Chapter – II

Review of Literature

2.1 Introduction

This chapter is devoted to presentation of review of related literature. The

researcher has taken brief review of past studies, researches, books and articles related
with the subject matter under study. This review helped the researcher for this research
work. The researcher has presented the review of literature in following sections:

1. Literature on Banking
2. Literature on Insurance
3. Literature on Bancassurance

2.2 Literature on Banking

In this section, the researcher has presented the review of literature related with
banking.

Sharma Manoranjan1 (2005), in his book entitled, “Studies in Money, Finance

and Banking”, has presented the capital structure of banks. The author stated that, “Cross-
country evidence clearly suggests that economic growth is positively related to the stage
of financial development, usually defined in terms of the size of financial markets or
outstanding bank assets relative to gross domestic product (GDP), both by facilitating
better risk-sharing and mitigating informational problems. In the pre-reforms phase, the
Indian financial system suffered from 'financial repression'. This was characterised by
regulation of interest rates, statutory pre-emption of resources by government, cross-
subsidisation of interest rates, high and mounting level of non-performing assets (NPAs),
and so on. Post-1991, the liberalisation process attempted to transform the credit
institutions into organisationally strong, financially viable and operationally efficient
units by a process of well-sequenced and interconnected reforms in several segments.”
The author further says that, “Banking sector reforms constituted an integral part of

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financial sector reforms in India. These reforms led to a heightened consciousness of
ownership and capital structure, enhanced competition, increased autonomy,
technological upgradation and performance change reflected in broad indicators of net
worth, Net NPA/Net Advances Ratio, Return on Assets (RoA) and Capital to Risk-
weighted Asset Ratio (CRAR). Banking success, particularly in recent years, has been
rooted in buoyancy in treasury incomes and retail expansion. Multiple dimensions of the
reform model led to an increase in both operating and net profits, greater compliance to
minimum capital adequacy norm and sharp reduction in the proportion of gross NPAS. But
the impact of reforms on the banking industry has been uneven.”

Kolhe Shridhar M.2 (2011), in his research work entitled “Financial Analysis of
Urban Co-Operative Banks in Marathwada Region – With Special Reference to Parbhani
District” has set the objectives for the study as follows –

1. To analyse the performance regards to management of funds both in terms of

internal as well as external resources & their appraisals.
2. To assess the possible impact of various sources and uses of funds of profitability,
productivity and solvency of banks.
3. To ascertain the optimum financial management requirement.

The researcher concluded that – though selected Urban Co-Operative banks have made
considerable progress in financing of members and priority sectors, a lot more still
remains to be done and banks have to concentrate and perform well in near future. He
suggested that – Dual control (RBI & State Govt.) should be removed. Management audit
is necessary and need of corporate governance.

Brijesh K. Sahoo & Anondadeep Mandal3 (2011), in their article entitled,

“Examining the performance of Banks in India : Past-Tradition Period”, evaluates the
performance of Indian banking sector during the post transition period (1997-2005). The
productive performance scale elasticity, efficiency and capacity utilization parameters are
calculated using Data Envelopment Analysis (DEA). The positive trend of the reform
process is visible through the increase in technical efficiency. The cost efficiency
parameters state that the nationalized banks are yet to exercise their cost minimizing

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principles compare to the other banks. Finally the empirical findings show the significant
difference between the technology and the market based hypothesis. This results are in
line with the distinction between economies of scale and returns to scale.

Jayanta Kishor Nandi & Naveen Kumar Chaudhari4 (2011), in their research
paper entitled, “Credit Risk Management of Indian Banks (Loan Portfolios) : Some
Empirical Evidence”, have give some empirical evidences for credit risk management of
Indian banks particularly for loan portfolios. The authors conducted a research, taking the
data for last six years. Altman Z-score model is used to arrive at an equation of the Z-
score. The model, which have been developed is an application of multivariate
discriminant analysis in credit risk modeling to achieve the objective. The basic function
of most of the banks are the acceptance of deposits from public and lending funds to
public, corporate etc. The business of lending has brought trouble to individual banks and
thus giving rise to credit which is risk of default. The present paper is designed to
develop an internal credit rating model for banks which improves their current predictive
power of financial risk factors. It also studies how banks assess the creditworthiness of
their borrowers and how can they identify the potential defaulters so as to improve their
credit evaluation.

Shelke Vishnukant5 (2012), in his research entitled, “A Study of Personnel

Management & Human Resources Development in Urban Co-Operative Banks in Latur
District” has stated the social significance with the following three points–

• Maintain a balance between jobs available and job seekers.

• Providing most productive employment.
• Making maximum utilization of the resources.
The researcher has concluded that, “Out of th17 Urban Co-Operative Banks in
Latur District only 2 banks mangers completed their Post Graduation. Urban Co-
Operative Banks in Latur District are not providing facilities like ATM, Debit
Cards, M-Banking, E-Banking etc. Urban Co-Operative Banks in Latur District
have not given dividends. Urban Co-Operative Banks in Latur District charge
high rate of interest 15% & 16%. Urban Co-Operative Banks in Latur District
faces political influence & interference.”
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 Shivratri Chandramauli R.6 (2013), in her valued research study on personnel
manage in cooperative banks entitled, “Personnel Management in Co-operative Banks
With Reference to Urban Co-Operative Banks in Nanded District” has made some
notable observations regarding personnel management in Urban Cooperative Banks. The
researcher concluded that, “none of the Urban Co-operative bank has a separate
personnel department. Recruitment through advertising & casual application is the
principle source of recruitment. According to the researcher method of selection &
placement of employees needs to be improve in changing scenario. The researcher further
suggests training and development in Urban Co-Operative Banks needs to be
reformulated.”

Mihir Dash & Annyesha Das7 (2013), in their research work entitled,
“Performance Appraisal of Indian Banks Using CAMELS Ratings” have made a
comparative study of public sector banks and private sector banks regarding the
performance appriasal. The study is based upon secondary data. The data used for the
study were audited financial statements of sample 58 Indian banks for 2003-2008. The
result show that private / foreign banks fared better than public sector banks. The two
contributing factor for better performance were Management soundness and Earnings and
profitability. According to the authors, there has been some improvements in the Indian
banking sector after reforms and CAMELS framework is natural framework to analyse
this improvement.

Inderpal Sing8 (2014), in his research paper entitled, “Human Resource

Accounting”, has focused to study regarding human resource account. The author
discussed in this paper the term Human Resource Accounting at a length. According to
the author, “It is fact that recognition, however, of the importance of people in
organizations as productive resources by the accountants is a recent origin. In the
management terminology it is termed as “Human Resource Accounting (HRA)”. The
author further stated that, “In the simplest form HRA involves the qualification of the
costs of recruitment, training and maintenance of the entities human assets. According to
the American Accounting Association, ‘HRA is a process of identifying and measuring
data about human resources and communicating this information to interested parties.’

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Characteristics like personality, self-control, devotion, quality, skills, talent. Loyalty and
initiatives differentials the human resource from the physical resources companies like
Infosis went out to value its human resource which was Rs. 184 crores. Much more than
the value of its physical assets of Rs. 84 crores.”

