Bancassurance has steadily evolved from a niche distribution channel to one of the most influential avenues for insurance in India. Over the past decade, it has transformed not only how insurance products are sold but also how clients perceive and access them. Its blend of bank credibility and insurance expertise has created opportunities for professionals to serve clients more efficiently while ensuring trust and convenience. Ravi Rajpal, a 20-year MDRT member sheds light on how bancassurance has reshaped his practice and why it has become an essential growth tool.  

When Rajpal first explored bancassurance, he saw a channel brimming with potential. The introduction of open-architecture corporate agency norms in 2016 enabled banks to partner with multiple insurers, creating competition and diversity that improved product offerings, pricing and client service. The regulatory reforms by Insurance Regulatory and Development Authority (IRDAI) between 2022 and 2024 further enhanced product flexibility, advertising standards and policyholder protection. “These changes didn’t just benefit the insurance industry, they directly impacted how I serve my clients,” recalls Rajpal.  

He further shares, “I chose to embrace bancassurance because it allowed me to reach a curated audience through trusted bank branches, reducing acquisition costs and increasing client engagement. Over the years, I have observed private insurers report that over 50% of their Annualized Premium Equivalent (APE) comes from bancassurance. For me, it became a reliable platform to offer a variety of products efficiently, leveraging the trust banks have built over decades.” 

Rajpal believes the advantages of bancassurance for his practice are manifold. “First, access to a curated pool of Know Your Customer (KYC)-verified clients with transaction histories, income data, and risk profiles allows me to provide tailored advice. I can match solutions with their real needs, enhancing the underwriting process and overall satisfaction. The bank’s credibility reduces client acquisition effort, while systems such as UPI AutoPay improve persistency rates, ensuring clients remaincovered over the long term,” he explains.  

Moreover, bancassurance opens doors for product innovation. He has also had the opportunity to co-create products for salaried professionals and Micro, Small, and Medium Enterprises (MSMEs), tailoring offerings to the precise needs of these segments. This influence over product design ensures clients receive solutions that are relevant, simple and effective — a luxury often absent in traditional agency channels. 

Rajpal notes, “Of course, challenges exist. One key hurdle I faced was ensuring product suitability and preventing mis-selling. For instance, a client was once sold a health plan that didn’t align with his risk appetite. To address this, I implemented rigorous needs analysis processes, documented all interactions and conducted audio-logged suitability checks. Additionally, I worked with insurer nodal officers to set up joint claims helpdesks, and these helped to streamline after-sales support and enhance client satisfaction.” 

Prioritizing client needs remains central to Rajpal’s approach. Even in a bank-led distribution model, he conducts a thorough Financial Needs Analysis (FNA) for every client and records the rationale behind each recommendation in the Client Relationship Management (CRM) system. He only sells Product Management Committee-approved products backed by plain-language Key Fact Documents. His team’s performance metrics are tied to persistency, claims experience, and complaint-free sales, rather than just volumes. He also conducts proactive welcome calls and post-sale audits to ensure clients fully understand and are satisfied with their policies.  

He explains, “Innovation in bancassurance has been a driving force for adoption. For example, cyber-fraud covers embedded in bank apps and debit cards, offering ₹50k–₹1L coverage, saw rapid uptake among clients. Simplified savings-cum-protection plans digitally offered through Relationship Managers also became hugely popular at the company I’m working with, contributing to the company achieving 53% of their individual APE through bancassurance in FY 2023-24. These products resonate because they are simple, accessible and easy to understand, which is a crucial factor for first-time buyers.” 

“Regulation, too, has shaped the channel positively. IRDAI and Reserve Bank of India (RBI) guidelines on policyholder protection, data privacy and transparent marketing have strengthened client trust. I now ensure explicit opt-ins, clear disclosures and responsible marketing practices, which not only protect clients but enhance my credibility. Banning Unit Linked Insurance Plans (ULIPs) being marketed solely as investments forced me to reassess sales approaches, ensuring alignment with client expectations,” Rajpal says.   

Looking beyond metropolises, he sees enormous potential for bancassurance in Tier 2 and Tier 3 cities. Thanks to Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts, business continuity networks, and greater mobile adoption, clients in these areas are increasingly accessing insurance products. Rajpal has personally seen an uptake of accident and health covers in smaller cities, facilitated by digital platforms and WhatsApp-based servicing. As IRDAI penetration remains low, he reckons these markets are likely to drive bancassurance growth in the coming years. 

Digital banking and fintech collaborations are redefining the future of bancassurance. Digital tools such as UPI AutoPay, DigiLocker and CKYC streamline onboarding and policy management. Event-based offers and bundled products are becoming the norm, while digital marketplace platforms such as Bima Sugam reduce turnaround times and improve client experience. “In my practice, these innovations already allow me to provide a seamless, client-centric journey, ensuring policies are renewed automatically and clients remain satisfied without friction,” he says.  

In Rajpal’s experience, bancassurance is no longer just an alternative channel, it is a powerful engine of growth, efficiency and client trust. By combining banking reach, regulatory support and digital innovation, it allows him to serve his clients better while creating solutions that truly fit their needs. In his experience, embracing bancassurance isn’t just smart, it’s essential for long-term success. 

Contact: MDRTeditorial@teamlewis.com