BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Assurance from the bank to its account holder regarding the safety of his money
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A special product designed by the bank
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Selling of insurance policies by banks
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The understanding between banks and insurance companies
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Detailed explanation-1: -Definition: Bancassurance means selling insurance product through banks. Banks and insurance company come up in a partnership wherein the bank sells the tied insurance company’s insurance products to its clients.
Detailed explanation-2: -Customers trust their banks to sell them the right product. The trust they would place on insurance carriers and independent agents is comparatively lesser. Therefore, the propensity to buy insurance products from their banks is higher.
Detailed explanation-3: -In the global market, the major bancassurance examples include European banks such as Crédit Agricole (France), ABN AMRO (Netherlands), BNP Paribas (France), and ING (Netherlands).
Detailed explanation-4: -Introduction. Bancassurance is the concept of selling insurance products of insurance companies by banks. Bank acts as an agent and promotes Banca (bancassurance) products under section 6(1)(o) of the Banking Regulation Act, 1949.
Detailed explanation-5: -Bancassurance refers to an agreement between a bank and an insurance company. In bancassurance, the insurance company can use the bank’s distribution channels to sell products. Banks, in return, receive a certain fee from the insurance company.