Bancassurance can promote financial reincarnation, robust economic growth globally: Prof. Mathur

Rourkela: Banking and insurance needs re-birth globally for any nation's economic development which will make their path of development robust to claim the status of a developed country, said Dr. S K Mathur, Professor, Institute of Public Enterprise, Hyderabad.

He added that concept of Bancassurance in the country is just emerging and is in fact, another distribution channel.

Speaking on “Global Financial Reincarnation through Bancassurance” at the 2nd International Seminar held here today at IIPM-School of Management, Kansbahal, a unit of Indian Institute for Production Management, Prof. Mathur said the term first appeared in France after 1980 to define the sale of insurance through banks. “India has high saving rate and huge insurance potential. Banks are major players in the financial sector. Complementarily between banking and insurance products require their customers to insure themselves against some standard risk. Various insurance services, offered via bank insurance channels are characterized by the nature of protection they intend to deliver. Consumer oriented products are built on the premise of ethics as they speak to transfer risk away,” he added.

He also said that focusing on nation's development, sustainable rapid insurance growth in the coming years, robustness economic growth prospects and nation's high saving rates is highly needed to mark ourselves in the world as the largest economy holder than it was positioned at number 12. Now adding as India being the second most populous country in the world and every individual should contribute largely towards insurance and banking sector, said Prof. Mathur who was the Chief Guest on the inaugural function of the big event.

Prof. Niranjan Nayak, director of IIPM, Kansbahal spoke about the evolution of insurance sector, market dynamics and incentives to Bancassurance, bank insurance products, bank insurance ventures and its mode of entries to dominate the market practices, benefits to insurance companies with involvement in Bancassurance, benefits to customers on greater access to all financial services from a bank that offers both banking and insurance products and lastly on benefits to legislators by Bancassurance in finance.

On the occasion, Sunil Srivastava, Head, Learning and Deveopment and TQM, Vedanta Aluminium Ltd. spoke vividly on the importance of Bancassurance and high need of it in our country adding regarding the bank insurance sale, the position of France is 70 per cent in comparison to India at 30 per cent due to which when the head of the family die at France, the family members became richer but in India when the head of the family dies, the members became street beggars.

The guests of honours such as Trinath Behera, GM, Railway Finance Corporation, Prof. Ranjan Kumar Bal, Finance Department, Utkal University, Kareem Angela Bent, Asst. Credit Manager, Business Deve Corp., Jamaica and Ochoche Peter, scientific officer, Federal Ministry of Scie & Tec, Nigeria also spoke on the topic.

Later the director of Kansbahal presented memento to the dignitaries on the dais. This apart, a souvenir clipped with seminar proceedings was also released by the guests.

The first technical session witnessed academicians from the country and abroad who presented papers on the topic Bancassurance in Finance.

Master of ceremony of the whole event was made by Navdeep Kaur and Nisa Sharma while Sasmita Giri proposed the vote of thanks.

Among others, delegates, speakers, faculties from country and abroad, industry captains, students and staffs of IIPM were present on the occasion.