The Impact of Bancassurance Practice on Financial Performance of Insurance Companies in Sri Lanka

Abstract

Bancassuarance is a channel of distribution of insurance products through banks. A number of insurers have already tied up with banks and some banks have already flagged of bancassuarance through soft launches of select risk products. Bancassurance has been gain blooming sector in the Sri Lankan insurance market. This study carried out to understand the position of bancassuarance players. It also aims to analyze the impact of bancassuarance practice on financial performance of insurance companies in Sri Lanka. The researcher used develops model (based on literature) and insurance companies, which are, practice bancassuarance as a distribution channel considered as a sample. The researcher has utilized both primary and secondary data and questioners in order to gather primary data from the sample. The results shows that dimensions of bancassarance practice impact on financial performance positively most contributory dimension towards financial performance is productivity per branch. Finally researcher highlights value added strategies to use in bancassurance practice.