Digitalization in the Bancassurance Model of Distribution - Opportunities and Challenges

Abstract

The Indian “Life Insurance Sector” is one of the fastest growing sectors among other industries. The main idea is to compensate the financial losses of a family when the main bread earner is no more due to certain eventualities in life. Bancassurance is the most common models of distribution of “Life Insurance Products and Solutions” apart from Agent Selling Model and Direct Distribution.

The industry is adapting itself to the latest wave of Digitalization and Artificial Intelligence. The change in the Indian economy, like Digital India, is giving a boost to economic and financial products like Life Insurance. The stand-alone digital startups, launched specially for insurance products which received seed funding from the investors and are acclaimed internationally, are famously known as Insurtech.

The focus of this study is on the adopting strategies on enhanced customer values in terms of product differentiation, quality, speed, service and costs. It further attempts to explore the recent trends in the various distribution channels in the insurance sector with special reference to bancassurance.