SCOPE FOR THE BANCASSURANCE IN INDIAN LIFE INSURANCE SECTOR: AN ANALYTICAL APPROACH

Transcription

1 Scope Asian-African for the Bancassurance Journal of Economics in Indian and Life Econometrics, Insurance Sector: Vol. 12, An No. Analytical 1, 2012: Approach SCOPE FOR THE BANCASSURANCE IN INDIAN LIFE INSURANCE SECTOR: AN ANALYTICAL APPROACH Anju Verma * and Renu Bala ** ABSTRACT This paper is attempting to explore the key factors of Indian Economy that are contributing a promising future for bancassurance. The paper focuses on the following factors: low life insurance penetration and density, huge population, increasing literacy rate, huge untapped rural market and wide banking network, liberalization, privatization of the young Indian insurance sector that has broken long time monopoly of public sector and brought a stiff competition among the public and private insurers. The paper is based on secondary data. The main findings of this paper are that Indian Economy provides both the regulators (RBI and IRDA) good opportunity in the form of bancassurance, but with lots of challenge. Both regulators need to have common business vision and direction towards their common objectives and challenges finally that can prove a win-win situation in such dynamic environment. Keywords: Bancassurance, Indian Economy, Indian Life Insurance Sector, Indian Banking Sector. I. INTRODUCTION Bancassurance is one of the widely debated topics among researchers, academicians and regulators. Basically, bancaaurance is a synergy of two financial services: banking and insurance that is defined as the insurance distribution model where insurance products are sold through banks (Reddy et al., 2004, Agarwal, 2004 and Okeahalam, 2008, Report of the committee on bancassurance, 2011). These days, it has become a global trend and steadily breaking down the conventional barriers in the supply of financial products (Fan and Cheng, 2009). Bancassurance is one of the preferred channels for marketing insurance products in many countries, also proving more cost effective than the traditional ones (Soni and Singh, 2003). Experience of the European countries in bancassurance gives a valuable guidance for those countries who are interested in this insurance distribution channel particularly in the developing markets (Kumar, 2004). In the same context, currently insurers are looking for the bancassurance as a tool to increase their market penetration (IRDA, Annual Report, , Agrawal, 2003, Popli and Rao, 2009). One side, where this channel makes possible for the insurers to access far reaching untapped markets simultaneously on the other side, it facilitates banks to earn handsome additional income (Brahmam et al., 2004). * Assistant Professor In Haryana School of Business, Guru Janbheshwer University of Science and Technology, Hisar, anju_gju@yahoo.com ** Junior Research Fellow in Haryana School of Business, Guru Janbheshwer University of Science and Technology, Hisar, renu.bala3@gmail.com

2 236 Anju Verma and Renu Bala A Brief History of Bancassurance In 1980 first time, bancassurance term was used in France, (Sinha, 2005, Maji and Dey, 2007, Artikis et al. 2008, Fiordelisi and Ricci, 2010). The success of bancassurance in France attracted the attention of banks and insurers, in other parts of Europe and rest of the World, (Bharti, 2004, Agarwal, 2004). In France, banking network accounts a significant share in selling the life insurance policies that is around 80 per cent of the total life insurance policies, (Maji and Dey, 2007). Potential of Bancassurance in India Economy As far as Indian economy is concerned, the bancassurance was unknown before the passage of IRDA Act, 1999, (Agarwal, 2004). Bancassurance stll is in nascent stage in India and expected to make brisk walk in near future, (The Insurance Times, 2003, Sinha, 2005) but implementation of this new concept is one of the most challenging tasks (Maji and Dey, 2007). At very first, insurance industry was doubtful about the success of bancassurance in India, but soon the insurance industry realized the need of selling insurance policies through banks. Consequently, eleven life and non life insurance companies had entered into tie-up with twenty one banks, (Pandey, 2004). In India, bancassurance accounted 22 per cent of the sale of private insurers (Gupta, 2006). Strong Indian Banking Network Banks are the key pillars of the Indian financial system. Public have immense faith in banks (Gupta, 2006, Revathy, 2007). Well functioning banks may increase the confidence of customers in other financial institutions and life insurers are the obvious example (Beck and Webb, 2003). India has more than 200 million middle class population, coupled with huge banking network with largest depositors base, that indicates the big scope for bancassurance (Neelamegam and Veni 2008). Public sector banks, especially regional rural banks and micro credit institutions with their wide reach can help to fulfill the basic objective of deep insurance penetration in India (IRDA, Annual Repot, ). In addition, banks may increase the utilization of resources, which would otherwise be idle. Indian Insurance Sector India has a well established banking infrastructure with wide network and huge customer base (Soni and Singh, 2003, Maji and Dey, 2007). From operational point of view, the infrastructure of banks can also be used to deliver the insurance products and vice versa, that will help to harness the unspoiled customer services (Okeahalam, 2008). After the establishment of IRDA (in 2000) and liberalization, the monopoly of the public sector insurers has broken up, that brought a stiff competition among the public and private insurers. Consequently, continuous improvement in efficiency and productivity has become first condition for insurers for their long term survival. Focusing on the critical success factors during the competition (product innovation, service quality and quality of distribution) insurers need to expand their markets rather to compete on the same customer base (Rao, 2008). Here, bancassurance can be witness of a vibrant future.

