Banks jolted by record fraud to boost insurance sales

Experts say the recent frauds mean that more insurance cover for banks will come with higher costs

The top insurance broker in India sees an opportunity to increase sales to the nation's banks reeling under a string of recent frauds.

Marsh & McLennan Cos. predicts the premium pool for insurance against fraud, robbery and other losses at Indian banks will climb as lenders bolster protection. The local unit of the New York-based company is seeing a 30 per cent jump in inquiries from Indian banks, with some seeking to double their cover.

Cover for banks forms a minuscule revenue source for brokers and insurers — annual premium payments total about Rs 1 billion ($15 million) — as lenders would