N. Ramu9 (2014), in his research paper entitled, “Human Resource Management

Strategy in Co-Operative in India”, has studied the management strategy used in
cooperative sector in India for human resources management. The paper poses the
question what are the HRM policies of Co-Operative banks in India. According to him
Human Resource Management has been much talked about in recent years. For some, it
heralds a new age. Where human resource issues at last become significant in the
consideration of business strategy and HR practitioners at last attain a place in sun.
Human Resource strategies sets out what the organization intends to do, about the
different aspects of its human resource management policies and practices. They will be
integrated with the business strategy and each other.

Tondon Chand & Noman Sonqri10 (2015), in their research paper entitled,
“Critical Success Factors of Banking Industry in India” have commented on success
factors of banking industry. The authors stated that, “In an industry as multifaceted as
that of financial intermediation, no simple formula can predict accomplishment and
failure from the conteiguous encironment. Instead of guessing winners and loosers, we
strive to spot the major factors that decide a banker success. Todays banking industry is
characterized by escalating universal competition and quick advancement in the
liberalization of the banking market. Management should stress the strength that will give
the bank a competitive advantage.”

Gupta Debjyoti Das11 (2015), in her research paper entitled, “Profitability of Old
& New Private Sector Banks in India During 2001-02 to 2010-11 – A Comparative
Empirical Analysis”, has focused the study on profitability of old and new private sector
banks in India. The researcher has taken the period of 10 years (a decade) for the analysis
from 2001-02 to 2010-11. The researcher concludes that, “Indian banking industry has
expenenced sudden pervasive and massive changes after 1991. Unfortunately economic
reforms has not been able to produce results as expected. Indian banking sector has

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witnessed rise of technologically advanced new private sector banks. Old private sector
banks did not get any respect from the professional world.”

Goldy Garf and Ranjeet Kaur12 (2015), in their research paper entitled, “Job
Satisfaction Level of Employees : A Study of Central Co-operative Banks in Punjab”,
have devoted the study for the analysis of job satisfaction level of the employees working
in Co-operative banks in Punjab. The authors concludes that, “When a person says that he
has high job satisfaction, it means that he really likes his job, feels good about it and
values his job dignity. Job satisfaction is important technique used to motivate
employees. The present study aimed at studying the perceptions of employees about their
job with co-operative banks in Punjab. The findings reveal that employees considered
their job stimulating and challenging the designation and experience of employees does
not significantly influence their opinion about their job.”

2.3 Literature on Insurance

In this section, the researcher has presented the review of literature related with
insurance.

Panda G. S.13 (1995), in his valued book on insurance entitled, “Principles &
Practice of Insurance”, has discussed at length the principles and practices of insurance.
According to the author, “Insurance is a way of reducing uncertainty of occurance of an
event. Insurance is an investment. Since birth it has assumed many functions. Its basic
purpose is to derive plans to counteract the financial consequences of unfavourable
events. It formulates a financial mechanism which provides a pool to which the persons
exposed to risk may contribute. The unfortunate few of this group who encounter the risk
get compensation out of this pool. Hence insurance is based on the principle that a group
of persons facing a particular risk joint together and cooperate to form a pool. A few of
them may be unfortunate and meet a loss. The persons who are fortunate and don’t meet
loss share the burden of the unfortunate suffers.” Insurance is a social device for
eliminating or reducing the cost to society of certain types of risk. Discussing the
concept of risk author writes, “The concept of risk in insurance refers only to uncertainty
on economic matters. Non-economic risk of respect, insult, prestige or love are not dealt

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in this subject. The study shall be the different types of risk, the nature of risk, the degree
of risk, and the value of risk. There are two types of risk – (1) Pure or Static and (2)
Dynamic or Speculative. Risk depends in value upon the possibility of loss. It is
applicable to individual and also to society. The financial and economic strength or
weakness of a person in relation to loss suffered is more important here than the amount
of actual loss. The economic strength can be roughly measured. It is equal to margin or
surplus of property available beyond his needs of sustenance or living.”

Berge D.14 (1995), in his paper entitled, “Disability Experience in the USA”, has
studied the disability experience in USA and suggested some important remedies. He has
discussed the importance of insurance in this paper. The author says that, “As human
society developed, commerce and business started flourishing and idea of insurance was
promoted in due course. Insurance is the group effort to reduce the sufferings of an
individual as a result of some inevitable calamities. Death, disability, sickness — are
important examples. Loss of property due to external forces also worried the individual
human being. The obvious solution was Insurance. For the provision of protection to life
and property, human beings facing the same or similar risks came together and shared in
advance the probable future loss that might take place due to specified reasons under
specified circumstances, during a specified period. This idea of collective protection was
practiced even in ancient society.”
Karve Shrikrishna Laxman15 (2003), in his book on Insurance entitled,
“Principles of Life Insurance” has commented on the need of insurance to human being.
Author stated that, “Man needs food, shelter and clothing for his survival. For the
satisfaction of these needs, he requires money; which comes from his earnings. Earnings
are a result of the capacity to earn, which may be extinguished by death or threatened by
old age or disability. These may result in the stoppage of income or the reduction in
income which is necessary for him and his family's sustenance.” The author further stated
that, “If the breadwinner lives a normal span of life, the financial arrangements which he
would have made for himself and his family members would have been fulfilled.
However if he happens to die early (premature death), his family would be deprived of
the income, which the deceased would have brought-in, had he not died.”

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 Commenting on the Indian traditional view towards insurance, the author writes,
“In India, the idea of insurance finds expression in the famous word Yogakshema
(meaning protecting what has core and using the same for the welfare of the concerned
people References to Yogakshema are found in the Rigveda as well as in various Smritis
of different periods.

Kautilya, in his Arthashastra, lays down that the people agree to pay taxes so that they are
maintained by those taxes. The king himself should maintain children, aged persons and
persons in distress, women without children and the children of helpless persons. It was
the duty of the elders to maintain the property of a minor till he attained majority. The
system of the joint family, which was a natural outcome of Janpad society, practised this
concept of sharing individual losses — ensuring co-operation, moral restraint, tolerance
and savings. It ensured the division of labour reducing the cost of production, equitable
distribution of joint family profits and overall social and economic security.”

S. Balchandran16 (2005), in his book entitled, “General Insurance”, has presented

each and every aspect of insurance industry. The author writes, “The business of
insurance is related to the protection of the economic value of assets. Every asset has a
value. The asset would have been created through the efforts of the owner, in the
expectation that, either through the income generated therefrom or some other output,
some of his needs would be met. In the case of a factory or a cow, the production is sold
and income generated. In the case of a motor car, it provides comfort and convenience in
transportation. There is no direct income. There is a normally expected life time for the
asset during which time it is expected to perform. The owner, aware of this, can so
manage his affairs that by the end of that life time, a substitute is made available to
ensure that the value or income is not lost. However, if the asset gets lost earlier, being
destroyed or made non-functional, through an accident or other unfortunate event, the
owner and those deriving benefits therefrom suffer. Insurance is a mechanism that helps
to reduce such adverse consequences.”