3 Scope for the Bancassurance in Indian Life Insurance Sector: An Analytical Approach 237 Untapped Indian Rural Market The real India is rural India and rural development is pre-requisite for economic development of India (Pandey, 2008) also support the same that India is mainly a rural economy (Jampala and Rao, 2005). Insurance deals with very basic need of human life that is security (Bhatt, 2005). Insurance is a system that enables a family, a business to transfer the losses over to insurer at the fixed cost in form of contract. Therefore, by doing this an insurer reduce the level of risk to the society as a whole (Bhattacharya, 2007). Indian economy, with more than one billion population, widely spread out large geographical area (Maji and Dey, 2007). Revathy (2007) explains various strong reasons for the success of bancassurance in India. First, rural and semi-urban areas are till date unmarked from the insurance service. (Karunagaran, 2006) supports the same by concluding that majority of population still remain outside the reach of insurance, especially in rural and semi-urban areas, that clearly indicates the potential for tapping the insurance market by widening the distribution channels and bancassurance could possibly prove more relevant in this situation. Asian Insurance post (2008) mentioned that the skilled and trained manpower is critical for the insurance industry. Revathy (2007) again supports that in India abundant of skilled professional in banks and insurers that can carry a successful bancassurance venture. Revathy, (2007) and Asian Insurance post (2008) suggest that setting up; new distribution channels in rural areas are very expensive for the insurers, particularly for small ones. Economic Survey ( ) clear the picture by explaining the IRDA provisions for the rural and social sector obligations, all private life insurers up to the 10 th financial year from their operations, are required to expand their rural coverage that is 7 per cent of the total written direct policies from 1 st financial year and to 20 per cent coverage in the 10 th financial year. All the above mentioned factors of Indian Economy direct the paper to find out all the favorable variables for the scope of bancassurance in Indian Economy. The paper proceeds in six sections. First section discusses the profile of bancassurance. Second section explains the review of literature. Third section describes the need of the study and its objective. Fourth section, explains the research methodology. The fifth section explains the analysis and interpretation of the data. The sixth section explains the result and discussion. Last section that is seventh section concludes the paper. II. LITERATURE REVIEW The literature review is being divided into two parts, where first part reviews the present situation of bancassurance in the world as well as in India and second part throws the light on challenges before Indian Economy during implementation process of this concept. Part (1) Present Situation of Bancassurance in World as well as in India White (1990) explained that the entry of banks in the insurance business marked a significant change in the financial industry. Reregulation in U. S. inculcates the immense freedom of services; exclusively the distribution of insurance products by banks. It will afford tremendous and equal opportunities both the sector banks as well as insurers. Both will get profit by widening their sources of income. Most important, insurer s powers and satisfaction of the customer will

