As we have noticed many banks are now entering into Insurance business. Why are Banks entering into this sector particularly when many insurance companies are already there in India ?
(A) By providing insurance products banks are earning additional revenue in terms of fee/commission.
(B) Banks with their huge customer base are leveraging on their existing relationship to convert customers into policyholders.
(C) With increase of health related problems, everybody wants an insurance cover no matter how big or small it is. Banks are coming up with many attractive offers, which are also affordable.