EFFECTIVENESS OF THE BANCAASSURANCE PRODUCTS
OF THE INDIAN BANKING COMPANIES. A SYUDY WITH
SPECIAL REFERENCE TO KERALA
Both the term banking and insurance are the financial service industries which are beneficial to the customers forever. Untill recently banking and insurance had been two strictly segregated areas of activity. Now this position has changed. The era of privatization, liberalization, Deregulation and globalization has let loose a sense of urgency in most of the sectors and insurance is no exception. This sector too has been exposed to new challenges of competition and struggle for survival. The opening up of insurance market for private players by IRDA from ...view middle of the document...
Bancassurance has enormous scope in Kerala where people are either
not insured or they are under insured. In the present scenario banks are well spread out in Kerala
even in remote rural areas and people often visit the branches to do transactions. Even in urban
areas notwithstanding the proliferation of ATMs and e-banking etc., a sizeable number of
customers do call on the banks personally for their transactions. Personal interface with the bank
staff members who sell insurance is a critical factor in bancassurance and that it possible in our
banks. The convergence of insurance services and banking services has got good prospects to the
banks, insurance companies, and mainly to the ultimate customers of banking companies.
According to the indicators of banking progress Kerala ranks second among in Indian states for
prosperous banking. So a detailed study to find out the effectiveness of the bancassurance product
is very significant as far as kerala is concerned.
STATEMENT OF THE PROBLEM
The traditional insurance companies in India both in private and public sector have launched a
number of innovative products and services for the benefit of prospective customers. As a result
of bancassurance the leading banking companies in India with the collaboration of major
insurance companies offer a wide range of insurance products to their customers through the
bank branches. The banking companies argued a number of objective evidence in favour of