4 238 Anju Verma and Renu Bala increase. Many studies, Brahmam et al. (2004), Bharti (2004), Reddy et al. (2004), Revathy (2007), Neelamegam and Veni (2008), Popli and Rao (2009) supported the same that if bancassurance correctly implements then it will be a win-win situation for insurers, banks and customers. The Insurance Times (2003) focused that in US and UK, bancassurance channel contributes around 40 per cent of the total insurance premium income of the insurers. Bharti (2004) found that bancassurance concept was generated in France and later it has been adopted in other European Countries. In France, 70 per cent in Portugal, 69 per cent and in Spain 63 per cent of the new business premium comes through banks. Brahmam et al. (2004), Okeahalam, (2008) focused that banks and insurers both would get more convenience and flexibility in payment modes, access to a portfolio of financial services under the single roof. This also can reduce premium prices in particular. Report of the committee on bancassurance (2011) concluded that the existence of a number of banking groups as promoters of insurance products have great significance of bancassurance model in India. Rao (1999) cleared that the spread of Indian life insurance business is negatively related to the proportion of rural population. Finally, indicated that life insurance remains primarily an urban bias business. Ranade and Ahuja (1999) found that in India, life insurance coverage is less than 7 per cent. In Singapore, it is around 45 per cent and in Japan it is close to 100 per cent. In U.S. it is more than 81 per cent households that have insurance coverage. Sinha (2002) point out that Malhotra Committee Report (1994) emphasized on the untapped Indian insurance market and recommended that insurance companies should pay their special attention towards the rural insurance business. Sattaiah and Gunaranjan (2005) found that in India before the insurers there is a major challenge to increase the awareness level among the rural population. Veeraian and Sreenu (2005) concluded that Indian rural markets are still untouched territories to a great extent that are offering exciting opportunities to the insurers and successful path, need to affordable schemes for the rural population. This study also focused that there is urgent need to insurers to enter into tie ups with other agencies. Agarwal (2004) concluded that the bancassurance concept would help to tap the huge rural masses of India. Rao (2006) mentioned that in new delivery channels, bancassurance is a revolutionized process to sell insurance products, with the wide banking network, especially, in rural areas, where insurance penetration is a matter of concern. Bhattacharya (2004) extracted that bancassurance channel is the most viable channel for marketing the insurance products, chiefly in rural area. Popli and Rao (2009) extracted that in India, after opening the insurance sector new opportunities have emerged for both the sectors, insurance as well as banking. Asia Insurance Post (2008) stated that after liberalization, the entry of new private insurers lead to new product innovations, network expansion and alternative distribution channels. In such environment, bancassurance is very successful phenomenon for insurance distribution, particularly for small and new insurers that can save huge investment expenditure for the network expansion, new untapped customer s acquisition and exploring new geography that they would have to bear otherwise. Boone and Bane (2008) concluded that bancassurance can prove a cost effective channel, for the insurers because of already established banking infrastructure and there is no need for new one. Kumar (2006) summarized that bancassurance concept in India is in its

