A Study of Banks Service Effectiveness as Shaping the Demand for Bancassurance Products in India
Authors: Dua Puja , Dua Dhruv 
Published: July 2023

Purpose: The objective of the research is to explore and map the relationship between service effectiveness, quality, and the demand for bank assurance in a particular geographic area, with the aim of providing valuable insights for both banks and insurers operating in that market.

 

Theoretical framework: Recent literature has provided explicit data about the concerned research that explains about bank service effectiveness as shaping the demand for bancassurance products in India. However, there is still much to investigate and learn about bancassurance products in India, because it is a recent development.

Design/Methodology/Approach: The research employs a multi-stage sampling technique to select the sample. To collect data, a stratified random sampling method is used, incorporating a snowball sampling approach. Initially, respondents are targeted through a pilot study. A structured questionnaire is then distributed to a subset of the intended sample population to assess the suitability of the responses in obtaining the necessary information for the subsequent survey questions. The results supported the hypothesis that “Service effectiveness of bancassurance services provided by the retail bank’s branches significantly influences the financial inclusion” The path coefficient indicating the relationship between service effectiveness and financial inclusion is found to be 0.546 which is also significant at 5 % level of significance. Since the path coefficient is positive thus indicating a positive impact on the service effectiveness on the financial inclusion. The R square of the financial inclusion is found to be 29.8 % indicating that the service effectiveness is able to explain the 29.8% of the variance of financial inclusion. Four-fifth (80%) of the sample consists of men and the entire population belongs to the economically weaker section of the society. This provides a comprehensive set of sample populations with the scope of gender and economic disparities being measured in their role in determining the choices of bank customers in accessing financial services.

 

Findings: Bancassurance identifies as an institutional and organized way out for the marketing of insurance through the established bank branch network. The bancassurance gives banks the plentiful chance to acquire additional income floods of pay, and gains hazard-free pay from such units while advancing clients’ steadfastness and maintenance. The research concluded that constructs in measurement model measuring service quality of the bancassurance services provided by the retail bank branches has composite reliability of above 0.70 (access = 0.896, Financial Inclusion =0.880, responsive- ness=0.862, empathy=0.843, Tangibility = 0.824, price=0.813, assurance=0.766, and reliability=0.754).

 

 Research, Practical & Social implications:  The practical implications of this research lie in its ability to inform strategic decision-making, improve service quality, drive innovation, and promote financial inclusion. From a social perspective, the study contributes to increased financial protection, accessibility, and economic growth, ultimately benefiting both individuals and the broader society in India.

 

Originality/Value: The originality and value of this research lie in its focused examination of the relationship between banks' service effectiveness and the demand for bancassurance products in the specific context of India. By offering insights and practical implications for the industry, the study contributes to both academic literature and the strategic decision-making process of practitioners in the bancassurance sector.