As we have notices, many banks are now entering into Insurance business. Why are Banks entering into this sector, particularly when many insurance companies are already there in India?begin{enumerate}item By providing insurance products, banks are earning additional revenue in terms of fee/commission.item Banks with their huge customer base are leveraging on their existing relationship to convert customers into policyholders.item With increase of health-related problems, everybody wants an insurance cover, no matter how big or small it is. Banks are coming up with many attractive offers, which are also affordable.end{enumerate}

BANKING GENERAL KNOWLEDGE

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

As we have notices, many banks are now entering into Insurance business. Why are Banks entering into this sector, particularly when many insurance companies are already there in India?

A	Only 1
B	Only 2
C	Only 3
D	Only 1 & (2)

Explanation:

Detailed explanation-1: -A bank can use only two insurance companies for the purpose in order to provide all financial services under one roof and, in effect, it acts as a broker for the insurance company. Banks have been able to source fee income and help integrate their product development and channel management.

Detailed explanation-2: -Bancassurance Industry Growth The bancassurance market is growing worldwide, particularly for life insurance and especially in the Asia-Pacific region. The research and consulting firm IMARC Group says the global bancassurance market reached a value of $1.268 trillion in 2021.

Detailed explanation-3: -The financial services sector provides financial services to people and corporations. This segment of the economy is made up of a variety of financial firms including banks, investment houses, lenders, finance companies, real estate brokers, and insurance companies.

Detailed explanation-4: -1. Any scheduled commercial bank would be permitted to undertake insurance business as agent of insurance companies on fee basis, without any risk participation. The subsidiaries of banks will also be allowed to undertake distribution of insurance product on agency basis.

There is 1 question to complete.