Gupta P. K.17 (2007), in his book entitled, “Insurance & Risk Management”, has
discussed the concept of Insurance and Risk Management in detail. The book is a unique
attempt to explore the functional areas of insurance business more specifically, the

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organisation structures of insurance companies, design and development of products,
management of claims, pricing and marketing of products and the financial operations of
insurance companies. It also includes the two new emerging areas — the reinsurance
business and the automation of insurers operations.

The book introduces the concept of risk management to the readers. First chapter
of the book conceptualises the risk definitions, classes of risk and the methods of
handling risk. The second chapter of the book attempts to provide an overall view of the
risk management and control systems. The third chapter has been deliberately included to
apprise the readers about the distinct approaches to risk management i.e. individual
approach and the organisational approach. It introduces insurance as a risk-mitigating
device. Chapter 4, 5 and 6 respectively deal with the insurance concepts, the
mathematical theory and the globalisation of the insurance industry. Chapter 7 tries to
involve an integrated approach to the risk management from a strategic perspective. The
book also explores the insurance business environment in India. It traces the historical
evolution of insurance, the privatisation of the insurance sector and the accounting and
taxation aspects. The book segregates the insurance business into life and non-life.
Section I of this part deals with the life insurance business, the practical aspects of
pricing, claims, the players and their products. Section II focuses on non-life category.
The first two chapters discuss the history of general insurance, the players and their
performance. The rest of the chapters specifically cover product wise the various non-life
insurance categories. Attempt has been made to provide the statistics to the maximum
possible extent.
Jain Mamta18 (2007), in her book entitled, “Insurance – HRD Practice”, has
stated that, “The importance and value of human assets were recognized in the early 1990
when there was a major increase in employment in form of service, technology and other
knowledge based sectors. In these firms the intangible assets, especially the human
resources, contributed significant by to the building of share holder value. The critical
success factor for any knowledge based company is its highly skilled and intellectual
work force.” This study of General Insurance Corporation of India was undertaken
primarily. The author further said that, “Insurance has come up as a very important
financial service in most of the part of the world. The insurance is considered as one of

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the important segment in an economy for its growth and development. This industry
provides long term funds that are essential for the development of basic infrastructure.”
The book contains 7 chapters. This is a study of General Insurance, therefore the author
have presented organizational structure of the GIC. The author studied various aspects
related with human resources management in general insurance sector such as, human
resources planning and recruitment, selection policy, training and performance appraisal
of the GIC, promotion, discipline and handling of grievances etc. The study contributes
valuable observations on general insurance.
Kutti Shashidharan K.19 (2008), in his book on life insurance entitled,
“Managing Life Insurance”, has given special attention on life insurance. The author has
given a separate chapter on life insurance and its role. Highlighting the importance of
savings and life insurance the author writes, “The ability to purchase insurance depends
not only on income but also on the readiness of households to postpone present
consumption and save. Life insurance institutions as financial intermediaries have been
seen as conduits for mopping up the savings surplus of the people. A low rate of savings
would obviously be an inhibitating factor for the development of the life insurance
market. What is not so obvious, however, is the surmise that life insurance market would
develop as more and more savings surplus is generated. ” The author has focused
extraordinarily on savings with life insurance. He further writes, “The savings role of life
insurance derives from the cash value element, which is built into every level premium
contract. It is especially prominent in bundled contracts (like endowment), which
provides for a survival benefit in addition to the death benefit.” This book is proved to be
a important and useful writing on insurance to the students and the insurance agents and
insurance company executives. The book explores various issues related with the
insurance and discusses various aspects regarding importance of insurance and its need
and utility in detail.
Mishra K. C. & Kumar C. S.20 (2009), in their book entitled, “Life Insurance –
Principles and Practice” has stated that, “Individuals and businesses increasingly
recognize that high levels of professional knowledge and skills are essential to their
success. They are increasingly spending on professional education. Such expenditure is
considered an investment into a collective future. Investment in human capital has thus

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moved to the centre-stage of strategies in countries to promote economic prosperity,
better skilled labour forces, social cohesion, and other positive individual and social
benefits.” This book is a family member of a comprehensive series of insurance books
primarily crafted to provide insight into the realm of insurance. Together the series seeks
to analyse the concepts in underlying areas of key importance to both insurance service
providers and the insuring public. The main objective of the series is to bring together
crucial evidence on the role of human capital involved in executing insurance services
and by implication further professionalism in insurance. Insurance fosters economic well
being of the society by providing the much needed capital and cash flow protection to
individuals and business. As part of its mission, one of the main action areas of this series
of books is "assistance to students of this domain to help them improve their information
seeking capacities". The availability and quality of learning material are critically
dependent upon new analogies and illustrations the authors are capable of bringing to the
pages of the books. Being aware of this importance, authors largely connected with
National Insurance Academy in India have made their effort to ensure authentic data
collection, processing, quality control, analysis and dissemination through pretesting of
the concepts in large-scale training programmes at the academy.

Periasamy P.21 (2011), in his book entitled, “Principles and Practices of

Insurance”, has said that, “Principles and Practice of Insurance is a wide and diverse
subject. In view of the increasing scope of Insurance, it is essential to acquire a general
basic knowledge of the insurance business as a whole and this should certainly be the
first step to be taken by the new entrant with an insurance career ahead of him.” While
discussing the risk management and its nature the author says that, “The entire business
process has to face numerous risks and uncertainties. Uncertainty comes from changes in
economic, social and political trends (such as a spike in oil price or interest rates), the
arrival of new technologies (like internet) or shifts in consumer demand (preference for
personal computers). Thus in business, as in private life, there are dangers and risks of
every kind. The concept of risk may be explained as the possibility of unfavourable
results following any occurrence. Risks arise due to uncertainties in regard to cost, loss or
damage. The loss or damage may be related to financial loss or non-financial loss. In a
dynamic and free economy and in life, such risks are ineviatable.” The book contains 35

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chapters. The author has discussed the nature and scope of risk management. The author
has also discussed the methods of handling risks, management of risks, nature of
insurance business, reinsurance etc.
Bhargava B. D.22 (2008), in his book entitled, “Insurance: Meaning and Its
Principles”, has while discussing the barriers to insurance in India, the author says that,
“Certain government banks are unwilling to accept insurance covers written by private
insurance companies (i.e. Marine). Removing this barrier would increase revenues
available to private insurers and widen the choice of available cover.” The author has
focused on risk. The author said that, “To layman the word risk suggests that there is
uncertainty about an unfavourable outcome in a given situation. An economist and an
insurer are likely to use the word quite differently. Risk does not necessarily equal
uncertainty. …. For a risk to be insurable it does not need to be measurable, but it does
need to be related to a measurable financial loss, or to a valued loss. This means a loss on
which a value has been placed.” The book contains 8 chapters. The book covers
fundamental principles of insurance, insurance claim, insurance policy in India, insurance
outsourcing, insurance barriers in India, experience with the insurance core principles,
underlying principles of business interruption insurance.

