Insurance Companies Vs Commercial Banks

Quibit · 1 Insurance Companies Vs Commercial Banks Sun Aug 10, 2014 7:51 pm

Quibit

Senior Vice President - Equity Analytics

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Deposits Ve Premium.

Maturity:
Bank Deposit- 5 Years
Life Insurance: 25 Years.

Rate:
Bank - TB Rate + 1%
Insurance Companies: Bank Rate - 2%

Repayment
Bank: Guaranteed
Insurance: Depend on the underwriting agreement

Which Company would make more Profits? Bank or the Insurance Company?

Sstar · 2 Re: Insurance Companies Vs Commercial Banks Sun Aug 10, 2014 9:08 pm

Sstar

Vice President - Equity Analytics

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Insurance Brokers get 1st Years Premium as the Commission for getting a Life Insurance Policy, whilst Banks Deposit Marketers gets maximum 1% commission for getting a Bank deposits.

kkronline · 3 Re: Insurance Companies Vs Commercial Banks Sun Aug 10, 2014 9:42 pm

kkronline

Equity Analytic

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Insurance Companies which is having good Market share are good buys provided Good management. Because People pays premium on front and claims are honored later. So they have access to Free fund and can be invested wisely. it can give good returns. But dont forget Good trustable management only can do better use of money.
Banks are backbone of economy. so any country is having good GDP, Banks are great buy. But during downtime, their NPA shoots up and more write off will happen.