Surjendu Kuila, Co-founder & CEO, Zopper

Surjendu is a first-generation entrepreneur who has raised over $120 million to build India’s largest tech-enabled insurance distribution platform. With a strong background in SaaS and deep tech, he is passionate about innovation and invests as an angel in startups aligned with his expertise. Outside of work, he has a keen interest in deep space, military history, and sports.

The bancassurance market in India is experiencing substantial growth, projected to reach USD 180.1 billion by 2033 with a CAGR of 5.85% between 2025 and 2033. This growth is fueled by increased insurance penetration, government support, and advancements in Insurtech.

Bancassurance is today a natural complement to a bank’s core activities, and with the help of technology and AI, insurers and insurtechs can effectively cater to customer needs. Bancassurance’s prowess has benefited end customers, enabling banks to increase sales volumes in insurance distribution. A joint analysis by Swiss Re Institute, Sigma Research and BCG found that the Bancassurance channel was more profitable for insurers than traditional policy distribution techniques. Notably, bancassurance is more profitable than insurance, which is significantly more profitable than banking.

Let’s delve deep into some of the aspects where bancassurance has potentially supported the larger customer base and economy:

Forging Stronger Financial Alliances

From Product Push to Purpose-Driven Partnership, Bancassurance is no longer just selling insurance products. Today, bancassurance partnerships are the norm rather than the exception, with many companies willing to fork out huge sums for exclusive access to a bank’s extensive customer base and distribution network. Enhancing partner enablement for improved customer targeting is a prerequisite for effective product adaptation. While varieties of high-premium products, such as high-net-worth (HNW) life and health insurance, as well as forex-denominated or offshore arrangements, are critical for priority / private banking segments, microinsurance (P&C, health) is crucial for the emerging mass market in the developing world. These three interrelated shaping forces will drive the transformation of bancassurance towards deeper integration.

Banks are no longer providing only one-set products. Before the pandemic, banks were known to distribute only savings products; however, in the last decade, there has been a paradigm shift from selling products to being the ‘ultimate financial advisors' or being a comprehensive manager of economic well-being to the end customer. 

Bancassurance is today a natural complement to a bank’s core activities, and with the help of technology and AI, insurers and insurtechs can effectively cater to customer needs.

Digitalisation of Operations

A key benefit of digitalisation is catering to the need for immediacy among tech-savvy customers. In the age of one-day delivery, insurance without real-time response to customer queries is a recipe for failure. Insurtech enables real-time access and analysis of user data, which can be leveraged in IoT-based and other offerings to accommodate customers’ coverage needs in real-time. Insurtech leverages the cutting-edge approach of open banking to empower banks to improve their insurance offerings. Tech-powered insurance solutions serve as catalysts for change, enabling banks to enhance their insurance offerings and drive growth.

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Personalised and Context-Specific Offerings

Insurtech providers enable banks to collaborate with pure-play insurers and leverage overall customer data. This offers a ‘unified view’ of customers’ coverage needs, financial behaviours and insurance preferences. Banks can develop more targeted policies to address the specific needs of their customers. For instance, a car purchase could be accompanied by auto insurance or a ride-sharing insurance while booking a cab. Insurance solutions equipped with data analytics enable banks to identify specific needs and buying patterns, which increases the chances of a sale.

Collated user data also enables banks to bundle diverse products by discovering cross-selling opportunities. Banks can sell more without overwhelming the customer. For instance, a woman’s purchase of a prenatal care package indicates an upcoming opportunity for a pregnancy protection rider in addition to health coverage. Noticing and responding to emerging needs can strengthen brand-customer relationships and improve customer satisfaction.

Customer-Centric Innovation

Bank and insurance operations have undergone a seismic shift in moving away from one-size-fits-all products. Instead of static customer segments, insurtech empowers banks to create dynamic and flexible customer segments. Insurtech also integrates IoT to offer usage-based insurance solutions, such as lower premiums for patrons who remain physically active throughout the day.

Insurtech providers pave the way for humanoids a virtual workforce. These AI-powered assistants support customers through self-service portals. Leveraging NLP has enabled voice-triggered client engagement, query resolution and claim initiation. Bancassurance has set a new benchmark for hyper-interactive services that offer human-like experiences.

One of the newer innovations driven by insurtech, incorporated within insurance solutions, is blockchain-based smart contracts. Smart contracts instil transparency and accountability, which builds trust among customers and fraud resilience in insurance operations. Gamified applications, on the other hand, help improve insurance awareness and encourage healthier lifestyles by offering incentives, such as lower premiums or low-cost riders. They may utilise IoT devices for this purpose. Insurtech serves as the connecting medium to facilitate the seamless integration of diverse technologies.

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Conclusion

Bancassurance in India is no longer just a sales channel it’s a dynamic ecosystem where banking, insurance, and technology converge. As digital tools and customer expectations evolve, this model is poised to redefine financial inclusion and advisory, making protection more accessible, personalised, and seamlessly integrated into everyday banking.