Commercial banks can have 35 per cent of insurers' premium

Kolkata, Dec 12 (UNI) Commercial banks might contribute about 35 per cent of private insurers' premium income by 2008, a study by Watson Wyatt, a leading financial services consulting firm, said here today.

The first of its kind survey in the Indian market 2006-07 stated that about 30 per cent of the life insurers predict that by 2010 rural insuarnace would constitute between 16-20 per cent of their total bancassurance new business premium.

The survey, in which 25 banks had participated, stated that 90 per cent insurers were expecting 75 per cent in new business premium income for the current fiscal from bancassuarnce.

Many of them predicted that overall share of bancassurance would be about 50 per cent or more in the life segment in the year 2010.

However, 10 per cent of the non-life insurers predicted bancassurance share of more than 50 per cent by 2010, while the majority forecast was for 30 per cent.

Watson Managing Director(Distribution Practise) R Krishnamurthy said the banks should address short falls of the potential in the insurance market.

UNI