 2012 , as compared to current 25 % – 28% . </li></ul><ul><li>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%. </li></ul><ul><li>Bancassurance accounts for 67% of its total premium income, which is the highest among life insurers. </li></ul><ul><li>In 2008-09, private insurers forked out US$ 44.64 million as commission for bancassurance. </li></ul><ul><li>(Towers Watson India , Bancasurrance Benchmarking survey 2009-10) </li></ul>
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