As a facilitator: An intermediary to life/non-life insurer/s; as an intermediary to one's own insurance operation. HongKong Bank, for instance, has had the distinction of being largest `agent' not only for its insurance company (erstwhile `Carlingford') but also the largest insurance intermediary in Hong Kong. In contrast to the above two, a passive role as it does today. Globally, the trend has been towards convergence of all financial services. Banking, insurance, mutual funds, building societies are all coming under one roof. The repeal of the Glass-Steagall Act will see removal of all regulatory/ legislative walls between insurance, commercial banking and investment banking in the USA.

While non-life industry continued to be fed by the banks, the life stream dried up. If insurance has not been sold but bought and yet grown, it is thanks to the banks (and latterly financial institutions) that it has been bought. The all pervasiveness of banks et al in commerce ought to be accepted.

Also to be recognised is the fact that the "bank-push factor" has become single largest engine of growth for commercial insurance segment. Most of the less spoken non-traditional lines, essentially social in nature, viz, livestock insurance, were also spurred by such "push".

Motor, the other major power-house for growth of the Indian general insurance industry has also had a mentor in the banking industry. Though in a limited way. In the process what did the banks achieve? Essentially a collateral in lieu of risk-transfer mechanism. What perhaps could be a fallout of the IRDA Bill and suitable amendments of the Banking Regulation Act? A commission income for this catalyst role.

While banks will continue to play a dominant role in facilitating commercial insurance business, what is most likely to happen (either as an intermediary or a risk carrier) coupled with advancements in technology is pace-setting for personal lines business.

The reasons: E-commerce. The sale of goods and services over the Internet. Experience from developed economies like UK reveal that insurance industry, even in those markets, has been rather slow to capitalise on the Internet's potential as a distribution channel. There are of course exceptions. The general conclusion; insurance is the least forward thinking banks are more aggressive. But the discerning are inclined to view banks as transaction-based and insurance as information-based.

Homogeneous, commoditised policies such as household contents and motor insurance are currently the most commonly sold policies over the Internet, overseas. Some insurers are also experimenting with the sale of commercial covers. While insurers, it is felt, are just beginning to move beyond `brochure-ware' - consumers are often bound to contrast them with other financial service providers who generally satisfy their `sophisticated palates'.

According to Forrester Research, sales of ordinary motor, home and life insurance will account for just 2 per cent of the overall market for these lines in 2003. What are likely implications for the Indian market?