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BANCASSURANCE

BANCASSURANCE | JAIIB NOV STUDY MATERIAL | JAIIB NOV EXAM 2022

This article focuses on an important topic of the LRAB NOV 2022 EXAM  i.e, Bancassurance This article deals with all the aspects of Bancassurance. Towards the end of the article, we will discuss the JAIIB LRAB NOV 2022 STUDY MATERIAL.

JAIIB NOV 2022

Junior Associate of Indian Institute of Bankers is referred to as JAIIB. The JAIIB exam is held twice a year, in May and November, by IIBF.

JAIIB is a (flagship course) Associate examination offered by IIBF that is only open to regular Institute members.

The JAIIB exam seeks to provide the fundamental information needed for performing day-to-day banking operations in the areas of banking and financial services, banking technology, customer relations, basic accountancy, and legal concerns.

WHAT DOES BANCASSURANCE MEAN?

Bancassurance is a partnership between a bank and an insurance provider that enables the insurance provider to market to the bank’s clientele. Both businesses may benefit from this cooperation. By selling insurance goods, banks increase their earnings, while insurance companies grow their clientele without hiring more salespeople.

A bancassurance agreement is advantageous to both businesses. In addition to interest revenue, the insurance business pays the bank a fee amount (non-interest income), and in exchange, the insurance company expands its customer base. To grow its market share, the bank serves as an intermediary by assisting the insurance company in reaching its target consumer.

Read Also: JAIIB NOVEMBER EXAM 2022 | SCHEDULE OF LIVE CLASSES

NEED OF BANCASSURANCE

The following factors have contributed to the expansion of Bancassurance as a distribution method:

  • Fee-based revenue: By maximizing the use of its resources and infrastructure, establishing itself as a one-stop shop with value-added services for its clients, and enhancing customer loyalty and retention, a bank intends to increase its fee-based income and overall productivity. With the help of bancassurance, a bank can meet the clients’ needs for risk management without having to take on underwriting risk.
  • Fund Management: The global insurance premium for life insurance is around 55% of all insurance premiums. It is one of the strategies for raising bank deposits. Through the same channel of distribution and with the same individuals, both life and non-life insurance businesses provide banks with an extra flow of float funds in addition to fee-based income.
  • An environment favorable: Laws governing banks’ ability to operate insurance businesses have been gradually repealed. Additionally, automation and the use of electronic channels have increased. Additionally, the demand for private retirement plans to supplement public pensions has grown.
  • Cost-effectiveness: Insurance companies view bancassurance as a more affordable alternative to pricey agency services for distribution. According to estimates, distribution costs account for 50% of the insurers’ overall cost structure.

BANCASSURANCE MODELS

Different business models for banking are used in various nations, as seen below:

  • Distribution agreements: In their simplest form, referred to as “connected agents,” bank employees solely offer one insurer’s products, either on a stand-alone basis or when packaged with bank products.
  • Joint venture: To create a potent new distribution model, a sizable bank with a strong customer database joins up with a sizable insurer with extensive product and channel expertise. Alternatively, a bank and an insurance firm can settle on having joint shares to split the earnings.
  • Financial Services Group: As part of increased integration between banks and insurers, either an insurer or a bank may create or acquire another bank.
  • Strategic alliance: This type of investment by a bank in the insurance industry entails a higher level of participation in product creation, service delivery, and channel management without any associated contingent liabilities.

Therefore, banks could partner with insurance providers by acting as a distributor, strategic investors, joint venture developers, or promoters, among other roles. Most actions involving bancassurance fit into the first model.


Read Also: IIBF JAIIB LRAB BEST STUDY MATERIAL 2022

BENEFITS OF BANCASSURANCE

  • BENEFITS FOR BANKS
    • There is an increase in staff productivity.
    • Customers’ total satisfaction can be raised, leading to higher levels of customer retention, by offering both services under one roof.
    • Gaining fee income from the sale of insurance products will increase the return on assets. (Minimum financial outlay and “No” hazards.)
    • Production of extra earnings
    • Employee motivation will be aided by financial and other incentives.
    • The marketing function of the bank will benefit from the “Tough” effective and efficient sales and marketing culture.
    • Retaining “current” clients and gaining “new” ones.
  • BENEFITS FOR INSURERS
    • Increased sales creation.
    • Growth of profits.
    • Extra money for investing.
    • Possibility of increasing income by being able to market bank products to clientele.
    • The chance to earn more money and provide their clients and prospects with more options will inspire the sales force.
    • retaining “Existing” clients and gaining “New” ones.
    • The bank’s “Good” culture will benefit the life insurance company.

Read Also: JAIIB EXAM NOVEMBER 2022 NOTIFICATION

JAIIB LRAB NOV 2022 STUDY MATERIAL

The JAIIB 2022 Exam consists of a total of 3 papers or subjects that must be studied. Specifically, Paper 1: Principles and Practices of Banking (PPB); Paper 2: Accounting and Finance for Bankers (AFB); and Paper 3: Legal and Regulatory Aspects of Banking (LRAB).

You may read all about the study material for LRAB, Paper 3 of the 2022 JAIIB, in this article.

  • The learning process is facilitated and studying is made much more convenient when we have access to all the study materials in one location.
  • We provide you access to the JAIIB Best Study Material available on the market. The entire IIBF-recommended JAIIB Syllabus for 2022 will be covered
  • Your time for preparation is greatly reduced by this pre-made material because you don’t need to go elsewhere to learn about various topics on the internet.
  • You will be able to get clarity and a fundamental grasp of the topics with the aid of appropriate and pertinent study material provided by us for the LRAB Nov 2022 exam of the JAIIB 2022. Your academic success in Legal & Regulatory Aspects of Banking will be improved by the pertinent study material for JAIIB 2022 LRAB.
  • Video lectures-You only need to watch the video lectures and read the brief notes to review the material. Instead of only using lectures that have already been published or recorded, the JAIIB’s LRAB course also provides live  video lectures. Additionally, watching the videos is beneficial because what is heard and seen is more memorable than what can simply be read. Video lectures therefore offer a better comprehension of the subjects.
  • Mock tests: In order to prepare for the Legal & Regulatory Aspects of Banking paper, you will also receive the mock tests for the JAIIB 2022 LRAB paper. You will benefit greatly from taking these tests while you prepare for the JAIIB NOV 2022 EXAM. There would be no time limit on how long it would take to complete the LRAB assessments because they are just intended for practising accounting and finance principles.
  • Recording: In addition to the live lectures for the 2022 LRAB, you will also receive the recorded lectures for the 2022 LRAB live lectures for viewing at a later time after more than 48 hours. If you happen to miss any live lectures for the LRAB Course, you can watch the lectures later with the use of these  recordings.https://youtu.be/SLPhNk7ht3E

     

  • REVISION NOTES: We at Learningsessions provide revision notes in our study material package. These notes are Short and crisp compiled from all the points covered in live lectures/recordings. These notes help the candidates in last-minute preparation before the exam where you don’t need the whole syllabus but just heading and must-know pointers.

Read Also: JAIIB Mock Tests & Previous Year Questions | JAIIB NOV 2022

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