B.K.
BIRLA COLLEGE OF ARTS, SCIENCE AND COMMERCE (AUTONOMOUS),
KALYAN
MASTER OF COMMERCE [M.COM] PART II
(Banking & Finance) SEM IV
(2021-22)
A Synopsis on
"Experience and Satisfaction of Bancassurance Customers A Study on State
Bank of India"
Submitted to,
B.K. BIRLA COLLEGE OF ARTS, SCIENCE AND COMMERCE (AUTONOMOUS),
KALYAN
Name of Student:
Abhijeet Chandrasen Kalkhair
Roll No. 32
Student ID: 41758
Email ID: Abhijeetkalkhair30@gmail.com
Under the Guidance of
Dr Anuradha.C.Hastak
INDEX
1. Introduction
2. Literature Review
3. Importance and Significance of the Study.
4. Objectives of the Study
5. Hypotheses.
6. Research Methodology
(a) Primary Data
(b) Secondary Data
(c) Sampling Methods and Sample size
7. Expected Contribution (Scope and Utility)
8. Chapter Scheme
Chapter No. 1. Introduction
Chapter No. 2. Review of Literature
Chapter No. 3. Hypothesis
Chapter No. 4. Research Methodology
Chapter No. 5. Data Analysis
Chapter No. 6. Conclusion
Bibliography
Appendix
Sign of the Student Sign of Supervisor
1. Introduction
The concept is implied by the phrase bancassurance. Bancassurance is a mixture of two terms,
‘bank’ and ‘insurance’. This is a business concept in which a bank distributes insurance firms'
products through a distribution channel established by the bank. Bancassurance is a combination
of banking and insurance industry. In this arrangement bank sells the insurance plans along with
a comprehensive range of banking and financial goods and services to its current customer base.
The insurance firm profits from selling its goods to a bigger client base without having to pay
broker commission, which helps to enhance the company's sales by giving such companies
greater market exposure. The bank, on the other hand, gains from the increased money generated
by selling the insurance product of the affiliated insurance firm.
The bank's major purpose in the bancassurance arrangement is to act as a middleman for selling
the insurance company's insurance product and assisting the firm in achieving a big client base
and improving its market reach.
Bancassurance has also been the topic of numerous debates over the years, with many opponents
stating that such a structure gives banks too much power over the finance industry and should
thus be avoided. A few governments have also prohibited bancassurance in order to achieve this
goal. Nonetheless, it has not slowed the global expansion of bancassurance.
Spain and France were the first to see the emergence of bancassurance. It first appeared in India
in the year 2000, with State Bank of India serving as the forerunner. The State Bank of India
(SBI) established a joint venture collaboration with Cardif SA on December 28, 2000 the third
largest insurance firm in France. The consequence is the foundation of SBI Life, the first
bancassurance company in India.
From the perspective of the consumer, bancassurance has both advantages and downsides. On
the bright side, getting insurance from the bank is convenient. This is especially true in small
towns where insurance brokers are few, however this is less common now that insurance is
commonly available online. That convenience may also inspire more customers who need life
insurance to acquire some.
On the other side, the simplicity of purchasing insurance at the bank may discourage customers
from looking around for the best deal. In addition, there is considerable debate about how
qualified bank personnel are to advise consumers on their insurance needs, as opposed to
insurance agents and brokers who specialize in the sector.
2. Review of Literature
1. Grewal et al. (2009) investigated the elements influencing customer experiences in retail
banking and underlined the importance of service delivery and service quality in shaping
customer experiences
2. Backstrom and Johansson (2006) found that friendliness of the bank workers, their expertise
and understanding about the products and services offered, as well as a nice and welcoming
branch atmosphere, might contribute to an increased customer experience. The layout and style
of the branch have a considerable influence on the customer experience.
3. Ng (2002) discovers that physical aspects of a retail establishment, such as layout and
background music, impact customers' experiences
4. (Laukkanen, 2007; Yap et al., 2010; Ioannou and Zolkiewski, 2009) Various channels may
be employed for effective and smooth service delivery, with the goal of broadening the dialogue
and deepening the relationship between the adviser and the banking customer, hence increasing
the customer experience.
5. Ramathe (2010) discovered that previous experiences, brand, and pricing influence customer
experiences in retail banking
6. Accenture (2013) In their analysis finds that in today’s commodities, insurance market,
customer experience has become one of the principal of difference in the business. Delivering a
great and unique customer experience promotes profitability by decreasing expenses, boosting
retention and gaining a higher share of wallet.
3. Importance and Significance of Study
The banking sector in India presently functions in a more competitive climate than ever before.
Creating new clients and maintaining old ones has become tough for banks in the changing
climate. Banks have engaged into agreements with insurance companies to offer their products in
order to suit the various requirements and wants of their clients and to boost their profits. This
creates new problems as well as possibilities both for the banks and clients. The services that
clients receive from their insurance firms are also evolving. It is mostly due to the new
middleman, which is a bank rather than two agents. The insurance business has been expanding
at a noteworthy rate, and Bancassurance has expanded substantially throughout this time.
Because of the rising economy, banking, and insurance sectors, bancassurance offers enormous
economic potential for banks and insurance businesses, and it has Shukla, R. K., Bhatt, P., and
Shrivastava, S. (2012) discovered in their study that customers who purchased insurance policies
from banks were more happy with more tailored services. In light of this, the experience of
customers, their perception of customers, and their level of satisfaction with this new mode of
getting insurance in lieu of the insurance service provided by agents must be studied in order to
gain a better understanding and draw appropriate policies in this regard.
4. Objectives of the study
The following aims are taken into account in this study:
1. To investigate the experiences of consumers who have used State Bank of India's life-
insurance services in the research region.
