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Gauri Loganathan, Chennai
The Future group has pioneered the concept of mallassurance in India — selling its own insurance products through its own malls, Big Bazaar. Mallassurance is akin to bancassurance wherein banking and insurance services are offered under the same roof. It was born in France where banks conveniently combined banking services with insurance, giving rise to considerable savings in costs and greater productivity of employees.
The synergy between the two services has been questioned by the cynics, but others acknowledge that given proper training, a banking specialist can acquire insurance skills and vice-versa.
Sometimes a bank acts as a sales agent for an insurance company. Corporation Bank in which LIC has got a 26 per cent stake, sells the latter's products at its branches.
Cynics might be even more sceptical about mallassurance given the fact that while the blue-collar sales personnel at malls may be able to push a wide range of products of day-to-day use, they may not measure up to the more demanding task of selling insurance products calling for considerable white-collar skills.
But then Big Bazaar boasts a 5-6 per cent contribution from insurance products which is not a small feat given the fierce competition in the insurance sector.
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