An Impact of Bancassurance in Life Insurance Domain of Pakistan : A Quantitative Study through Structural Equation Model (SEM)

Lack of understanding about life insurance in public is due to lack of availability of new schemes and models of insurance selling and low income which causes low priority for life insurance. Bancassurance is the most significant approach for life insurance sector in Pakistan. A Joint venture between banks and Insurers that meet the requirements of customer financial needs and retain the client for long term financial relation with insurers which increase profitability for insurers and achieve significant economic development in Banking as well as Pakistan’s insurance domain. The technique used in this research is quantitative technique and the Four hundred respondents were selected as a size of sample among the population of customers with life insurance policies through distinctive channel of Bancassurance distribution. This is an exploratory study that is the reason the sampling procedure utilized for this exploration is suitable and advantageous to learn the hypotheses approximation. In order to achieve large scale consumer through traditional insurance in relationship marketing, bancassurance is a hope for life insurance sector to achieve goals in consumer services with a reputable channel where banks can help to retain this relationship with their service marketing through the window of consumer banking. Life insurance sector achieve its market goals through channel of Bancassurance and Banks gain tax free revenue from life insurance sector that increase their profitability in consumer services. Through the channel of Bancassurance, Banks and insurers builds an institutional advantage to attract their customers through different life insurance products