Level of Awareness Regarding Bancassurance and Choice of Insurance Product among Bank Customers in India
Keywords:Banks, Insurance, Ordered Response Probit Model, Structural Equations Modeling
The study endeavors to analyze the effect of awareness level regarding bancassurance among the bank customers on choice of Insurance product in India. A primary survey of 552 bank customers, who have purchased bancassurance, reveals the following facts using ordered response Probit analysis: i) regardless of the present efforts of the banks, the expected level of awareness among the customers of banks regarding bancassurance is either partial or significant; ii) the expected probability of complete awareness is very low; iii) the banking sector needs to improve upon the level of awareness regarding bancassurance among their customers and the factors like frequency of dealing with bank customers, bank brochures and other publications may prove to be helpful; and iv) the reasons because of which, three sources of information namely, Newspapers, Bank Staff and Direct Mail are failing to spread complete information regarding bancassurance among customers of the banks are needed to be analyzed. However, an execution of structural equations model rejects the hypothesis of insignificant effect of level of awareness on choice of insurance product in weak form.