Challenges in functional synergy in bank assurance

The Banking and Insurance industries have changed rapidly in the changing and challenging economic environment throughout the world. In this competitive and liberalized environment everyone is trying to do better than others and consequently survival of the fittest has come into effect. This has given rise to a new form of business wherein two big financial institutions have come together and have integrated all their strength and efforts and have created a new means of marketing and promoting their products and services. On one hand it is the Banking sector which is very competitive and on the other hand is Insurance sector which has a lot of potential for growth. When these two join together, it gives birth to BANCASSURANCE. Bancassurance is nothing but the collaboration between a bank and an insurance company wherein the bank promises to sell insurance products to its customers in exchange of fees. It is a mutual relationship between the banks and insurers. A relationship which amazingly complements each other's strengths and weaknesses. It is a new buzz word in India but it is taking roots slowly and gradually. It has been accepted by banks, insurance companies as well as the customers. It is basically an international concept which is spreading all around the world and is favored by all. Taking all these things into consideration author would like to present my project³; BANCASSURANCE (an emerging concept in India). The project flashes some light on Bancassurance and how it is perceived by people in India. It deals with the conceptual part of Bancassurance as well as its practical applications in India. The main focus of this project is on benefits and importance of Bancassurance in India.