5 Scope for the Bancassurance in Indian Life Insurance Sector: An Analytical Approach 239 emerging phase and it holds excellent promise in near future. Arora and Leach (2005) concluded that India has an extensive banking infrastructure that has branch recognition, credibility and profitable in customer operations. Ramachandran and Swaminathan (2004) explained that one of the objectives of banking policy after nationalization to expand the flow of credit to agriculture and small industries of India. Bhatt (2005) mentioned that no business can survive without insurance. Pathania and Sharma (2010) pointed out that Indian banking system is no longer confined to metropolitan cities or big towns but also catering the need of rural population even in remote areas. Soni and Singh (2003) pointed out that public sector banks and RRBs account 92 per cent of the bank branch network. This network includes 33,000 rural and 14,000 semi urban branches. Part (2) Challenges before Bancassurance in India Kumar (2004) and Singhvi and Bhatt (2008) found that cultural difference between the managers of bank and insurer can create difference in their thinking and business approaches. These differences can create communication and implementation problems in bancassurance operations. On that basis study, suggested that cultural difference must be understood and respected for the success of bancassurance venture. The development of culture integration is another alternative solution. Qaiser (2007) concluded that when a person is buying insurance in true sense; he is buying peace, but some issues can grasp this peace like, policy ambiguous language, delay in the claim settlement, uncertainty in the scope of risk coverage, consequently, both will suffer company market image as well as policyholder s faith. Revathy (2007) supported that good marketing strategies, great caution is needed at the time of policy selection. Qaiser (2007) suggested that bank staff-client relationships are very strong in small towns and these relationships can be maintained with proper training in this direction to the bank staff. Agarwal (2004) supported that bank staff will take time to adapt the new environment and same Kumar (2006) explains the urgent need for trained and trust worthy bank staff for customer satisfaction. Bharti (2004) and Gupta (2006) and Revathy (2007) suggested that commitment of the top level management, motivation and skill development at the operational level is crucial ingredient for the success of bancassurance venture. Bhattacharya (2005) pointed out that foreign insurers are expected to bring more funds, technology and management practices in insurance sector but this flow depends on the investor s perception about the financial health of an economy that is measured by the stability not only banking but also insurance and security market. III. NEED FOR THE STUDY Plethoras of studies are available on liberalization, privatization, efficiency and productivity of Indian banking and insurance sectors separately but the studies on both sectors are very few. This study will bridge the gap. The study explores that Indian Economy with its unique features, indicating a vibrant future for bancassurance venture in India. IV. OBJECTIVE OF THE STUDY Broad objective of the study is to investigate in Indian Economy the scope of bancassurance in Indian life insurance sector.

6 240 Anju Verma and Renu Bala V. METHODOLOGY The present study is exploratory cum analytical in nature that is purely based on secondary data. The data have been collected from various sources, Journals, RBI Reports and IRDA, Reports, Economic Surveys, web sites, text books and magazines, etc. The time period of the study is from The variables of the study are: per cent age of rural and urban population to the total Indian population, life insurance penetration and density, geographical distribution of the branches of the Indian banking sector and offices of the Indian life insurers, GDS and its components, GDP and literacy rate. The variables explanations are given on the basis, Census of India, IRDA, Annual Reports, respectively. The urban area included two types of towns (a) statutory town (b) census town, that are defined as: (a) all places with a municipality, corporation, cantonment board or notified town area committee, etc. (b) all other places which satisfied the following criteria: (1) a minimum population of 5,000 (2) at least 75 per cent of the males as main workers engaged in non-agricultural pursuits. (3) density of population of at least 400 per sq. km, respectively. The rural area defined all area that is not including as urban area. Life insurance penetration is defined as life insurance premium as a percentage of GDP and life insurance density is defined as life insurance premium to the total population. Statistical tools, tabulation, per cent age, comparison and growth rate have been used for the data analysis. VI. DATA ANALYSIS AND INTERPRETATION Table 1 International Comparison of Indian Life Insurance Penetration and Density (In 2010) Countries Parameters India China US UK France Germany Japan World Penetration (%) Density (US$) Source: IRDA, Annual Report, Table 1 indicates that in the year 2010 India with 55.7 US$ life insurance density is lagging behind from developed countries, US has US$, UK that has US$, France US$ and Japan with US$, world has US$. As far as life insurance penetration is concerned India with 4.4 per cent is much ahead of China that has 2.5 per cent, even from US and Germany both have same 3.5 per cent and rest of the world that has 4.0 per cent and lagging behind from UK that has 9.5 per cent, France has 7.4 and Japan has 8.0 per cent. Table 2 Market Share of Indian Life Insurers in Total Life Insurance Premium (In % age) Years Insurers LIC Private Total Source: IRDA, Annual Report, from to

