Your SlideShare is downloading. ×
0
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Bancassurance Marketing
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Bancassurance Marketing

14,783

Published on

Published in: Business, Economy & Finance
20 Comments
24 Likes
Statistics
Notes
No Downloads
Views
Total Views
14,783
On Slideshare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
19
Comments
20
Likes
24
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Bancassurance Huge Potential for Growth…… Strategic Bancassurance Forum April 12-13, 2010 Gulf Hotel, Bahrain Ashish Kaushik Manager Bancassurance Bajaj Allianz Life Insurance, India
  • 2. “There is no stronger force than an idea whose time has come.” Victor Hugo (19th Century French Novelist) Banks & Insurers across the World have realized Bancassurance is the distribution channel, which would help them achieve economies of scale and boost their revenues in the 21st Century
  • 3. Consideration for Banks… 1. Increase in Fee Based Income 6. Provide integrated financial services tailored to 2. Reduce reliance on the life cycle of customers interest spreads as the major 16 2/3 % 1 source of income 16 6 % 2/3 2 16 2/3 % 16 2/3 % 16 2/3 % 3 5 3. Leverage extensive customer base 16 2/3 % 5. Reduce risk based capital 4 req. for the same level of revenue 4. One stop shop for all Financial Services
  • 4. BANCASSURANCE US Market 2008 Non Interest Income/ total revenues (%) Median Net Change in net Number Of Median Net Number Of Banks Income with income with Banks with Asset Size Banks Income ($ m ) with Insurance Insurance($ m ) insurance (%) All Banks Insurance Over $10 bn 89 93.37 65 93.37 0 32 32 $1 bn - $ 10 bn 470 8.73 267 10.7 23 20 22 $ 500 mn- $ 1 bn 632 3.88 331 4.78 23 18 20 $ 250 mn- $ 500 mn 1128 2.06 539 2.75 33 16 18 under $ 250 mn 5343 0.47 2136 0.83 76 13 15 All 7563 0.69 3338 1.16 69 14 17 Source: Bank Insurance Market Research Group The median income for banks with insurance selling operations is significantly higher than banks which don’t sell insurance.
  • 5. Consideration for Insurers… Immediate access to New Markets Improve sales Increase in Market effectiveness & after sales Penetration service Insurer Reduce reliance on Develop new financial traditional distribution products more efficiently channel Combine Cost Saving & Increased Profitability
  • 6. Key Success Factors… Commitment of Partners Motivation Selection of & Selection Customer Training of Bank Staff of Partner Segments Sales & Product Distribution Offerings Model
  • 7. Customer Segmentation A good segmentation must be realistic, easy to implement, simple to explain and, above all … insure success in every effort made
  • 8. Bancassurance - Distribution Model • Integrative / Generalist Model • Specialist Model • Financial Planning Model 36
  • 9. Bancassurance - Distribution Model • Integrative / Generalist Model – Product distribution through existing bank channel – Bankers themselves sells the product to customer – Process managed by banks and insurer act as only product/service provider e.g. Telemarketing, direct mail 37
  • 10. Bancassurance - Distribution Model • Specialist Model – Distributes insurance product through generally employees or representatives of the insurance company – Bankers help to identify the prospects who further contacted by insurance professionals – Requires less training and higher compensation to support the referral process – It lengthens the process of sale 38
  • 11. Bancassurance - Distribution Model • Specialist Model – Distributes insurance product through generally employees or representatives of the insurance company – Bankers help to identify the prospects who further contacted by insurance professionals – Requires less training and higher compensation to support the referral process – It lengthens the process of sale 39
  • 12. Bancassurance - Distribution channels • Career Agents • Special Advisers • Salaried Agents • Bank Employees / Platform Banking • Corporate Agencies and Brokerage Firms • Direct Response • Internet • e-Brokerage • Outside Lead Generating Techniques 40
