Bancassurance is an efficient distribution channel with higher productivity and lower costs than traditional distribution channels

1. Banc Assurance
Presenter
Sajjad Hussain
(Sajjad Chitrali)

2. Topic:
Group Members
• NAME CLASS NO
• UMAR ALI 391
• IKRAM-UR-REHMAN 393
• WALEED MIRAJ 394

3. • Concept started by British in 1965.
• Started in Pakistan 1979.
• EFU was the first in Pakistan to introduce a
product to a bank account holders.
• MCB started in 2004
• HBL started in 2006
• Although a not so familiar term in Pakistan.

4. • Definition: The selling of life assurance and
other insurance products and services by
banking institution.
Explanation: Bancassurance arrangement
benefits both the firms.
The bank act as an intermediary.

5. Benefits to all parties
•Fee based income
•Low capital – high ROE
• Improved customer
service – Culture shift
• Market opportunity
• Customer expectation
• Success in markets
around the world
• New distribution channel
• A ‘warm’ customer base
• Better persistency
• Higher premiums
• Profitable Growth
• Competitive products
• Success in markets
around the world
•Changing attitudes &
awareness
• Want options
• One stop financial
service
• Trust banks
Banks Insurance Companies Customers

6. Forms of
• Strategic Alliance:
» Tie-up between bank and an insurance company.
» The bank only markets the products of the insurance
company.
• Full Integration:
» A full Integration of banking and insurance services.
» Bank controls sales insurer service levels including
approach to claims.
» The bank has an additional core activity almost similar to
that of an insurance company.

7. • Mixed Model
» The marketing is done by the insurer’s staff and the bank
is responsible for generating lead only.
» The database of the bank is sold to the insurance
company.

8. in Pakistan
• Bancassurance in Pakistan is not completely
non-existent.
• Life insurance companies have worked with
banks.
• Short of a true bancassurance arrangement.

9. Banks active in

10. • In the words of Suleiman ( Team Leader of
Jubilee life insurance in HBL Peshawar region).

11. Direct Debit Standing Order

12. Summary
• In earlier time the concept was not familiar as
the insurance agent made fraud with the
customer.
• Bancassurance is growing day by day as
people trust banks more than an insurance
agent.
• It helps the economy as two financial
institutions come together.