Bancassurance Retail Strategy (Ukraine)


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Gijs Jeuken, CEO, AEGON Life, Ukraine

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Bancassurance Retail Strategy (Ukraine)

  1. 1. aegon.comBancassurance Retail StrategyPitfalls in choosingthe right approach toa lasting marriageGijs JeukenCEO Aegon Life UkraineCIS Bankers Conference – Kiev June 2013
  2. 2. Overview of Aegon worldwide
  3. 3. 3AEGON at a glance25,000EMPLOYEESPENSIONSASSET MANAGEMENT+20 marketsTHROUGHOUT AMERICA,EUROPE AND ASIALifeinsuranceUnderlying earnings before tax in 2012EUR1.8billionRevenue-generating investmentsEUR458billion11) As per Dec 31, 2012
  4. 4. 44Aegon  CEE  Aegon Presence in CEE
  5. 5. 5Focused organization with solid financial position€ millions 2012 2011 %Underlying earnings before tax 1,787 1,522 +17%Net income 1,571 872 +80%New life sales 6,730 5,700 +18%Total gross deposits(excl. run-off businesses)39,470 31,690 +24%Total spending on goods and services 1,34 1,48 -9,5%
  6. 6. 6Banc assurance partnerships
  7. 7. 7Aegon Life UkraineMain partners ProductsVTB bank cash loansCredit Agricole Bank cash loansOschadbank mortgagesCreditprombank mortgagesKhreschatyk mortgagesRaiffeisen Bank Aval mortgagesCredit Dnepr Bank cardsFinances&Credit mortgagesErste Bank mortgages§  The policies issuing process for cash loans are automatically provided by banks employees,§  Due to having the biggest regional agent network Aegon is able to provide insurance for mortgageclients.
  8. 8. Bancassurance – the revenue stream of the future
  9. 9. 9Structure of the banks’ income – worldwide trendsIn mature markets,commission frominsurances sales isa major incomesource for banks41%EmergingmarketsPre-mature(new)marketsMaturemarketsLoansCurrent accounts& depositsInvestmentsRU, UA, SM,BH, AL, KO,BYPL, CZ, SK,HR, SL HU,RO, BGA, D, F, E,B, S, CH, I,DK3,2%6,5%Insurance
  10. 10. 10Bancassurance - the answer to all players’ needsBanks§  New income source to compensate for the decreasing margins and slowing down of thelending activities;§  Long term client retention;§  Attracting new clients from competitors;§  Innovation and differentiation;Clients§  Financial solutions for long term objectives;§  Trustworthy, professional financial consultancy;§  One stop shopInsurers§  Access to quality portfolio of clients and to professional sales force;§  Long term stability and growth
  11. 11. 11Ukrainian market developmentsCrisis not over yet…..§  With pressure on costs and deposit inflows§  Consumer trust being low§  Moderate levels of lending….and banks having cut away some upside§  by reducing costs in staff, overhead and G&A§  no longer investing in being distinctive or ahead§  limited resources in IT, Strategy and MarketingInsurers§  consolidating in the Life Insurance sector§  dichotomizing in the non-Life sector
  12. 12. 12Aegon banc assurance frameworksPartnershipBank InsurerClientsProductsProductportfolioJoint ventureCapital CapitalProducts§  A balanced long-term relationship between bank and insurer§  Different models needed for different perspectivesØ  Depends on partner’s strategic approach, commitment, duration, marketpractice and regulatory frameworkBank InsurerJVClientsSpainPolandHungary Romania Romania** AEGON’s JV with Banca Transilvania changed into a partnership as per January 2009Turkey
  13. 13. 13After sales support of bancassurance clientsworking hoursof contact centerMON-SAT 08:00 – 21:00HOTLINE0 800 500 525SKYPEaegon_lifeEMAIL (SERVICEDESK)client_service@aegon.uaFEEDBACK FORMwww.aegon.uaPERSONAL
  14. 14. 14The right solution for each client segment•  Private banking:Ø  Multifund Single PremiumØ  >30 investment funds availableØ  Successful model and product available in Poland, Hungary and in Romania§  Individuals:Ø  Guaranteed savings product, regular premiumØ  Simple investment product, low risk investment strategiesØ  Successful model and product available in Romania§  Explore the future:Ø  Address mass clients from Call Centre, with easy-to-sell solutionsØ  Successful model and product available in Poland, product available in Romania
  15. 15. 15§  These are the times where Banks are in a strong negotiation position, but it is notonly on getting the price down !►  Choose your partner with same share of mind►  Negotiate soft benefits for yourself (training, marketing, product workshops)§  Long lasting relationships start open ended – avoid too much administrativeburden on tenders – look at profit sharing as a solution to build longer term trust►  Insurance companies want to share the future only if they can be part of it►  Healthy competition is in the interest of all stakeholders (clients, banks and IC)§  Keep the IT systems separated as much as possible, do not forget to spend theright amount of time (and sometimes money) here►  This is the bottleneck of growth, trust and profit§  Let insurance companies do the work for you in their core business►  Expert advice for higher end customers►  Marketing and motivation of in-branch staff§  Giving access to client data is a win-win and will give additional yield over time►  As products are complimentary►  Savings, endowment and Unit Linked sales require investments all made by the insurer already§ Pitfalls in choosing your partner
  16. 16. 16BankClientsEmployeesTogether, we create value for all your stakeholders§ Commission + target bonus§  Staff performance increase through trainings§  Long term client retention§  No risks, no costs§  Tailor-made front-end system§  Personalized reporting tools§ Professional & trusted financial consultancy§  Complete financial solutions under one roof§  Wide range of choices§  Easy to understand and transparent products§ Bonuses/commissions without costs for Bank§  Professional development§  Motivation (incentives, contests)§  Performance recognition (clubs)
  17. 17. aegon.comThank you