Bhigania Roshankumar M.23 (2010), in his book entitled, “Fundamentals of

Insurance”, has covered the meaning, definition of insurance, the need and purpose of
insurance, principles of insurance, insurance as a social security tools. The author says
that, “Risk is there at every walks of life, risk also endangers life itself. In the same way
all financial deals, as well as possession of money and property goods etc. are fraught
with the element of risk.” The author discussed the risk at length. The author while
discussing the risk said that, “All risks do not actually occur at all times and hence it is
possible to calculate probable chances of any particular risk materializing. It is quite clear
that all the people do not face risks at the same time. Thus the transfer of risk to another
i.e. the insurer is in fact a pooling of risks. If insurance did not exist, each individual
would have to bear the losses on his own. Insurance, in effect means that each one in the
pool undertakes to bear a portion of the loss. Such an agreement has proved to be
advantageous to everyone as it is uncertain as to who will suffer the loss.” The book

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gives Evolution of Insurance, Life Insurance, Fire Insurance and Marine Insurance. The
author has focused the concepts as the part of syllabus of commerce faculty.

Mishra M. N.24 (1977), in his book entitled, “Law of Insurance”, has given the
Law aspects in this book. The author has discussed various laws related with insurance.
The book elaborates the laws regarding insurance with its all dimensions keeping in mind
the requirements of students, insurance men, lawyers and all others interested in the
subject of insurance laws. Various kinds of insurance such as Life Insurance, Marine
Insurance, Fire Insurance, Motor Insurance and Miscellaneous Insurance and its related
laws are discussed in this book. The Insurance Act 1938 is also given in this book.
Further the author has given the Life Insurance Corporation of India Act 1956, as well as
the Marine Insurance Act 1963 and the General Insurance Business (Nationalisation) Act
1972, have been briefly included in this book so that a reader interested in insurance law
may find adequate stuff on insurance law at one place.
Hansell D.S.25 (1979), in his book entitled, “Elements of Insurance” has
presented the detailed discussion about the various elements of insurance. Discussing the
elements of insurance Hansell have also commented on various types of insurance such
as: Life Assurance, Fire Insurance etc. He has further given the various aspects of life
insurance. The history of life insurance is also presented by Hansel. In the aspects of life
assurance he has discussed various things like, history, development, early forms’ of
insurance, life assurance companies Act, 1774, 1870, industrial life assurance and the
scope of life assurance.
Mann T.S.26 (1987), in his book on insurance entitled, “Law and Practice of Life
Insurance in India” has presented detailed study on the insurance business in India at
length. Discussing the life insurance in India he has also studied the Law aspect of the
life insurance. Various Laws related with Life Insurance has been studied at length by the
author. He noted that, “Legislation can eradicate a cancer; correct some definitely
established evil which defies the feebler, remedies. In view of the situation prevailing in
the working of life insurance he realised that the law is needed to act more quickly than it
does in recognising and giving effect to such business institutions.” The author further
stated that, “It is further recognised that though law is stable, yet it cannot be allowed to
remain standstill and permit legal incrustations to inhabit effective economic functioning

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of any institution, such as financial institution like life insurance. It has become an urgent
necessity to restate the law to give it new validity and make it more effective.”
Dharmendra Kumar27 (1991), in his book entitled, “Trust With Trust - The LIC
Story” has written the story of LIC from its beginning. This work is a monumental work
prepared by LIC of India with the assistance of Dharmendra Kumar. Dharmendra Kumar
reviews the progress of LIC of India right from the beginning. The details of
incorporation of LIC is discussed in detail The author also presented a detailed analysis
of pre-independence and post independence changes in the working of LIC of India. This
book is an important literature related with LIC of India and the insurance sector in India.
Sukhapure Mohini A28 (1998) in her research work entitled, “A study of Group
Dynamics with Reference to Relationship of Development Officers with Agents of the
LIC of India”, has studied the various aspects of the relationship and coordination of
Development Officers and the Agents of LIC of India. Agent is a main source of business
of LIC. He actually works on the field under the guidance of Development Officer. The
role of Agents in the business of LIC is the key role. The Development Officer is also
very much importance in the business. Development Officer provides the timely support
and information to the Agent of LIC. Sukhapure Mohini also attempted to apply the
Balance Theory of Group Dynamics advocated by Kurt Lewin. This theory is based on
the activities, interactions and sentiments shared by group members. The group members
chosen by the researcher were the LIC employees and non-employees. The development
officers are employees of the corporation and agents non-employees. The researcher has
also presented various conclusions regarding the relationship of Development Officers
and the Agents of LIC. These conclusions are very important.

Dubey O. P.29 (1999), in his work entitled, “Potential of Life Insurance Business
in India” has discussed the potential of life insurance business in India at a length.
According to the author India has a vast insurance potential. The business of insurance
can be flourish in India. There is a vast scope for this business. The second largest
population of the world resides in India. Therefore this population needs insurance. The
need of this great population can be fulfilled by the LIC. The author stated that, the
potentiality will definitely increase in future. However, the future of life insurance market

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in India will largely depend on how the increasing potential is exploited by the future
insurance operating system in the country depending on the marketing strategies adopted,
improved information technology used and effective regulation of the insurance market
by the authorities, keeping in view the insurance needs of the entire Indian population
and security for the insuring masses.
Madhu T.30 (1999), in his writing entitled, “No Kidding with Life Covers”, has
presented the importance of insurance. According to the author insurance is the primary
need of a mankind. The author stressed on the Child Insurance. He said that every child
must be insured. He has collected the views and responses of various financial experts
and parents or guardians of the children, who have insured their children lives. He has
found that, before getting the children policy he must be sure about his objective of
insurance of child whether wants an insurance cover for his child or more interested in
building a corpus say for higher education or marriage. If insurance is one’s objective, be
forewarned: investment experts say children do not need to be insured at all. Of course,
life insurance policies are meant to mitigate the financial loss. Survivors may suffer on
the death of the insured. But he opined that there is no financial suffering when a child
dies. Therefore, he says that parents or guardians are spouse to have adequate insurance
coverage; they shouldn’t have to look at pure life insurance policies.
Tripati Rao D.31 (1999), in his paper entitled, “Life Insurance Business in India”
has studied the various aspects and sides of life insurance business in India. The author
has discussed the operating results of the Life Insurance Corporation. The author has also
studied the macro-economic importance of LIC. The author has focused on pattern and
growth of life insurance business in India. Specifically, it deals with the analysis of
growth of new business, business in force, inflow and outflow life fund, i.e.
institutionalization of savings, and of the agents is dependent on the nature (part-time and
full-time) and not on the type (direct and supervised).
Abhijit Roy32 (2000), in his article entitled, “Amendments to Insurance Act,
1938” has presented various amendments to Insurance Act – 1938 with reference to
privatization of Insurance industry on the basis of Malhotra Committee Report. Abhijit
Roy concluded that, “considering the size of Indian economy and its population, there is
considerable potential that can be exploited by new entrants. The insurance industry

