The bank insurance model (BIM), also sometimes known as bancassurance or allfinanz, is the partnership or relationship between a bank and an insurance company, or a single integrated organisation, whereby the insurance company uses the bank sales channel in order to sell insurance products, an arrangement in which a bank and an insurance company form a partnership so that the insurance company can sell its products to the bank's client base.
The bank insurance model (BIM), also sometimes known as bancassurance or allfinanz, is the partnership or relationship between a bank and an insurance company, or a single integrated organisation, whereby the insurance company uses the bank sales channel in order to sell insurance products, an arrangement in which a bank and an insurance company form a partnership so that the insurance company can sell its products to the bank's client base.
Bancassurance comprises of two words: bank and insurance. It is an agreement between bank and insurance companies where banks operate as intermediary between insurance company and its customers and sell insurance through their existing distribution network.
https://efinancemanagement.com/financial-management/bancassurance
The presentation explains the concept of banking and its lending system. Different types of credit facilities as well as principles of sound lending are also discussed.
Watch out full video on Youtube. Click on the link below-
https://youtu.be/48r3LhGRX_A
Credit monitoring is the continuous process of reviewing and following loan accounts, asset quality and credit reports to judge the accuracy and standard of loan asset.
Whenever loan is granted to customer, banker is required to ensure that it remains a standard asset and does not turn out to be non-performing asset.
Pre-disbursement Care
Sanction letter shall be issued detailing various terms and conditions on which the loan has been approved.
Acknowledgement letter should be obtained from borrower stating that he/she has well understood and noted the terms of sanction.
Security documents along with acknowledgement letter should be kept aside properly.
Credit report should be reviewed periodically to ensure that there are no adversity causing risk to loan recovery.
Documentation should be done in proper format with all signatures as a part of due diligence.
End use verification to ensure legality of purpose.
Post-disbursement Care
Post-disbursement monitoring involves both onsite monitoring (visiting the unit) and offsite monitoring (scrutiny of records)
OFFSITE MONITORING INVOLVES :-
Study of Quarterly Information System, Monthly Select Operational Data, Cash Budget and Financial Statements
Stock Statement Verification
Scrutiny of the register and bills
Annual report containing director’s report, management discussion analysis, auditor’s report and financial statements
Comparison of actual financials with projected one on the basis of which loan was sanctioned
ONSITE MONITORING INVOLVES :-
Physical verification of stock
Check whether all machinery are working in good condition
Checking of Register Books ( Sales register, Purchase register, Production register, Stock register)
Invoices and utility bills
No. of skilled and unskilled workers in the unit
Thank you for Watching
Subscribe to DevTech Finance
Bancassurance comprises of two words: bank and insurance. It is an agreement between bank and insurance companies where banks operate as intermediary between insurance company and its customers and sell insurance through their existing distribution network.
https://efinancemanagement.com/financial-management/bancassurance
The presentation explains the concept of banking and its lending system. Different types of credit facilities as well as principles of sound lending are also discussed.
Watch out full video on Youtube. Click on the link below-
https://youtu.be/48r3LhGRX_A
Credit monitoring is the continuous process of reviewing and following loan accounts, asset quality and credit reports to judge the accuracy and standard of loan asset.
Whenever loan is granted to customer, banker is required to ensure that it remains a standard asset and does not turn out to be non-performing asset.
Pre-disbursement Care
Sanction letter shall be issued detailing various terms and conditions on which the loan has been approved.
Acknowledgement letter should be obtained from borrower stating that he/she has well understood and noted the terms of sanction.
Security documents along with acknowledgement letter should be kept aside properly.
Credit report should be reviewed periodically to ensure that there are no adversity causing risk to loan recovery.
Documentation should be done in proper format with all signatures as a part of due diligence.
End use verification to ensure legality of purpose.
Post-disbursement Care
Post-disbursement monitoring involves both onsite monitoring (visiting the unit) and offsite monitoring (scrutiny of records)
OFFSITE MONITORING INVOLVES :-
Study of Quarterly Information System, Monthly Select Operational Data, Cash Budget and Financial Statements
Stock Statement Verification
Scrutiny of the register and bills
Annual report containing director’s report, management discussion analysis, auditor’s report and financial statements
Comparison of actual financials with projected one on the basis of which loan was sanctioned
ONSITE MONITORING INVOLVES :-
Physical verification of stock
Check whether all machinery are working in good condition
Checking of Register Books ( Sales register, Purchase register, Production register, Stock register)
Invoices and utility bills
No. of skilled and unskilled workers in the unit
Thank you for Watching
Subscribe to DevTech Finance
suatu usaha rihed utk membuat quality asurance di asia tenggara di pendidikan tinggi, utk persiapan persamaan pt di asia tenggara dimasa mendatang, sebagai p3rsiapan pt dn bagmn bisa menjadi bagian asia tenggara
Presented by Winnie njau, Group Head of bancassurance, KCB at the 1st Annual Bancassurance Conference | Villa Rosa Kempinski | Nairobi | Kenya.
