Home insurance in India rises at over 10%

Mortgage lenders are pestering borrowers to sign up home insurance to avoid property threats, thereby driving penetration levels up
Many people confuse home loan with home insurance. Home insurance is totally a different league. Home insurances shrink the level of your property risk. They are the defender to your property. God’s forbid if any awful incident happens to your property apart from any natural catastrophe the insurance company will repay the damage cost entirely. There are leading private companies available in our times which have different types of home insurances as per your accommodation. Presently most of these private companies are selling their financial products through banking channels which is commonly known as bancassurance channel. During these past few years home insurance industries have seen merely 2% growth or so, but surprisingly they are rolling over above 10% of escalation with large amount of business coming from different bancassurance channels mostly. This giant blot hasn’t come from the blues all of a sudden. This is happening due to the mortgage lenders are pressing borrowers to avail home insurance for minimizing their asset risk. For this huge leap as arrived.

Bancassurance has different models for selling such insurance. 1. Strategic Model- Under this model bank sells policies tying up with the insurance companies, but in this case bank only does the marketing portion on behalf of insurance companies, rather than this no other financial activities are performed by the bank. 2. Full Integration Model- Under this model bank sells insurance products under bank’s own brand and will provide monetary solution matching to the customer requirement. 3. Mixed Model- In this particular section insurance company performs the marketing and bank is in charge for generating the leads only. This approach needs limited amount of technical revenue as well.
At a press release Tata AIG General Insurance and Co. declared that they get on an average 6000-7000 selling of their insurance, which means in a year approximately 85000 policies are being expected to be sold from the banking partners. Business from an individual level is also turning out, from a fewer class of people who want to insure their residential/commercial properties, but the major retailing of (near about 95%) insurance is drawing from bancassurance as the banks mandate insurance as a pre-requisite. As an obvious outcome bigger realty projects are popping up and subsequently the selling proportion of home insurance is marching up. Realtors are taking home insurance to safeguard the massive investment of the promoters, and this coverage straight way goes to the building society on completion.  Building society obtains insurance for the entire construction of the structure of the building, the individual insurance of several flats also become elementary once there is that opening gulp. Being a trusted property portal in Kolkata ,Liyans suggests to all our realtor friends and individuals please go by each term and condition and most importantly the interest rates offered by different companies and invest the sum according to your basic requirement.



No comments:

Post a Comment