WoW that is amazing, right? banks become brokers, so what is in it for you?

Well, er, sorry, but NOTHING. Really, nothing.

Ok, do you know how a shop sells cell phone connections? – 99% of the customers will not care whether they buy a Bharti Airtel, Tata, Reliance….so the shop keeper sells the ones where he makes the most..when he is selling handsets.

So a bank will call all the 15 life insurance companies and negotiate. Negotiate real hard. So the life insurance companies who do not have any bank promoter will go for negotiations. Commissions will vary – let me stay out of saying anything. Do not want a libel suit, but the figure can go as high as you wish to imagine. And please be damn imaginative. Think of a number. Er gulp. Gulp again.

Now when a customer walks in he will be sold a ULIP. ….obviously.

Soon you will find TV programs and websites saying ‘ULIP is not that bad afterall…’ or something to that effect. And ULIPs will roar. People unhappy with this arrangement HAVE to be Hdfc, Icici, Kotak, Sbi,…

However Hdfc life insurance will suddenly be able to use the thousands of the Icici bank – and vice versa.

Who are the beneficiaries?

Employees – suddenly there will be demand for the life insurance sales guys

Banks- all life insurance companies will make a bee line to ensure that they become brokers

Airline seats: dramatic travelling across the country to ‘convince’ banks to sell will ensure a fantastic no. of seat sales

Trainers: Banks will be responsible for the sale – thus there will have to be a lot of documentation to PROVE that the client knew what he was doing. Tough, but do able training. Any banker interested? hey I can do this training pretty good.

Employees currently working with small brokers or small agents themselves will also be in good demand for the next 3 years.

Actuaries – not sure if IRDA says ‘who can sell’ andΒ  ‘who is the person responsible’…..

watch this is going to be interesting….btw any banker reading this…welcome!


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  1. Few thoughts of mine.

    IRDA disclaimer: You can be looted if you enter the bank premises.

    Green signal by Govt for day light robbery.

    HDFC bank and HDFC life would merge to rename the title as HDFC life bank.

    ICICI lombard would henceforth be bombard.

  2. Dear Sir,

    Being an insurance agent myself – let me tell you that nobody is interested in selling ULIP anymore because the commission in only 6% to 8%..I earn the 3 times by selling TERM PLAN (24%)..Dont know why you bring up this ULIP scenario all the time?? what about TRADITIONAL policies sold by LIC without any BANK?? Please enlighten everybody on this blog as to how much commission is there on JEEVAN ANANDs and JEEVAN SARALs for LIC agents..

    And yes, i am yet to see even 1 person (Yes sir, even a single individual) who has run his ULIP for 10 to 12 years and say that he is in losses despite the charges of the earlier ULIP..

  3. and Dhawal no clue which company and at what level of sales u are. I KNOW of products with a zero attached to the number that u have used…

    if u tell me Term Plan has 25% commission, great…but when the premium is Rs. 6000, 25% is not much, eh?

    sure traditional plans have 40% commissions and it will continue. THIS IS EXACTLY WHAT the smarter agents are selling by telling the clients ‘Sir this is NOT ULIP’.

    You are selling Term? why not the cheapest term? because agents can only sell what they have…right?

  4. Ppl stopped buying ULIP’s, bcoz they saw website like subramoney or listened to advise but simply after paying 3 premiums they themselves realised they got conned. So experience TEACHES πŸ™‚

    & now-a-days no body is buying even traditional plans. Everybody is INVESTING in real-estate which is even taking care of their 80c portion too [Actually it’s that no amount is left to INVEST after paying monthly EMI πŸ™‚ ]

  5. Subra, would like to know what do you if a you have an assignment to train the relationship managers/private bankers for boosting sales of fee based products.

  6. Bank people do sell ULIPS . Mr. Dhaval-many well known banks like HDFC Bank, Kotak Mahindra Bank etc.

  7. I am a banker, working with one of the largest pvt bank… insurance is the bread and butter to survive in the banking industry .. so no comments.. good article… keep up the good work. in between let the bankers survive too … πŸ™‚ i am a regular reader of your blog

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