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’ and ‘who is the person responsible’…..
watch this space..it is going to be interesting….btw any banker reading this…welcome!
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