Contributor For Private Players The Bancassurance Key - June 30,2008

The insurance sector has seen a exceptional growth over the past few years. In 2007-08, growth in premiums was over 40 per cent. Many private players are rising at rates above 70 per cent. Insurance premium collections have reached 4.1 per cent of the GDP. Growth in life insurance premiums still comes primarily via the efforts of individual agents. But another channel that is fast emerging as a substantial source of premium income is bancassurance - especially for private life insurers. Bancassurance currently gives close to 35 per cent of the premium collected by private players. In 2006-07, that figure was about 17 per cent.