7 Scope for the Bancassurance in Indian Life Insurance Sector: An Analytical Approach 241 Table 2 indicates that LIC market share is decreasing continuously after liberalization. In , LIC market share was per cent, that has reduced in up to per cent against the private life insurers, their market share in was 0.54 per cent that has increased in up to per cent. Table 3 Share of Indian Rural and Urban Population to total Population (In % age) Years Population Rural Urban Total Source: Census of India Table 3 shows that the urban population is increasing and rural population is going to decrease in Indian total population. In 1961 the rural and urban population share was and respectively. In the year 2011, Indian rural population share has decreased up to and the share of urban population has increased up to The gap between the rural and urban population is becoming narrow from the last every decade but still the per cent age of rural population is more than two times of the urban population. Table 4 Branches of the Indian Banking Sector in 2011 (In % age) Public Sector Banks Private Sector Banks Banks Scheduled Foreign Total Branches Commercial State Nationali- Total Old New Total Banks Banks bank zed Banks private private group banks banks Metro Urban Semiurban Rural Total Source: Authors Calculation. Table 4 shows that foreign banks in rural area have minimum branches per cent age 2.2 and in semi urban 2.5, total rural and semi urban is 4.7 and maximum per cent age that is 76.0 in metro cities. Public sector banks have maximum branches in rural area that is 32.8 and in semi urban areas 25.7 per cent age in total rural and semi urban area that is 68.5 and in metro cities it has 19.7 that is minimum in total public sector banks. New private sector banks have 8.6 branches in rural area and in semi urban area 30.5 that is in rural and semi urban area is 39.1 per cent. In total (new and old) private sector banks maximum attention is in semi urban areas with 32.9 rather than rural area that has minimum 11.3 in total semi urban and rural it is 44.2.

8 242 Anju Verma and Renu Bala Table 5 Distribution of Offices of Indian Life Insurers in 2011 (In % age) Insurers Offices Private LIC Total Metro Urban Semi-urban Others Total Others: is being considered as rural area on the logical basis by authors. Source: Source: Authors Calculation. Table 5 shows that public as well as private Indian life insurer s offices tendency is towards the rural area but LIC is more widely concentrated as compare to private insurers. In 2011, LIC offices maximum attention is in rural area with 44.3 offices following semi urban area with 28.3 offices and in total rural and semi urban area is 72.6 per cent. Private insures have opposite case with maximum attention in semi urban areas having 45.4 offices following in rural area 27.7 per cent and in total semi urban and rural area is Table 6 Economic Indicators of Indian Economy (At current market prices) Indicators GDP (in Rs Growth Components of Gross Domestic Savings Years crores) rate of Household sector Private Public GDS % GDP Financial Physical Total % of corporate Sector of GDP GDS sector Growth rate is calculated as value of current year value of previous year/value of previous year *100 Source: RBI, Annual Report and Economic Survey, Table 6 shows that in the FY , Gross Domestic Saving is 33.7 per cent of the GDP. In which 69.7 per cent is coming from the household sector that is much more than the private sector 8.1 and public sector 2.1. This is positive indication that the capacity to save is much more in the household sector than private and public sector. Table 7 Social Indicators of Indian Economy Years Indicators Population (million) Literacy Rate (%) Source: Census of India, 2001 and 2011.

9 Scope for the Bancassurance in Indian Life Insurance Sector: An Analytical Approach 243 Table 7 shows that in Indian Economy literacy rate is per cent age and population is million in VII. RESULT AND DOSCUSSION This study was set out to achieve the basic objective, scope for bacassurance in Indian life insurance sector. The conclusion is summarized according to the table s crux. Table 1concluded in international comparison, India is lagging behind in life insurance density not from developed countries but from china that is giving clear indication for vibrant future scope for the Indian life insurers. Table 2 shows that in post liberalization period, the market share of the private life insurers is increasing fast and LIC market share is decreasing continuously. But LIC is still a dominant player in the Indian life insurance market; competition for the market share between the LIC and private insurers is also guiding the insurers to concentrate in rural and semi urban areas. The table 5 clear that percentage distribution of the offices of private life insurer s and LIC in rural and semi urban areas is above than 70 per cent. It is clear indication that in near future for increasing the life insurance density and penetration, life insurers will find bancassurance is an appropriate channel in this direction. Table 4 shows that Indian banking sector that has more than 50 per cent branches in the semi urban and rural areas except the new private and foreign banks that have maximum concentration in metro cities. It is concluded that Indian public sector and old private sector banks have great hope for the tie up in semi urban and rural area. Table 3 shows that basically, Indian Economy is rural economy that holds per cent rural population of the total Indian population that is 2.2 times of the urban population. It is big indication the future potential in the untapped rural insurance market in Indian Economy. As far as India population is concerned table 7 shows that India total population is million is bigger size with literacy rate 74.04, life insurance density is low that is clear a positive indication for future growth for the life insurers. It should be worthwhile to mention here that planning commission target is to achieve 85 per cent literacy rate in the 12 th five year plan. If we talk, about the saving table 6 shows that in Indian household sector is contributing 69.7 per cent to the total Gross Domestic Savings. GDP growth rate is also double digits in FY it is 17.3 at the current market price. VIII. CONCLUSION In brief, after considering all factors, it is concluded that Indian economy where the young insurance sector is facing tough competition with wide banking sector that has a strong access to rural and semi urban areas, public sector banks, following by private sector banks. In such environment bancassurance has good hope for both sectors it would prove cost effective channel to increase the life insurance density and penetration. The path of success will depend how much both regulators (RBI and IRDA) understand each-other during the implement process

