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Bancassurance turns nightmare as bankers face pressure to sell insurance products
February 23, 2023
Bank executives, especially from public sector banks (PSBs), are facing immense pressure from top management to sell third-party products like insurance. Failure to meet targets invites informal penal actions while meeting targets brings perks such as parties in five-star resorts, several bankers told Moneycontrol on the condition of anonymity.
Banks typically cross-sell insurance products of their subsidiaries, and sometimes of other companies, along with loan products. Many times banks insist purchase of policies along with loan products.
While this has been the case for a long, of late the pressure has grown manifold on mid-level bank executives who typically do not speak in the open fearing the wrath of senior colleagues, said the bank executives. Moneycontrol spoke to at least five executives across six banks. None of them wanted to be identified citing the sensitivity of the matter.
“We are forcefully imposed to sell insurance products, despite the fact that we are bankers, we have become agents of insurance companies,” said a manager-level employee of the Bank of Baroda on the condition of anonymity. “In the last 1-2 years’ core banking work has disturbed badly as our workforce was involved more in selling insurance products,” said the official.
Important Links:
- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://tscfm.org/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/