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should be regulated in a proper manner. The Tariff Advisory Committee (TAC) has
powers to regulate rates, terms and conditions that may be offered by general insurance
companies according to section 64 U, 64 UA and 64 UC.”
Gopalakrishnan G.33 (2000) in his study entitled “Life Insurance Products: Their
Innovation and Development” has reviewed the innovations and development of various
life insurance products. The author stated that, “Life insurance as a means of protection
against loss through death of key persons—Key Man Insurance—is one of the primary
commercial forms of life insurance. Businesses, in fact, have been built around one
particular man whose capital, energy, technical knowledge, experience, and power to
plan and execute make him the most valuable asset of the organization and a necessity for
its successful operation. Numerous examples may be pointed out to illustrate the depen-
dence of successful business upon personal equation. Thus, a corporation or firm may be
vitally interested in one or few of its officers whose ability as an executive may be the
basis of its bond issues or bank credit or market credibility.”
Vyas Rajeshree and Joseph Tamilmaran34 (2000) in their research work
entitled “Perception of Life Insurance Products: Tool for Long-term Financial Planning”
have observed some important factors of life insurance products which are good form
investment point of view. An individual cannot take high risk in investment. Therefore,
the authors have recommended that to invest in life insurance products so as to get good
returns on the investment and get another great benefit of risk cover. Duration of the
investment may be 10 to 25 years. According to the authors, “Life insurance is the only
instrument that ensures a person’s and his family’s financial security.” This research
work is based on the primary survey conducted through a market survey to find out the
perception of life insurance products as a tool for long-term financial planning.
Chakraborty Shibashish35 (2002), in his work entitled as, “Factors Affecting
Consumer Choice of Life Insurance Products” has highlighted on the usefulness of the
life insurance policy. The author has given many aspects of the choices generally made
by the customers of life insurance policies. He has discussed at length on the choice
factor of the customer of life insurance policy. He has observed various factors affecting
on consumer choice of life insurance products. According to the author, “Life insurance
business from this segment is growing at a fast rate by recognizing the similarity in

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nearly all instances, where there is a very close relationship between his/her home and the
business in which he/she is engaged. So close is this relation that a policy taken for the
special conservation of the business may often prove more valuable than a policy taken
out for the direct protection of the family. The latter policy can seldom do more than just
alleviate in a measure the financial injury caused by the death of the income-producer,
while the former may be the means of successfully continuing the operation of the
business of the deceased. Had not the former policy been taken out, the business might
have failed or declined. The family policy usually assures the continuance of a portion
only of the insured's income during life, while the policy taken for the business purpose,
since it conserves the efficiency of the insured business, may be instrumental in bringing
about the continuation of a much larger income, viz., the income from a successful
business.”
Sinha Ram Pratap36 (2002) in his research paper entitled as, “Risk-based
Supervision of Life Insurance Companies: Some Important Issues” has focused on risk
factor and importance of insurance. The author has highlighted the areas of risk factor
and suggested some important remedies to overcome the risk. The author has stressed to
life insurance as it covers risk factor as well as gives good returns on investment. Sinha
writes, “Insurance is an economic device whereby the individual substitutes a small,
certain cost (called premium) for a large uncertain financial loss called the contingency
insured against, which would exist if it were not for the insurance. The view that the
essence of insurance is risk transfer emphasizes the individual's substitution of a small
certain cost for large uncertain loss. Emphasis on pooling or risk sharing emphasizes the
role of reducing risk in the aggregate. Insurance can exist without pooling, but not
without transfer.
The business of insurance is experiencing dramatic changes worldwide. The move
towards increased competition is prompting numerous countries to restructure their
insurance markets and regulatory systems. The regulators depending on their benevolent
competence have the unenviable task to accommodate market changes while continuing
to provide the necessary protections within a market system. Even the cardinal principles
of insurance are often undergoing change as practice has a tendency to displace
principles.”

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 V N S Pillai37 (2002) in his research article entitled “Life Insurance Policies in
India: Unique Provisions Protect Families” has stated that, “The Life Insurance polices
are not indemnity policies. They are purchased with two objectives-savings and providing
some security to legal heirs of the insured in the event of misfortune. The insurable
interest is one of the important factors that influence the life insurance contact; otherwise
they become wagering contact and are void. The life insurance policy is considered as
property. It is an actionable claim as defined under section 130 of Transfer of Property
Act, 1882. It can be assigned or transferred. Insurance Act, 1938 provides for assignment
and transfer of life policies and nomination. A number of disputes arise during the
payment of claims of life insurance policies. They may relate to payment of claims of life
insurance polices. They may relate to payment of premiums, age of the insured or
misrepresentations by the person purchasing the policies. The IRDA Act, 1999 and its
Regulation made there under and the Consumer Protection Act, 1986 also govern the life
insurance claims.”
Kishore R. B.38 (2002) in his research article entitled “Life Insurance and
Affluent Segments of Market” has noted that, “Competition is a constant war of attention.
While different strategies are adopted to have a competitive edge over others, it is
essential that a sizeable cake of premium is garnished from affluent segments. This
segment is soaked in prosperity and any sensible marketer would ensure prospecting such
rich harvests well before competitor agent or advisor arrives.” This article explores
market data, sources, methodology, need for professionalism to systematically target
these affluent segments by becoming Crorepatis and MDRT achievers. The article also
helps sharpen the style of salesmanship to be leaders and champions in the profession.
Bodla B S and Sushma Rani Verma39 (2002) in their research paper entitled
“Life Insurance Policies in Rural Area: Understanding Buyer Behavior” have studied the
approach of rural India towards life insurance policy. The paper is an Endeavour to study
buyer behaviour regarding life insurance policies in the rural area of Haryana, being one
of the go-ahead states of our country, was chosen for the study. The results of the study
are based on a field survey of 188 respondents selected from five villages of district
Hissar by using convenience sampling technique. The study brings out several useful
findings and the more important among them are- the respondents belonging to the age

