Bancassurance: A new chapter in banking industry

Bancassurance in its simplest form is the distribution of insurance products through a bank distribution channel. In concrete term, bancassurance which is also known as ‘Allfinanz’- distributes a package of financial services that can fulfill both banking and insurance needs at the same time. It takes various forms in various countries depend upon the demography, economic and legislative climate of that country. Profile of a country decides the kinds of products bancassurance shall be dealing with. Economic situation will determines the trends in terms of turnover, market share etc. Whereas legislative climate will decide the periphery within which the bancassurance has to operate. The motive behind bancasurance varies: For banks- product diversification, source of additional fee income. For Insurance company- A tool of increasing there market penetration, premium turnover, For Customers- Reduced Price, High Quality Product, Delivery at doorsteps. Actually everybody is a winner.