Scope Of bancassurance

ABSTRACT Insurance is a cover used for protecting oneself from the risk of a financial loss. It is important to understand that risk is a part of any person's life. Insurance is risk coverage against financial losses and should not be taken as an investment instrument. Bancassurance is an alliance between the insurance companies and banks for the sale of insurance products through banks. According to IRDA, ‘bancassurance' refers to banks acting as corporate agents for insurers to distribute insurance products. Bancassurance is an attractive and profitable component that complements to the existing activities and services offered by banks. The main purpose of the paper is to study the scope of Bancassurance. The present study deals with the objectives (1) to study the level of awareness among the customers regarding bancassurance (2) know the preferred buying channel of customers specifically between banks and insurance company sales channel and (3) understand the reasons behind success or failure of bancassurance. To analysis the above mentioned objectives, data has been gathered through primary data. A sample frame of 200 individuals is selected from the target population. Keywords: insurance, bancassurance, investment instrument, risk, insurer