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group 31 -40 years dominate the rural insurance market; agents are the most important
source of information and motivation as the people take a policy that is suggested by the
agent. Money-back policy is the most preferred policy in the rural area, followed by
Jeevan Anand and Endowment policy, and the rural people have less faith in private
players.
Sandeep Varma40 (2002) in his case study entitled “LIC: Facing the Private
Sector”, has studied the competition and problems faced by LIC due to private sector
insurance companies especially after privatization era. The case is about the various
changes that happened in the Indian life insurance sector after privatization. Till
privatization, Life Insurance Corporation of India (LIC) was the only company providing
life insurance services in India. LIC sold its policies as tax instruments and not as
produces giving protection against risk. Most of the customers were underinsured with no
flexibility or transparency in the services provided. Before the entry of private players,
insurance penetration and awareness was very low especially in rural India. The
insurance sector opened up for competition from private insurance companies with the
enhancement of the Insurance Regulatory and Development Authority (IRDA) Act, 1999.
As per the provisions of the Act, the IRDA was established on 19 April 2000. This
marked the beginning of liberalization of the Indian insurance sector. By 2006, there
were 14 private insurers in India whose market share was increasing every year.
Innovative products, smart marketing and aggressive distribution helped the private
sector grow within a very short period. Slowly but steadily, awareness about insurance
was also increasing in India. The increase in penetration and awareness could be
attributed to the stiff competition generated among public and private players. As a result
of competition posed by the private insurers, LIC launched many new products, improved
their services and increased expenditure on advertising. The case facilitates discussion on
the strategies to be adopted by LIC to stay ahead of competition. It could also be used to
discuss the future of the Indian life insurance sector.
Subramanian R.41 (2002) in his study entitled “Is Investment in Insurance
Products A Worthwhile Option?: A Study Based on HDFC Standard Life Insurance
Plans” has studied various aspects of insurance plans of HDFC Standard. The author
stated that, “A policy of saving can yield only a small amount at the start, while a policy

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of insurance from its beginning guarantees the full face value, and thus safeguards the
policyholder against failure through early death, to have sufficient time to save
adequately through other channels. For instance, if one is able to save Rs. 500 annually, it
will take nearly fifteen years to accumulate a fund of Rs. 10,000, assuming that the
accumulations are safely invested annually at 4 per cent, compound interest. Yet, the
resolution of the head of the family to protect the home with such a savings fund is
contingent upon his surviving the full period, and might be defeated by death before the
savings have reached any appreciable sum. To depend entirely on saving as a means of
providing for the future of the family is, to say the least, a highly uncertain policy to
pursue. The first requisite in providing for the future support of dependents is absolute
certainty, and this can be secured only by using life insurance as a protection against the
possible failure to continue the annual accumulations to the savings fund because of early
death. Through life insurance the suggested fund of Rs. 10,000 can be assured in any
case. Upon death the insurance company pays the face of the policy, while in case of
survival the insured is given the necessary time to accumulate a competence.” The paper
elaborates on the insurance products, demand and supply issues. The study is based on
the existing players and their insurance strategies, and certain recommendations are made
for new players entering the Indian market.

2.4 Literature on Bancassurance

In this section, the researcher has presented the review of literature related with
bancassurance.

Dilip Dasgupta42 (2002), Consulting Editor and Monika Agrawal, Research

Associate of Global CEO has in their writings entitled, “SBI Life Insurance” is an
Interview. This interview is between S Krishnamurthy, Managing Director and CEO, SBI
Life Insurance and Interviewed. This interview gives some brief about the SBI Life
Insurance Companies. A joint venture between SBI and Cardif SA of France called the
SBI Life Insurance with an authorized capital and paid up capital ofRs.500 cr. Each is
placed as a pioneer ushering in the Bancassurance into India. The SBI Group will be a
platform to sell the insurance products besides other banking products with a field force

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of 25,000 insurance advisors, across 120 branches in 110 cities apart from the 8,000
branches of SBI Group.
Sreesha C. H.43 (2002), has in her research article entitled, “Why Banks in India
Pave Their Route to Bancassurance”, has observed some important issues related with
bancassurance. The author has also studied various aspects regarding bancassurance.
Author says that, “Bancassurance in India is a new phenomenon and it has been
envolving since 2002. This article examines the benefits of cross selling of insurance
products through bank branches to State Bank of India, one of the leading public sector
giants in India.” Author has in her study also focused on major bancassurance tie-ups in
India. Also the author has given much attention towards the thing that how bancassurance
helps banks – as a win-win strategy to banks and insurance companies. She writes,
“Banks offer an untapped and successful mode of distribution. Banks with their brand
image and existing customer relationship offer a natural market for selling of insurance
products. Bancassurance also offers lower distribution costs and higher productivity. The
reason for the low productivity in the traditional sales agent distribution system is the
amount of time the agent has to spend on prospecting or trying to find the right
customer.”
Mishra M. N. & Mishra S. B.44 (2009), in their book entitled, “Insurance
Principles and Practice”, has focused on the concept of insurance, the types of insurance
and many more aspects related with insurance. The author included a separate chapter on
Bancassurance also. The books has been divided into five parts, Introduction, Life,
Marine, Fire and Miscellaneous. The book covers prospects of insurance, privatization of
insurance industry, insurance innovations, risk management, health insurance,
catastrophe insurance liability insurance, credit insurance and surety, corporate
governance, bancassurance and international insurance. It also includes all the latest
provisions of insurance legislation beginning from insurance Act 1993 to IRDA
(Protection of Policyholder Interest) Regulation 2002. The book deals with the latest
development of insurance in India and abroad along with the possibilities of managing
the insurance sector. The authors sated that, “Insurance in India has taken galloping stage.
It has shown maximum growth rate of 56.99 per cent in 2006 in world after liberalization
(61.58%). Recently De-traffing since Jan. 1, 2007 has facilitated the insurer to serve the

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society with quality and lowest cost in the competitive environment. Now insurance is
not limited only to life and property risks, it has expanded its scope to insure all the
uninsurable risks. It has innovated avenues to manage all the risks attached to business
industry, agriculture, transport, banking and credit, health catastrophe, liability, gurantee
and surety bancassurance and corporate governance. It has expected that in future
political parties would go for insurance of the risks involved in election. However, the
present state of insurance has tried to insure all the risks related to family, society,
business, industry and other economic activities.” The book has importance for studying
the insurance business and its prospects. The book is also useful for studying
bancassurance concept, principles and practices.

Sahoo S. C. & Das S. C.45 (2009), in their book entitled, “Insurance

Management”, have stated that, “Insurance is the most booming and one of the profitable
sectors in India. Since liberalization, India's economy has developed tremendously and
insurance sector has been providing various kinds of products and services to cater to the
needs of customers. India had been one of the under insured countries but because of new
entrants, the competition level has gone up and the coverage of population has enhanced.
IRDA has regulated all the aspects including advertising, social obligation, protection of
policy holders. By detariffing, Insurance Regulatory and Development Authority
facilitated the insurer to serve the society with quality and lowest cost in this competitive
environment. This book has been written after not finding a book covering syllabi of
different universities and that presented insurance management from the Indian
perspective and covering specific issues such as IRDA guidelines, project, assignments
and case studies.” The book provides a comprehensive coverage of Insurance. The book
has been organized in seven parts. The first part contains four chapters including
understanding of risk, types and sources of risk, risk management and control,
understanding insurance, insurance contract and history of insurance, etc. This part
elaborates the complexities in Risk Management and tries to emphasize on fundamentals
of Insurance. The also covers nine chapters, introducing life insurance and focuses on
different aspects of life insurance such as policy conditions, mortality table, premium
payment pattern, life insurance products, settlement of claim and organization of LIC
India. Part three covers various aspects of fire insurance such as principles of fife

