Bancassurance Manager

Bank insurance sell" refers to Bancassurance, where banks sell insurance products (life, health, etc.) to their customers, often earning high commissions, which has led to regulatory concerns and issues with mis-selling, especially with in-house products, prompting stricter guidelines and complaints mechanisms like the Banking Ombudsman in India. Banks partner with insurers (like J Insurance) to offer these products through bank staff as sales points, but regulators (like IRDAI) are cracking down on conflicts of interest and unfair practices. How it works (Bancassurance)Partnership: A bank and an insurance company form a relationship.Distribution: Bank employees (tellers, Relationship Managers) become the point of sale for insurance policies.Products: Banks sell various policies, often from their group companies (e.g., SBI Life). Key issues and concernsHigh Commissions: Banks earn significant commissions (up to 65-70%) on first-year premiums, incentivizing sales over customer suitability.Mis-selling: High-pressure sales tactics lead to customers buying unsuitable or unnecessary products, sometimes with manipulated details, to meet targets.Conflict of Interest: Selling in-house products can prioritize bank profits over the best product for the customer. Regulatory response (India)RBI & IRDAI: The Reserve Bank of India (RBI) and Insurance Regulatory and Development Authority (IRDAI) are increasing scrutiny.New Guidelines: Proposed changes (like in the Insurance Bill 2025) aim to limit commissions, mandate clear disclosures, and stop board-level conflicts of interest.Action: Strict action is promised against mis-selling, with complaints handled via mechanisms like the Banking Ombudsman. What you should doBe Vigilant: Understand the policy fully, especially if it's linked to a loan or bundled with other products.Complain: If mis-sold, use the Banking Ombudsman. 5 common mis-selling traps: How banks profit at your expense and ...14 Sept 2025 — Commissions earned by selling in-house group products Banks typically sell life insurance policies offered by their ow...The Economic TimesPSU banks earn 15% higher commission from selling insurance, MF ...12 Jun 2025 — The country's largest state-owned bank, State Bank of India (SBI), earned the most from insurance broking, agency and b...MoneycontrolBanks now liable for mis-selling insurance: Here is how to complain ...4 Sept 2017 — Banking Ombudsman: Banks now liable for mis-selling insurance: Here is how to complain to banking ombudsman - The Econo...The Economic TimesShow all