Straight from the Specialists
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The concept of insurance plans being sold through banks is called ‘bancassurance’ and there is a lot of interest in this distribution channel from all the stakeholders - customers, banks, insurance companies and the regulator.
Bank as a distribution channel offers some very distinct advantage for the insurance companies, biggest being a large established network which can operate on a purely variable cost basis. The time and money required to establish something similar is exhaustive and expensive, almost bordering on the impossible.