Bancassurance strategy in India: A win-win situation for all the participants
Bancassurance is the process of using customer relationship by a bank to sell life and non-life insurance products and it is emerging as a natural pathway for the effective development of insurance sector. This new channel of distribution can be described as a strategy adopted by banks/insurance companies aiming to operate the financial services market in a more or less integrated manner. Bank acts as a mediator between the insurance company and their customers. Bancassurance has grown differently in different countries and taken shape according to the demography, economy and legislative prescriptions in that country. If effectively used, the strategy can be a win-win situation in India for all the participants.