The document outlines the agenda for a discussion on bancassurance. It provides background on bancassurance including its origins in France in the 1980s and introduction to India in 1999. It describes the evolution of bancassurance as a way for banks to address pressures around customer retention, staff retention, universal banking, and optimizing resources. For insurers, bancassurance provides benefits like channel diversification, access to customers, geographical reach, and establishing a sales-focused culture. The document then characterizes bancassurance as a win-win situation for both banks and insurers and outlines different distribution models including integrative, specialist, and financial planning. It closes with a discussion of distribution channels and a

1. AGENDA
 Bancassurance – History
 Bancassurance – Evolution
 Bancassurance – A Win Win Situation
 Bancassurance – Distribution Models
 Bancassurance – Distribution Channel
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2. Bancassurance - History
 Originated in France in 1980s
 Spread rapidly across Europe
 Introduced in India in 1999
 Opening up of insurance industry
 20 new companies
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3. Bancassurance - Evolution
 Pressures on Banking Sector:
 Customer retention in the face of competition
 Staff retention and motivation
 Universal Banking- approach to provide all
financial product under one roof ; a broader
relationship approach
 Optimum utilisation of infrastructure and
resources- maximise revenue
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4. Bancassurance - Evolution
 Pressures on Insurance Sector:
 Channel diversification from traditional direct
sale
 Access to a high quality customer base
 Achieve the geographical reach within minimum
time and cost
 Ensure higher probability of success in the sales
process
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5. Bancassurance
– A Win Win Situation
Solution:
Insurance + Banking= Bancassurance
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6. Bancassurance
– A Win Win Situation
 The provision of insurance and
banking products and services through
a common distribution channel or to a
common client base.
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7. Bancassurance
– A Win Win Situation
Bank Insurance Company
 Customer retention  Revenue and channel
diversification
Satisfaction of more financial  Quality customer access
needs under the same roof
 Revenue diversification  Quicker geographical reach
 More profitable resource  Creation of brand equity
utilisation
 Enriched work environment Leverage service synergies with
Bank
 Establish sales orientated culture  Establish a low cost acquisition
channel 7

8. Bancassurance
- Distribution Model
 Integrative / Generalist Model
 Specialist Model
 Financial Planning Model
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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 9

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
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11. Bancassurance
- Distribution Model
 Financial Planning Model
 Insurer employs sales force and deploys them at
bank branches
 Quick to implement as compare to other models
 Bank as introducer, insurer sales force as
converters
 Offers each customer and prospect a full
financial planning package addressing all of the
individual's financial concerns
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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
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13. Product- Sales approach
High value Low Value
Customer type
Low volume High Volume
High
• Private Banking
Full Service • Investment
advice
• Estate Planning
• Portfolio
management
Distribution- Value Add
including
Full advice insurance
planning
(Financial
• Investment advice
Advisor) • Needs based selling
• Ongoing relationship
management
• Customised
Limited advice insurance plans
(Life agent) • Income
protection
• Savings
No advice • Segment specific • Segment specific • Segment • Segment
features features specific features specific
(direct)
Low
features
Customised Product Complexity Commodity
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14. SWOT Analysis
 Strengths
 Vast untapped market
 Huge pool of skilled professionals
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15. Contd….
 Weakness
 Lack of networking among bank branches
 Saving Ability of Middle Class
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16. Contd….
 Opportunities
 Data mining
Banks have a huge customer database which
has to be properly leveraged. Target segments
should be identified and tapped.
 Wide distribution networks of banks
 Exploit the corporate customers and tie - up for
insurance of the employees of corporate clients.
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17. Contd….
 Threats
 Human Resource Challenges
 Non-response from the target groups
can also pose a challenge.
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18. THANK YOU
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