Futuristic Analysis of Banc Assurance Market Scenario in India

Banc assurance is a concept of "Rightpartnership" between a bank and a insurance company to work hand in hand and to be mutually benefitted by each other's expertise in the existing market. It is a model, in which the partner companies try to take leverage of others expertise and competencies to offer the non banking products and act as one stop shop. In India, after privatization lots of private player have entered the insurance market and hence the competing insurance companies find out new ways of increasing the business and spreading to the untapped markets of our country. In this paper the author has made an attempt to explain the challenges faced by the Bank and the Insurance company in achieving the mutually agreed upon goals and the reasons of dissolution of such partnerships and the need and scope of improved models of Banc assurance namely the open architecture strategy.