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insurance, different fire insurance policies and claim settlement. It also deals with marine
insurance contract, marine insurance policies, marine losses, premium payment, and
clauses in marine insurance policy and claim settlement in marine insurance. It explores
insurance regulations in India, starting from Tariff Advisory Committee and
detariffication, registration of insurance company, protection of policy holders, marketing
of insurance products, and guidelines for advertisement, loss prevention association. It
also includes bancassurance, reinsurance and double insurance.
Sethi Jyotsna & Bhatia Nishwan46 (2012), in their book entitled, “Elements of
Banking and Insurance”, have studied the various aspects related with banking and
insurance. This book is an attempt to describe the role of banking and insurance sectors in
the current era of globalization, privatization and liberalization. Besides, the strides made
in the field of information technology in recent years, have significantly impacted the
operating environment resulting in increased competitive pressures and changing
customer demands. A corollary of this is the increased employment opportunities in these
sectors are directly or indirectly. The book contains 27 chapters and appendix. The
authors presented brief history of banking, business of banking, banker customer
relationships, structure of Indian banking system, RBI, Commercial Banks, Public Sector
Banks, Private Sector Banks, Local area Banks, Indian Banks, Foreign Banks, and
various types of banks and financial institutions at length. The authors also given the
recent developments in banking industry. The authors have discussed the banking sectors,
corporate banking, retail banking, international bankin, rural banking, non-banking
financial intermediaries also. The author also focused on Electronic Banking, Loans and
Advances, Priority Sector Lending, Export Credit, Annual Report and Balance Sheet of a
Bank, Project and Working Capital Finance, Banking Legislation, Banking Sector
Reforms and NPAs, Practical Banking etc. The authors also covers Importance of Risk
Management, The Concept and Risk and many more aspects related with risk
management. The book also reveal with Insurance. It includes various aspects related
with insurance such as – Introduction to Insurance, Life Insurance, Fire Insurance,
Marine Insurance, Motor Vehicle Insurance, Health Insurance, Miscellaneous Insurance,
Reinsureance, Insurance Pricing, Underwriting, Policy Servicing and Claim Settlement,

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Channels of Distribution, Legal Framework, Indian Insurance Industry : Transition and
Prospects. The authors have also discussed Bancassurance at a length.
Grover Nidhi and Bhalla G. S.47 (2013), in their research paper entitled,
“Profitability Gains from Bancassurance : A Case Study of State Bank of India” have
focused to presents the profitability gains of SBI from bancassurance. The present paper
is an attempt to measure profitability gains from bancassurance by taking a case study of
State Bank of India (SBI). The CAMEL indicator approach has been used to assess the
impact of bancassurance on the financial performance of SBI. The analysis reveals that
the bancassurance has improved almost all components of CAMEL model significantly
except four indicators namely, Capital Adequacy Ratio (CRAR), Non-interest income
(NII), Return-on-Assets (ROA) and Return-on-Equity (ROE).
In the present analysis, the CAMEL model has been used to identify the possible gains in
profitability of SBI. Simple averages and t-test have been used to evaluate the impact of
bancassurance on indicators of bank’s profitability. The analysis reveals that the
bancassurance has improved almost all components of CAMEL model except four
indicators namely, Capital Adequacy Ratio (CRAR), Non-interest income (NII), Return-
on-Assets (ROA) and Return-on-Equity (ROE). The insignificant improvement in these
ratios is the matter of concern and must be taken care of by the policy planners. Though,
some of the indicators have witnessed an improvement during the post-bancassurance
era, an improvement in the aforementioned variables are required for long-run viability of
the bancassurance.
Mishra Nandita48 (2012), in her research paper entitled, “Bancassurance :
Problems and Challenges in India”, has attempted to explain the scope for bancassurance
models and strategy as feasible source of fee based, non-interest income. India has the
largest banking network on one hand and lower insurance penetration and insurance
density on the other hand. While analyzing the present trend on banks handling insurance
products , it also highlights some of the likely issues in general as well as specific
problems faced by banks , as result of which bancassurance has suffered. The paper
concludes by suggesting strategies and policies to make bancassurance a win-win
situation for all the parties involved, the customer, the insurance companies and the
banks.

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 Kulkarni Shubhada Mohan49 (2012), in her research paper entitled,
“Bancassurance : Can You Bank on It” has defined bancassurance in her own words.
According to the author, “Bancassurance is defined as the insurance distribution model
where insurance products are sold through bank branch network. The presence of several
banking groups as promoters of insurance companies is of great significance to this
model. With a network of over 80,000 branches, spread across the length and breadth of
the country banks are having the necessary potential to make bancassurance the most
efficient way to achieve financial inclusion in insurance sector.” Focusing on
bancassurance author further writes, “The bank customers with higher average premium
per-capita provide quicker means to grow for insurers. The complementary nature of
insurance products towards the bank advances (e.g. credit life) provide synergies in
operations to the entire financial sector. The ease of access to bank customers reduces
servicing costs, contributes to lower lapsation of insurance policies and hence lower costs
to the economy.” Concluding the topic Shubhada Kulkarni commented as – Banks see
value in insurance business due to complementarily of products, fee income derived from
the distribution of insurance and ease of recovery of advances in case of death of the
borrower or destruction of properties. Several banks being promoters of the insurance
companies also gain when valuation of those companies goes up due to synergies derived
from bancassurance. Life insurance is a contract between an insurance policy holder and
an insurer, where the insurer promises to pay a designated beneficiary a sum of money
(the "benefits") upon the death of the insured person. Depending on the contract, other
events such as terminal illness or critical illness may also trigger payment. The need for
increasing the reach of life insurance in India is pretty obvious. To increase penetration
level to a higher level than the present one will require more efforts. Banks can play an
effective role in this context. The untapped potential can be used with proper training of
involved human resource.
Rajput Venkatesh U.50 (2013), in his research paper entitled, “Research on
Bancassurance” has explained the tern bancassurance with all sides. According to the
author, “ Bancassurance simply means selling of insurance products by banks. In this
arrangement, insurance companies and banks undergo a tie-up, thereby allowing banks to
sell the insurance products to its customers. This is a system in which a bank has a

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corporate agency with one insurance company to sell its products. By selling insurance
policies bank earns a revenue stream apart from interest. It is called as fee-based income.
This income is purely risk free for the bank since the bank simply plays the role of an
intermediary for sourcing business to the insurance company.” The study concludes –
The success of bancassurance greatly hinges on banks ensuring excellent customers
relationship; therefore banks need to strive towards that direction. As pointed out by Low
(2004), the changing mindset is cascading through the banking sector in India and this
would be a right time for banks to resorting to bancassurance, especially in the context of
proactive policy environment of regulatory authorities and the Government.
Shreesha51 (2014), in her research paper entitled, “Efficiency Gains of
Bancassurance – Insurance Companies Perspective” has discussed at length on the
efficiency gains of bancassurance. She stated that – “Nowadays, more than 40% of the
business of the insurance companies are done through the Bancassurance channel.
Insurance companies can leverage the database of banks and banking outlets to sell out
their product and thereby they can increase the level of rural penetration. The penetration
level of life insurance in the Indian market is considerably low at 2.3% of GDP with only
8% of the total population currently insured. Thus, Bancassurance provide an apparently
viable model for product diversification by banks and a cost-effective distribution
channel for insurers.”
The findings of the study reveal that the efficiency gain of Bancassurance to the
insurance companies are high. The insurance company can achieve almost all the
advantage of Bancassurance through selling their product by using the database of bank
and their branch outlets. As far as India is concerned, the major share of the insurance
sector is in the hands of the public sector. They still depend on the traditional agency
channel for insurance business. In India 70% of the population are not under the coverage
of Insurance especially in rural areas.
Rebeena Alavudeen and Dr. S. Rosa K. D.52 (2015), in their research paper
entitled, “Growing Role of Bancassurance in Banking Sector”, have defined
bancassurance as “Bancassurance is the allocation of insurance products through the huge
network of banks whereby, banks act as a distribution channel for providing varieties of
banking and investment products and services.” The objectives of the paper are – 1. To

