Context: The Insurance Regulatory and Development Authority (IRDAI) aims to boost Bancassurance to achieve 'Insurance for all' by 2047.

What is Bancassurance?

• Definition: Partnership between banks and insurance companies, allowing direct insurance product offers to bank customers.
• Benefits: Better market access and cost efficiency.
• Challenges: Potential mis-selling, requiring IRDAI's consumer protection measures.

Importance:

• Widening the Safety Net:
• Current Status: 60-70% of Indians are uninsured (National Insurance Academy).
• Solution: Bancassurance leverages bank customer bases.
• Customised Solutions:
• Tailored insurance products, such as health insurance for account holders.
• Simpler Sales Process:
• Smoother sales due to established bank-customer relationships.
• Streamlined underwriting and KYC reduce costs and risks.
• Holistic Approach:
• Integrates insurance into overall financial planning for better customer experience.