Here is the data from the IRDA Annual Report 2021 –
Within Life Insurance – Individual segment
LIC gets 93% NBP from agents
Private Insurers get 54% NBP from banks
Within Health Insurance as a segment
Banks bring in just 8% of the individual premium
Agents bring in 74% of the individual premium
Banks bring in 12% of the group premium
Brokers like Marsh, Aon Hewitt bring in 45% of the group premium
Overall market size –
Life Insurance premium for FY21 – 6,28,000 Cr
Life Private sector premium for FY21 – 2,25,000 Cr
Health Insurance premium for FY21 – 63,700 Cr
Health (private + standalone health) premium for FY21 – 35,000 Cr
Banks bring in ~1,20,000 Cr p.a. premium for private life insurers
Banks bring in hardly 3,500 Cr p.a premium for private health insurers at best
That is a ratio of 34:1 at the premium level, now translate this into fee income for the bank
Also divide this by the number of branches to get branch level throughput
Then divide that number by 3 to get per privilege banker throughput
Then evaluate one time sale effort Vs annual sales effort for Life insurance Vs Health insurance
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