  • 13. 10 Success Factors • Leverage Multiple Channels for Distribution » Branches, Sales force, Direct Marketing . » Employ former Bank Employees. • Critical to Motivate Branch Staff » Commissions. » Incentive Plans for Employees. » Trips & Awards » Promotional Campaigns to Banks’ Customer • Create a Strong Retail Mindset » Retail Business Know-how . » Mass Customer Marketing.
  • 14. 10 Success Factors(Contd..) • Well Researched Marketing Effort Needed. » Use Dominant Brand . » Direct Customers Campaign/Quick Start. • Deep Knowledge of the Customer must be starting point. » Leverage Customer information . » Start with the product that directly appeal to the customer. • Develop 2 to 3 simple savings product esp. for the bank.
  • 15. 10 Success Factors(Contd..) • Invest in the right technology infrastructure. » Sale support system in the branches . » Tailor Sales IT to the Bank. • Design operational flows esp. for the bank. • Develop a robust Contract Agreement for the bank. • Follow a Business Plan.
  • 16. Case Study : Standard Chartered Bank & BALIC Ø Standard Chartered Bank – One of the Largest Foreign Bank in India Ø Catering to the High NetWorth clients and the Mass Affluents’ Ø 83 Branch Offices with presence in 25 cities Ø Customer Base of 2.50 million Ø Deposit Base of over Rs. 135 billion (USD 3 bn) Ø Client Habits : Savvy Customer Base with both high branch traffic and Off-Site Banking habits. Ø Joint operations were rolled out in January 2002 with 25 FSCs covering 30 Bank Branches.
  • 17. Case Study : Standard Chartered Bank & BALIC Model Results Ø A designated person stationed in Ø The Benchmark for the Indian each Branch selling Insurance. Industry for Bancassurance Ø Selling through multiple Channels Ø Bancassurance contributes 20% of Distribution :- Branch Banking, of total income from Retail Priority Banking, Outbound Sales Banking operations Team, Mortgages, Credit Cards etc Ø Avg Productivity per person is Ø Over 250 Sales Staff dedicated over 12-15 policies per month selling Insurance in these and Avg Ticket Size stands at Distribution Channels USD 1,100. Ø Dedicated Operation Staff for Ø GWP of USD 100 mn for FY 08- processing SCB Proposals 09 & earnings to Bank to be in Ø Fortnightly Saturday Schools for range of USD 25-30 mn Sales Staff Ø Regular UnitLinked Products fit in the clients needs of the Bank.
  • 18. Distributions servicing different Customer Segments Channels of Distributions In-Branch Dedicated Relationship Out Bound Sales Team Relationship Managers Sales Team Managers Distributions Catering to Different Customer Segments Retail High Loan New Walk-in Networth SMEs Customers Customers Customers customers
  • 19. Channel Distribution : Standard Chartered Bank… 15% 1% 12% 72% Branch Banking Priority OBST SME Branch Banking / Walk-ins Contribute over 70% of Insurance Sales
  • 20. Case Study : Syndicate Bank & BALIC Ø Syndicate Bank – Nationalised Bank with a dominant holding by the Government Ø Catering to Middle Class and Rural Base Ø 2000 Branch Offices with presence in 500 cities and town Ø Customer Base of over 22 million Ø Deposit Base of over Rs. 462 bn (USD 10.2 bn) Ø Client Habits : Branch Walk-ins for transactions with advice from the Branch Staff / Manager for all financial decisions Ø Bancassurance tie-up with Bajaj Allianz in October 2003
  • 21. Case Study : Syndicate Bank & BALIC MODEL • Integrated Model Implemented with the Bank Staff being regularly trained to directly sell Insurance to its customers. • Phase wise Roll Out started in Oct’ 03 with 11 Insurance Managers covering 40 Branches. • Lastly over 1500 branches covered, with 250 Bank employees selected as Insurance managers & over 175 employees of BALIC, to promote insurance sales • GWP of approx. USD 45 mn for FY 08-09 & Earnings to Bank to be in range of USD 7-9 mn • Traditional endowment, Pension Product and Mortgage Reducing Term Assurance are the key products sold. • Among the most successful Public Sector Bank Distribution tie-up in India. Over 50,000 policies sold annually
  • 22. Bancassurance Huge Potential for Growth…… Thank You Ashish Kaushik Manager Bancassurance Bajaj Allianz Life Insurance, India

×