10 244 Anju Verma and Renu Bala and how much they are alive about the reality ground. Indian Economy, indeed has huge untapped rural and semi urban area but with lot of challenges. Acknowledgement The authors thank UGC for providing financial assistance in the form of junior research fellowship all through the research References Agrawal, A. (2003), Bancassurance: the Industry Scenario, The ICFAI University Press. Artikis, P. G., Mutenga, S. and Staikouras, S. K. (2008), A Practical Approach to Blend Insurance in the Banking Network, The Journal of Risk Finance, Vol. 9(2): Arora, S. S. and Leach, J. (2005), Towards Building an Inclusive Financial Sector: Lessons from South, Economic and Political Weekly, Vol. 40(17): Asia Insurane Post: A Reality Check, (2008), Vol. 9(3): Bharti, V. (2004), Bancassurance: A Paradigm Shift in Insurance Marketing, The Insurance Times, Vol. 24(10): Beck, T. and Webb, I. (2003), Economic, Demographic and Institutional Determinants of Life Insurance Consumption across Countries, The World Bank Economic Review, Vol. 17(1): Bhatt, S. (2005), Insurance Sector and Infrastructure Development-A viewpoint, Journal of I. T. and Management, Vol. 3(2): Bhattacharya, A. (2004), Bancassurance-Needs and Effects, The Insurance Times, Vol. 24 (10): Bhattacharya, A. (2005), Regulation of Insurance Industry, The Insurance Times, Vol. 25 (4): Bhattacharya, A. (2007), Actuary s Role in De-tariff Regime. The Insurance Times, Vol. 27(8): Boon, A. and Bane (2008), Polygamous Bancassurance, Insurance Chronical, The Icfai University Press, pp Brahmam, R., Irala, L. R. and Pulugundla, A. (2004), Bancassuarance in India Issues and Challenges, Available at SSRN: Vol. 04(01): 1-8. Fan, C. K. and Cheng, S. W. (2009), An Efficiency Comparison of Direct and Indirect Channels in Taiwan Insurance Marketing, Direct Marketing: An International Journal, Vol. 3(4): Fiordelisi, F. and Ricci, O. (2010), Efficiency in the Life Insurance Industry: What are the Efficiency Gains from Bancassurance? Available at SSRN: pp Gupta, M. K. (2006), Who/What drives Bancassurance in India? Paper presented in 7 th Asian Conference on Bancassurance and Alternative Channels, in Mumbai, on August, 29 th, pp Karunagaran, A. (2006), Bancassurance: A Feasible Strategy for Banks in India? Reserve Bank of India Occasional Papers, Vol. 27(3): Kumar, M. (2004), Marketing and Distribution Channels in Bancassurance, The Insurance Times, Vol. 24(4): Jampala, R. C. and Rao, B. H. V. (2005), Impact of Liberalization on Life Insurance Corporation, Insurance Chronicle, The ICFAI University Press, Vol. 5(1-5): Kumar, V. V. Ravi (2006), Bancassurance in India-An Emerging Concept, Insurance Chronical, The icfai University Press, pp

