With health insurance you end up selling every year since health insurance goes up with age. In life insurance customer commits to a single premium or regular annual payment for 7-10 years. Sell a single premium policy and you get the fat commission to meet your monthly revenue target.
Life insurance is a product that gets clubbed with investment, customers do not see it as a pure expense. Banks don’t sell too many pure life cover plans for this reason. With health insurance, it is seen as a pure play expense since there is no return expected on this. This is a much tougher proposition to sell for the average privilege banker who hardly has 2-3 years experience.
Banks may sell but they will prioritize life insurance over health insurance any day. Life insurance is also a much bigger market annually that is general insurance. ICICI Lombard has GDPI of ~16,000 Cr annually while SBI Life does more than that every quarter because of the higher renewal premium component.
Subscribe To Our Free Newsletter |