BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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an insurance scheme to insure bank deposits
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an insurance scheme exclusively for the employees of banks
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a composite financial service offering both bank and insurance products
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a bank deposit scheme exclusively for employees of insurance companies
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Detailed explanation-1: -Bancassurance is an arrangement between a bank and an insurance company allowing the insurance company to sell its products to the bank’s client base. This partnership arrangement can be profitable for both companies.
Detailed explanation-2: -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-3: -With Bancassurance, insurance is added to the banks’ product mix, diversifying their customer portfolio and increasing their penetration in the market. In Bancassurance models, banks can easily generate risk-free income in the form of the commissions from insurance carriers.
Detailed explanation-4: -No, there is no difference between Insurance and Bancassurance. Bancassurance simply means that you can now access insurance through dfcu Bank. Simply put, it is insurance bought through your Bank.