Customers’ Perception Regarding Reliability of Bancassurance Channel: An Empirical Study

Abstract

Following deregulation and globalization era, Bancassurance has evolved as a strong distribution channel in India. Bancassurance basically involves banks acting as corporate agents for insurers to distribute insurance products. The present study attempts to analyze customers‟ perception with respect to reliability in buying insurance from banks and impact of various demographic variables on customers‟ perception regarding reliability of bancassurance channel. The study is based on the primary data collected from the customers buying life insurance policies of SBI Life Insurance Company Limited through State Bank of India in Guwahati city of Assam. The data is collected using structured questionnaire. Cronbach‟s alpha is used to test the reliability of the questionnaire. Other statistical tools like Mean, Standard Deviation, and Crammer V test are used to arrive at suitable conclusion. The study finds that customers have high reliability in bancassurance channel for procuring insurance service. It is also found in the study that among the demographic variables considered, marital status, family income and family size of customers has significant impact on their perception regarding reliability of bancassurance channel.