2. To learn about the attitudes of consumers who use State Bank of India's life insurance services
in Kalyan
3. To assess the degree of satisfaction of Bancassurance clients of State Bank of India in Kalyan.
4. To study the awareness level of customers regarding banks selling insurance products.
5. To study the factors affecting buying behaviour of customers in purchasing the insurance
policies through the banks
6. To compare the type of policies customers purchase from the banks.
7. To compare the satisfaction level of customers purchasing insurance policies through banks in
different cities
8. To analyse the future buying pattern of the customers for insurance policies
5. Hypothesis
H0: The services of SBI Bank is not the key factor in choosing insurance from the Bank
H1: The services of SBI Bank is the key factor in choosing insurance from the Bank
6. Research Methodology
The study which is being carried out is basically depending on the two major important statistical
sources which are mentioned below: -
1. Primary Data
The data which have been used in this research that is both primary as well as secondary data
which are perfectly being used to fulfil the objectives and for providing hypothesis. The primary
data that has been collected till now has been done by using the questionnaire method which is
being asked to people of various age groups from adults to older men and women having
experience in bancassurance.
2. Secondary Data
The secondary data that has been used in this research is mentioned below in pointers
1. Internet source
2. Official documents source
3. Data gathered from various articles
6.1 Material and methods
Study area: The research is conducted for the customers who has taken insurance from SBI
Sample size: Total 100 responses will be covered in this research.
Sampling technique: The questionnaire method will be used with essential questions that will put
the research in the right direction
Data collection procedure: The data will be collected through google forms and will be sent to
respective residents that can give information for the research.
6.2 Data Analysis
Simple statistical and latest statistical techniques will be used for the analysis of data as per the
response received through the questionnaire method.
6.3 Limitations of the study
Even though the study can be useful in various form of ways both for bank employees and HR it
still has limitations.
1. The sample size can be broader and can target a larger audience
2. Respondents can be dishonest and might not give proper information.
3. With the restricted amount of time the research might ignore various aspects that may be
important.
4. In the present study, only the insurance services supplied by the SBI will be investigated and
insurance company specific services will not be included.
5. The present analysis analyses those consumers who have acquired Insurance Policy from State
Bank of India. As a result, the findings cannot be applied to other insurance firms' Bancassurance
channels.
6. The survey was done in Kalyan city of Maharashtra. As a result, the study's findings cannot be
applied to other geographical regions.
7. Expected Contribution
The contribution to the study will help to understand the experience that the customers shared
during bancassurance of SBI Bank considering different branches in Kalyan City.
8. Chapter Scheme
The present study is classified into five chapters for neat and clear presentation.
The Chapter-I introduces the online banking and its usage and advantages, objectives of the
study and its need and significance
The Chapter – II presents the review of literature.
The Chapter – III Research Methodology discusses about the sources of data collected for the
study and the material and methods used in the study.
The Chapter – IV analyses the data collected with the use of questionnaire from the
respondents. The Chapter – V deals with the summary of findings, suggestions and conclusion.
Bibliography
Mascarenhas, O. A. (2006). Lasting customer loyalty: a total customer experience approach. Journal of
Consumer Marketing, 387-405.
Mousumi Choudhury, R. S. (2016). Measuring Customer Experience in Bancassurance: An emerical
study. Preliminary communication, 28, 47-62.
Sharma, V. C. (2012). Customers’ awareness towards banking services: a study of urban areas of
Uttrakhand. South Asian Journal of Marketing and Management research. Uttrakhand.
Shukla, R. B. (2007). Customer Satisfaction and Role of Channel Intermediaries in Life Insurance services:
a comparative study.
Varma, R. T. (2012). Enhancing and empowering: customer experience. SCMS Journal of Indian
Management, 71-78.
QUESTIONS
1. Age of the respondents?
o 18-25
o 26-35
o 36- 50
o 50-60
2. Gender of the respondents?
o Male
o Female
o Other
3. What is your profession?
o Business
o Services
o Student
o Other
4. What is your annual income?
o Rs 1-5 Lakhs
o Rs 5-10 Lakhs
o Rs 10-15 Lakhs
o More than 15 Lakhs
5. Are you aware about your bank selling Insurance?
o Yes
o No
6. Sources from which you got knowledge about bancassurance?
o Media
o Company officials
o Bank officials
o Friends/Relatives
o Agents
7.Have you purchased any policy through your banks?
o Yes
o No
8.Is there any reason for not purchasing insurance policy from banks?
o Do not have knowledge about Banks selling Insurance
o I am satisfied with my agent
o The processing time will be too long
o There will be difficulty in claim settlement
o My agent gives me extra discounts
o Banks sell tied insurance products
9. Types of policy being purchased?
o Life insurance
o General insurance
o Both
10. Different aspects that made you purchase insurance from SBI Bank?
o Convenience
o Location
o Trust
o Brand Image
o Professionalism
o Commitment
11. Level of satisfaction among respondents on different aspect of purchasing bancassurance
from SBI Bank (Range one to five)?
o Explanation of Policy Details
o I receive Timely intimation of Payments due
o I receive Updated information about my policy
o Behaviour of staff
o Proper explanation and details being provided by bank
o Timely disbursement of benefits
12. Level of difficulty you faced while getting insurance from Bank? (Range one to five)
o Policy Document
o Premium Payment
o Complaint Attending
o Claim Settlement
o Loan Against Policy
o Recontinuation of Lapsed Policy
13. Will you keep buying insurance policy from SBI Bank?
o Definitely will not
o Probably will not
o Can't say
o Probably will
o Definite will
14. Reason for keep using insurance provided by SBI Bank?
o I am tired from my agent’s services
o I can trust my bank
o The Bank understands my needs and my financial position better.
o It is easy to pay premium through banks
o The Bank gives excellent services