Lloyds Africa Markets
Delivered at the International Microinsurance Conference 2014 in Mexico City (http://bit.ly/1rUzwBu) this presentation focuses on the need to understand the business compulsions and economics of the value chain members (Agents, MNOs and insurance companies) of mInsurance. It makes a case on existence of multiple mInsurance models and the business logic for each ... a comprehensive analysis of a complex subject.
Multi Channel Distribution in Insurance - WhitepaperNIIT Technologies
This whitepaper explores the need to develop an effective multi-channel distribution strategy that meets customer demands and delivers differentiating customer experience. Apart from the conventional ways of marketing an insurance policy, which include brokers, agents, kiosks, work site marketing and direct marketing, insurance companies now explore new avenues of innovative and attractive range of distribution techniques that can be exploited to their advantage.
The Digital Insurer speaks at AIA's inaugral bancassurance seminarThe Digital Insurer
The Digital Insurer was pleased to talk about how to think digital and transform face -to-face bancassurance models in Asia.
visit the-digital-insurer.com for more information on the conference.
Bancassurance MENA Complimentary Report - Ali Zeeshan
IIR Middle East conducted a qualitative study with leading bancassurance providers, on key issues facing the market and also to gain insight into, how they have built successful bancassurance businesses as well as what advice they would give to others looking to establish themselves in the market. Visit http://bancassurance.iirme.com/
Bancassurance MENA Summit Complimentary ReportAli Zeeshan
IIR Middle East conducted a qualitative study with leading bancassurance providers, on key issues facing the market and also to gain insight into, how they have built successful bancassurance businesses as well as what advice they would give to others looking to establish themselves in the market. for more information please visit www.iirme.com/bancassurance
The WBG's Global Index Insurance Facility, the USAID and BASIS/I4-sponsored Global Action Network (GAN) and the ILO's Impact Insurance Facility organised a webinar to look into the question "Customer education in agriculture insurance". This webinar featured resource persons both from implementing organizations and international development players. They looked into consumer education roles of different players in the insurance value chain, discussed issues arising at both micro (individual farmers) and meso (community) levels, and showcased some interventions on how consumer education is undertaken.
Speakers: Lory Camba Opem (International Finance Corporation), Brenda Wandera (International Livestock Research Institute, Kenya) and Navin Sharma (ICICI Lombard General Insurance Company, India).
Indian Insurance Industry - Key Issues and Challenges - Part - 2Resurgent India
While a range of economic and financial reforms have helped the insurance sector grow, there remains a host of challenges which need to be addressed for harnessing the full potential of the sector:
Analytics is a two-sided coin. While on one side, it uses
descriptive and predictive models to gain valuable knowledge from data, i.e. data analysis, on the other side, it provides insight to recommend action or guide decision making, i.e. communication
Bancassurance is one of the most popular distribution channels for conventional insurance and takaful alike. Muhammad Ashfaq-Ur-Rehman explores the growth of the sector and looks at the challenges holding it.
In the new Digital economy where Customers are demanding personalised, transparent & seamless customer journeys over multiple digital devices as standard
Are Insurance companies prepared?
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Etude PwC "Insurance 2020" : dommage et digital (2014)PwC France
http://bit.ly/AssuranceEnLigne
Pour les compagnies d’assurance, multiplier les échanges numériques avec les clients est un élément essentiel pour les fidéliser et se différencier des concurrents. C’est ce que révèle le rapport de PwC "Insurance 2020: The digital prize – Taking customer connection to a new level". Le cabinet d’audit et de conseil a interrogé plus de 9 000 consommateurs dans le monde, dont 500 français.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
NO1 Uk Rohani Baba In Karachi Bangali Baba Karachi Online Amil Baba WorldWide...Amil baba
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
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how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
2. The Presentation Includes :
1) The Nigerian Journey on Bancassurance
2) Key Success Factors
3) What it takes to define a winning strategy with
banks?
”
2
Bancassurance: Opportunities and Challenges
3. 3
Bancassurance: Opportunities and Challenges
According to NAICOM and CBN:
Bancassurance has been defined as “the
process of using bank’s branches, sales
network, and customer relationships to develop
sales of insurance products”.
Bancassurance is a strategy for entrenching
insurance culture in the country.
Bancassurance is neither an insurance
product nor a means for banks to do
underwriting business. It is a channel for
distribution of insurance products.
4. 4
Banking and Insurance
BOFI Act
CBN Act
Deposits
Withdrawals
Negotiable
instruments
Insurance Act
NAICOM Act
Premiums
Risk Underwriting
Claims
Proposal Forms
Certificate
Debtor Creditor
relationship
Principal Agent Bailee
Bailor
Rights and duties of
bank & Customer –use
of deposit, notice,
statements, privacy.