11 Scope for the Bancassurance in Indian Life Insurance Sector: An Analytical Approach 245 Maji, S. G. and Dey, S. (2007), Bancassurance: An Indian Scenario, The Insurance Times, Vol. 27(2): Neelamegam, R. and Veni, K. P. (2008), Bancassurance An Emerging Concept in India, The Journal, Okeahalam, C. C. (2008), Does Bancassurance Reduce the Price of Financial Service Products? Published online: 10 (April), Springer Science + Business Media, LLC, 33: Pandey, K. C. (2004), Insurance Sector: Changing With Time, The Management Accountant, Vol. 39(1-5): Pandey, M. (2008), Micro Financing: A Blessing for the Poor-A Case Study of Eastern Uttar Pradesh, The Indian Journal of Commerce, Vol. 16 (3). Pathania, K. S. and Sharma, M. (2010), Adoption of Banking Technologies, The Indian Journal of Commerce, Vol. 63(3): Popli, G. S. and Rao, D. N. (2009), An Empirical Study of Bancassuarance: Prospects and Challenges for selling Insurance Products through Banks in India, Available at SSRN: pp Qaiser, R. (2007), General Insurance Policy Wordings: Issues and Concerns in Liberalized De-tariff Regime. The Insurance Times, Vol. 27(7): Ramachandran, V. K. and Swaminathan, M. (2004), Financial Liberalization and Rural Banking in India. Paper presented at the International Conference, on The Agrarian Constraint and Poverty Reduction: Macroeconomic Lessons for Africa, on December, 17-19, pp Rao, T. (1999), Life Insurance Business in India: Analysis of Performance, Economic and Political Weekly, Vol. 34(31): Rao, T. S. R. K. (2006), Private Insurers Come of Age, Insurance Chronical, The ICFAI University Press, Vol. 6(4): Rao, M. V. S. S. (2008), Dynamics of Business Equation in Life Insurance Sector: An Empirical Study, Management and Change, Vol. 12(2): Ranade and Ahuja (1999), Life Insurance in India: Emerging Issues. Economic and Political Weekly, Money, Banking and Finance, Vol. 34(¾): Reddy, C. S., Reddy, P. M. and Reddy, C. S. (2004), Liberalization of Insurance: Opportunities and Challenges, The Insurance Times, Vol. 24(3): Revathy, B. (2007), Bancassurance-Taking the Lead, The Insurance Times, Vol. 27(10): Sattaiah, D. and Gunarajan, P. S. (2005), New Frontiers in Indian Insurance: Rural Insurance, Insurance Chronicle, The ICFAI University Press, Vol. 4(Issue 1): Sethi, N. (2011), Bancassurance-An Emerging Concept in India, pp Singhvi N. and Bhatt, P. (2008), Distribution Channels in Life Insurance, Bimaquest, Vol. 8(1): Sinha, T. (2002), Privatization of the Insurance Market in India: From the British Raj to Swarj, Centre for Risk and Insurance Studies, CSIR Discussion Paper Series-2002.X. website: Sinha, T. (2004), Insurance Sector in India: Towards the 2020 Vision. Version 3.1, (March), pp Sinha, T. (2005), Bancassurance in India: Who is Tying the Knot and Why? Available at SSRN: abstract=15203, pp Soni. P. and Singh, R. (2003), Insurance Marketing in India: The Critical Success Factors, The Insurance Times, Vol. 23(10).

12 246 Anju Verma and Renu Bala Veeraiah, P. and Sreenu, I. S. (2005), Strategies for Improving Rural Insurance Business in India. The Insurance Times, Vol. 25 (4). Bancassurance 2003, The Insurance Times, Vol. 23(12): 19. White, M. D. 1990, Bancassurance in the U.S. and Abroad, pp IRDA, Annual Report, , pp. 96 and IRDA, Report of the committee on Bancassurance, 7 th July, Census of India, 15 th July, Economic Survey,

13

14