Synergies of Bancassurance:A Critical Review

We are witnessing a wide range of structural changes in the distribution of insurance in the world's most important markets-US, Europe, UK and Asia. These changes are primarily driven by three factors. First, the changing profile of customers, who are becoming more financially independent and better control over thereby is demanding more valuable services. Second, opening up of new markets provides opportunities for geographical expansion to insurers, though in accordance with the local preferences. Third the cost factor of the insurers; considering that the distribution cost is highest among all the operating costs, insurers are on a continuous lookout for providing improved services at low costs. It is here that concept such as selling insurance through banks - comes into picture.