Hello and welcome to exampundit. Here is a letter for UIIC AO 2016 Descriptive on the subject "How Banks and Insurance Cos can help each other".
Received your letter yesterday, I came to know that you are representing a seminar on ‘how banks and insurance companies in india can help each other’. I am glad to write you to state my views on this topic which can help you to prepare your seminar.
Banks has more capital, more no. of customers and more staffs than the insurance company, therefore, insurance companies can utilize bank resources to promote insurance products. It can also termed as bancassurance. This has been proved beneficial to both banks and insurance companies, as both can earn more profit since the banks get their commission for selling the insurance products and in the same way the insurance companies get the wide spread networking of their branches.
The broadening of bank’s product range makes the bank more attractive and can reinforce customer satisfaction and therefore strengthen the long term client relationship. Besides, such schemes reduce the cost of marketing, so that both bank and the insurance company can get benefit. An insurance company can establish itself more quickly in a new market, using bank’s existing network. It also benefitted customers, as it saves their time, while they get all the financial services through a single window or ‘one stop one shop’.
In this way, both banks and insurance companies have been experiencing the positive impact from bancassurance practices.
Hope these points will help you to prepare your seminar. Give my regard to all at home.