*Finance Minister Urges Banks to Review Insurance Sales Practices* In a recent address at an SBI event, Finance Minister Nirmala Sitharaman emphasized the need for banks to reassess their insurance sales practices. *Key Highlights:* - Mis-selling of insurance products raises customer costs and concerns - Bancassurance model has contributed to increased insurance penetration, but also instances of mis-selling - Banks must prioritize transparency, ethical practices, and clear communication - Ensure customers are not burdened with unnecessary insurance products *FM Sitharaman's Quote:* "Banks will have to look at it with a lot more emphasis on their core banking activities and not burden customers with insurance which they don't require." #insurance #bancassurance #mis-selling #customerprotection #bankingreforms #financialinclusion #transparency
Sanjeev Jain
1mo
Will IRDAI frame guidelines to strengthen consumer protection in bancassurance, addressing FM Nirmala Sitharaman's call for transparency, ethical practices, and clear communication?
Shilpa Arora
1mo
So glad that this is being addressed
Param Srivastava
1mo
Sir, It all lies with the big corporates itself.. the way sales people are pressurized to get business It will lead to mis selling. The combine effort of bank and corporates to create more awareness will bring down mis selling..even in banks the product is not sold right away. Having patience in getting business instead of pounding upon the sales people to get business will set the banca channel towards the right path..
When incentives from cross sale become higher than the salary a banker gets , why should one concentrate on core activity? 😀😀 Go for loan or account opening or locker ; you will be slapped with insurance or mutual fund or credit card, etc. service you do not need. 😔😔 In fact, banking obligation is being discharged just to facilitate non Bank sales. Preaching by FM will be practised only if the statutory process is laid down where no incentive will go to the account of the employee, not even company sponsored foreign tours.
Kamlesh Kumar
1mo
Maximum chunk of business is coming from banca model.. It will definitely help to increase the penetration level. But we should develop the mechanism of selling the product in a right way with right manner. I have discussed with so many bankers rather than pitching it in its true intent they think they are combining with some other products which lead to misselling of the product.
Nikhil Bharadwaj
1mo
Focus on training bank personnel and having more specified persons in place who are trained to sell insurance. Banks are invaluable for increasing penetration of insurance.
Ramesh Kumar
1mo
There is a scope to limit the mis selling in insurance products in the bancassurance channel. It was the government which imposed such conditions to increase the penetration of insurance among the customers. Instead of asking the banks not to miss sell, the FM can reduce the GST on the premiums to increase the penetration from the present level and make the insurance products more affordable.
Ganesh Kumar
1mo
You don't know how the senior management in banks pressures the employees to sell insurance to customer even they don't need it they will give hour to hour call to update the status even terminate the employees and put the employees to PIP process
IRDAI,GM (Retd.) Telegram : irdaicircle
1moIRDAI Chairman: "You do not have to run after customers, you have to give them an option. I believe there is merit in the system (bank distribution), but we have to do it with caution so that you don't forget your activity and start selling only insurance. It should be incidental -" + but who will bell the cat +