SYNOPSIS

TITLE OF THE PROJECT

A Comparative Study of Bancassurance Products in Banks
INTRODUCTION
The Banking and Insurance industries have changed rapidly in the changing and challenging
economic environment throughout the world. In this competitive and liberalized environment
everyone is trying to do better than others and consequently survival of the fittest has come into
effect. This has given rise to a new form of business wherein two big financial institutions have come
together and have integrated all their strength and efforts and have created a new means of marketing
and promoting their products and services. On one hand it is the Banking sector which is very
competitive and on the other hand is Insurance sector which has a lot of potential for growth. When
these two join together, it gives birth to BANCASSURANCE.
OBJECTIVE
Primary Objective of my study on the topic Bancassurance is that this is relatively a new concept
in India and thereby I would like to enhance my understanding and improve my knowledge
regarding this topic & above all I would definitely want to apply this information so gathered in my
future career prospects. Whereas the main objective of making this thesis stands to is research on the
Bancassurance strategy adopted by the banking companies. Today the customer is the king of the
market and to satisfy his wants and needs the industry has to adopt many strategies. The customers
want everything under, one roof, by thinking of this point the banking industry came up with
BANCASSURANCE. Survey analysis of the customers is also done. 50 customers views are taken
into consideration on Bancassurance which are shown through pie diagram and bar diagram in this
project.
To study the profile of the respondents of selected Public and Private sector banks.
To study the image of bancassurance among the customers.
To study the level of customer satisfaction towards the bancassurance services.
To know the insurance sector is in the extensive need to use the banks distribution network,
large client base and huge customer database, which are helpful in selling their products.
To know the cost of distribution of insurance products in comparison to the traditional agency
channel.

PROBLEM STATEMENT
Few years back, the bank was considered only as an intermediary between the individuals to accept
deposits and to give loans. Today the scenario has changed; after the liberalization along with the
normal facilities banks started selling insurance products through the wide network it reaches every
person in all the nook and corner of our nation as one stop shop giving multiple services. It helps
the banks to attain extra revenue which in turn contributes to the GDP of the nation. The present
study focuses on the satisfaction level of customers who are the back bone of bancassurance business
in the banking industry based on certain variables such as customer benefits, convenience, acquisition
cost, value added services and customers trust.

LITERARURE REVIEW
John Cooper (2013: Success in Bancassurance, The Global Insurance Consumer survey conducted
among 24000 customers around the world depicts that customers are seeking value, convenience
and wanted to buy from banks they trust. S. Saravan Kumar et al (2012). The success of
bancassurance greatly hinges on banks ensuring excellent customers relationship; therefore banks
need to strive towards that direction.
Deepika Upadhyaya (2011): Concluded in her study that 'although the satisfaction levels are on the
higher side, yet there remains a lot to be done by the management of the retail life Insurance
companies to maximize their customers' satisfaction and improve the quality of service. The
satisfaction of the customer with the services of Life Insurance Companies is linked with the
performance of the service.
J. D. Power and Associates (2008): A customer satisfaction study conducted by J. D. Power and
Associates reveal that routine service interaction between customer and their insurer has a
considerable impact on overall satisfaction.
Blanchard and Galloway, (1994): The service management literature discuss that customer
satisfaction is the outcome of a customers perception of the value received in a transaction or
relationship (see: Blanchard and Galloway, 1994; Heskett et al., 1990) (Zeithaml et al., 1990)
Anderson and Narus, (1990): Has measured trust as a feature with a great influence on the degree of
satisfaction at the level of the relationship between producers and consumers through distribution
channels. The author noticed from the above mentioned studies that bancassurance provides a creamy
layer income to the bank with the existing customers. Like all other business entities, customers are
the back bone and they seek better relationship, convenience, and value added services and above all
they need to get things from the banks they trust.
METHODOLOGY TO BE USED
The methodology includes the information of the feature of the bancassurance in the form of primary
data that had been received from the branch managers of the banks and the officers of the LIC. It also
includes the informations from the related books & the related websites. The study carried with the
cooperation of the management who permitted to carry on the study and provided the requisite data
collected from the following sources.
Primary data
Secondary data
PRIMARY DATA
The information collected directly without any reference is primary data. In the study it is mainly
through conversation with concerned officers or staff members either individually or collectively.
Primary Research has been done to validate the information given in the project. This research has
been extensively done via visit to a bank (BANK OF India) and an Insurance company (HDFC
Standard Life Insurance). Interview from Rajesh Sheth, Marketing manager of Bank of India and two

SDM (Sales Department Managers) of HDFC Standard Life Insurance Mr. Rakesh L. Singh and
Shivaji Chandar Panchamukh have really proved helpful in completion of the project.
SECONDARY DATA
The secondary data about the project is collected through various sources i.e.
Books on the very topic.
Various Websites.
Newspaper Articles.
Magazines containing the information about the topic.
Sampling Design
Sampling is necessary because it is almost impossible to examine the entire parent population (i.e. the
entire universe) various factors such as time available cost, purpose of study etc. make it necessary
for the researchers to choose a sample. It should neither be too small nor too big. It should be
manageable. The sample size of past 3 years is taken for present study due to time limitation.
Frame work Analysis
To analyze the collected primary data Karl Pearsons correlation, Mean and ANOVA is used as the
statistical tool. The applications of this tool were identified as relevant to the objectives of the study
framed.
LIMITATIONS
1. As most of the data will be from the secondary sources, hence the accuracy may be limited.
2. The financial data cannot be estimated accurately for the future period.
3. Ratios of the past are not true indicators of future.
4. Comparisons not possible of different firms adopt different
5. Ratio analysis becomes less effective due to price level
6. Ratios may be misleading in the absence of absolute data.
7. Limited use of a single Ratio and Window-Dressing
8. Lack of proper standards.
9. Ratio alone are not adequate for proper conclusions
REFERENCES
BOOKS

John Cooper, Success in Bancassurance, Ernst& Young The Bancassurance Bulletin,

Issue 1, January- May 2013.pg4.
S. Saravan Kumar, U. Punitha, Gunasekaran & S. Sankar, Flourishing Bancassurance
business an Indian Perspective. International Journal of Multidisciplinary Research
Vol.2 Issue 2, February 2012, ISSN 2231 5780.
Upadhyay D., (2011 March 28-30), Service quality perception and customer satisfaction
in life insurance companies in India, International conference on technology and
business management, 1011-1024

Blanchard, R. and Galloway, R. (1994), Quality in retail banking, International

Journal of Service Industry Management, Vol. 5, pp. 5-23. (http://www.parl.gc.ca/)
Anderson, J. C. and J. A. Narus (1990), A Model of Distributor Firm and Manufacturing
Firm Working Relationships, Journal of Marketing, Vol 54, 42-58

NEWSPAPER
Economic times
Times of India
The Hindu
MAGAZINES
Business world
Business today
Websites References
www.google.com
www.rbi.org.in
www.askjeeves.com
www.wikiepedia.com
www.insuranceforum.com