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examine the recent trends of bancassurance. 2. To analyse the impact of bancassurance
on insurers, customers and banking sector. 3. To study the marketing and distribution
channels of insurance products and the last is 4. To examine the issues and problems of
bancassurance. The authors have concluded that, “The insurance industry in India has
been progressing at a rapid speed since the inception of this sector. There is a bright
future for bancassurance in the Indian insurance market. Growth rate of insurance income
is remarkable in some of the banks so there is very good scope for further development in
the selling of bancassurance products by the banks in the long run. We can conclude that
bancassurance is gaining recognition in the market.”

Hector Costello53 (2019), in the research paper entitled, “Bancassurance Market :

Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-24” has
been discussed the various trends in bancassurance market, its share and size also the
growth and opportunity. The researcher has also given forecast regarding these aspects
for the period 2019-24. He has pointed out some important questions these are –

1. How has the global bancassurance market performed so far and how will it
perform in the coming years?
2. What are the key regions in the global bancassurance market?
3. Which are the popular product types in the global bancassurance market?
4. What are the key business model types in the global bancassurance market?
5. What are the various stages in the value chain of the global bancassurance
industry?

The researcher has answered these type of questions in this article. The issues are
discussed in detail. The author writes: “The global bancassurance market reached around
US$1166 Billion in 2018. The market is further projected to reach a value of US$1665
Billion by 2024, growing at a CAGR of 6.1% during 2019-2024. Bancassurance refers to
an arrangement between a bank and an insurance firm, wherein the bank can earn
additional revenue by selling the products of the insurance company. It also helps to
expand the financial product portfolio of banks, thereby increasing their turnover with
little or no capital outlay which further gives a high return on equity.”

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 Agarwal Sanjay54 (2019), in his work entitled “Indian Insurance Industry :
Distribution Channel Analysis” has presented an analytical report on Indian Insurance
Industry. According to the author, “The direct sales channel continues to be dominate
group business, while for the individual business bancassurance has risen to the fore
alongside the agency channel, while alternative channels are still in nascent stage.” The
author has presented yearwise business figures of bancassurance in this work. He writes,
“Bancassurance refers to the selling of insurance products through a bank’s distribution
channel to the bank’s customers. The term ‘bancassurance’ first appeared in France and
the concept spread across the globe as the insurance industry looked for new channels of
distribution to grow their customer base.” The author further says that, “In India, the
sectoral reforms in 2001 not only triggered the opening of insurance sector for private
participants but also brought about substantial changes to product design and innovative
ways of marketing and distribution. Several banks promoted insurance companies, either
singly or jointly, in India prompted by the global success of the bancassurance model in
India; insurance companies were able to access the bancassurance channel in 2002 after
RBI released relevant norms for banks to operate as corporate insurance agents.”

Thus, in this chapter the researcher has presented an overview of related literature.
The review is divided into three parts such as review of literature on Banking, literature
on Insurance and literature on Bancassurance.
References:

1. Sharma Manoranjan (2005), Studies in Money, Finance and Banking, Atlantic

Publishers & Distributors, New Delhi.
2. Kolhe Shridhar M. (2011), Financial Analysis of Urban Co-Operative Banks in
Marathwada Region – With Special Reference to Parbhani District, Unpublished
Ph.D. Thesis S.R.T.M.U. Nanded.
3. Brijesh K. Sahoo & Anondadeep Mandal (2011), Examining the performance of
Banks in India : Past-Tradition Period, The IVP Journal of Bank Management,
Vo. X, No. 2.

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4. Jayanta Kishor Nandi & Naveen Kumar Chaudhari (2011), Credit Risk
Management of Indian Banks (Loan Portfolios) : Some Empirical Evidence, The
IVP Journal of Bank Management, Vo. X, No. 2.
5. Shelke Vishnukant (2012), A Study of Personnel Management & Human
Resources Development in Urban Co-Operative Banks in Latur District,
Unpublished Ph.D. Thesis S.R.T.M.U. Nanded.
6. Shivratri Chandramauli R. (2013), Personnel Management in Co-operative Banks
With Reference to Urban Co-Operative Banks in Nanded District, Unpublished
Ph.D. Thesis S.R.T.M.U. Nanded.
7. Mihir Dash & Annyesha Das (2013), Performance Appraisal of Indian Banks
Using CAMELS Ratings, The IVP Journal of Bank Management, Vol. XII, No. 2.
8. Inderpal Sing (2014), Human Resource Accounting, Review of Professional
Management, Vol. 12, Issue – 2.
9. Dr. N. Ramu (2014), Human Resource Management Strategy in Co-Operative In
India, Indian Economic Panorama, Vol. 23, No. 1, New Delhi.
10. Tondon Chand & Noman Sonqri (2015), Critical Success Factors of Banking
Industry in India, International Journal of Business Management, Economics &
Information Technology, Vo. 7, No. 1.
11. Dr. Debjyoti Das Gupta (2014), Profitability of Old & New Private Sector Banks
in India During 2001-02 to 2010-11 – A Comparative Empirical Analysis, Journal
of Commerce and Management Thought, Vol. 6, No. 2.
12. Dr. Goldy Garf, Dr. Ranjeet Kaur (2015), Job Satisfaction Level of Employees :
A Study of Central Co-operative Banks in Punjab, Journal of Commerce &
Management Thought, Vol. 6, No. 3.
13. Panda G. S. (1995), Principles & Practice of Insurance, Kalyani Publishers, New
Delhi.
14. Berge D. (1995), Disability Experience in the USA, Australian Insurance Institute
Journal, 18 (2).
15. Karve Shrikrishna Laxman (2003), Principles of Life Insurance, Himalaya
Publishing House, Mumbai.
16. S. Balchandran (2005), General Insurance, Insurance Institute of India, Mumbai.

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17. Gupta P. K. (2007), Insurance & Risk Management, Himalaya Publishing House,
Delhi.
18. Jain Mamta (2007), Insurance – HRD Practice, Ritu Publications, Jaipur.
19. Kutti Shashidharan K. (2008), Managing Life Insurance, Prentice Hall of India
Private Limited, New Delhi.
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