Bancassurance will generate 40% premiums for private insurers

Bancassurance appears to be the best channel of distribution in India. More than 25% of the premiums generated by private companies originate from bancassurance. Projections show that this activity will account for 40% of the income by 2012.The Bancassurance Benchmarking Survey 2009-2010, conducted by Towers Watson India shows that 79% of insurers have made agreements with cooperative banks, 71% with private banks, 50% with non-banking financial institutions, 43% with state-run banks and 29% with regional or foreign banks.Although 93% of life insurers use this means of distribution, the training of banks'staff members remains an issue for the development of bancassurance.