Provide finance charge
interest
Utmost Good Faith
Indemnity
Insurable Interest
Subrogation
Contribution
Proximate Cause
Distribution Channel
Added
CustomerValue
5. 5
Bancassurance: Opportunities and Challenges
2010
• Universal Banking ceased
2010 – 2014
• Uncertainty about Bancassurance
July 2014
• CBN Circular disbanding Bancassurance
• NAICOM/CBN discussed
October 2014
• CBN set up Committee to examine Bancassurance
• NAICOM submits position paper on Bancassurance
December 2014
• National Insurance Summit where Bancassurance was discussed
January 2015
• CBN exposed Bancassurance guidelines
6. 6
Bancassurance: Opportunities and Challenges
Features of CBN Bancassurance Guidelines
Referral model only- Banks can focus on core banking business.
Disclose commission in annual accounts report.
Referral to insurer as the partner of the Bank
Banks cannot pay premium on behalf of a customer.
Must state the name of the underwriter
Must exclude all liability of Bank .
Do due diligence/periodic assessment (in its inspection).
Use only two (2) insurance companies.
7. 7
Bancassurance: Opportunities and Challenges
Features of CBN Bancassurance Guidelines
Products must be approved by NAICOM.
List of items needed to get CBN approval.
Bank name must not appear at the product.
Insurance staff can occupy banking hall.
Bank can collect premium “as collecting agent” and pay to insurer’s
account with bank.
Not share premium with insurer.
Cannot compel a customer to use particular insurer.
Don't charge customers any service charge or administration fee.
8. 8
Bancassurance: Opportunities and Challenges
Key Success factors according to NAICOM & CBN
Success of Bancassurance would largely
depend on how well regulatory
responsibilities are apportioned, products are
packaged, premiums are remitted and
customers changing needs are met.
There is a huge untapped market in Nigeria,
and with Bancassurance insurance sector is
set to increase insurance penetration level.
If implemented properly Bancassurance can be a
win-win situation for all participants': viz. banks,
insurers and the customers with coordinated and
collaborator regulatory monitoring.
9. And Pragmatism to Strengthen and Sustain the Heart of Strategy
9
Bancassurance: Opportunities and Challenges
No Jargon, No Crap, No
Nonsense
Just Facts, Serious Analysis, and
Actual Experience
10. And Pragmatism to Strengthen and Sustain the Heart of Strategy
10
Bancassurance: Opportunities and Challenges
Key Developments, Major Drivers, Product Development
Why Bancassurance
(Innovative) Bus Models (Strategic Alliance, Full Integration,
Mixed), Multichannel Approach
Digital Revolution in Bancassurance, Digital Thinking, Social Media
Strategy
Creating Positive Consumer Experience, Personalized Customer
Solution
Global Analysis: France, UK, Spain, Portugal, South Korea, USA,
Japan, Sub-Saharan Africa, Kenya
Bancassurance SWOT Analysis and Porter’s Five Forces Model
See Bancassurance - Laying the Foundation for Growth/The Insurance Survey 2014
11. And Pragmatism to Strengthen and Sustain the Heart of Strategy
11
Bancassurance: Opportunities and Challenges
SWOT Analysis
STRENGTHS
Huge pool of skilled professionals
Established credibility of the banks
Wide network of branches, even in the remotest
areas
Understanding about the attitude and behaviour
of the consumers
Market expansion for insurance companies
Trained staff, brand name and reliability
High untapped market potentials
WEAKNESSES
Rural branches not under banking system,
and under-staffing issues
No ready availability of trained staff
Lack of personalized service
Differences in approaches between banks
and insurance companies
Customers constrained by time
Inflexibility of the products
OPPORTUNITIES
Huge untapped market
Requirements of urban customers can be tapped
Database can be used to find homogenous group
Cross-selling of insurance products for banking
products
Corporate and salaried customers can be
targeted for specific products claiming
convenience and ease of access
THREATS
Changes in work culture and attitude
difficult among bank employees
Non-response from targeted customers
May affect the portfolio of banks if
insurance is perceived as a substitute for
bank savings
There may be loss of business confidence
Competition between existing players
Unsuitable marketing strategy and
personnel may result in more harm than
benefit
12. And Pragmatism to Strengthen and Sustain the Heart of Strategy
12
Bancassurance: Opportunities and Challenges
“Inability to articulate a strategy in a
single, incisive, natural – sounding
sentence is a sure sign that there is
something wrong in the strategy itself”
13. And Pragmatism to Strengthen and Sustain the Heart of Strategy
13
Bancassurance: Opportunities and Challenges
“When you can measure what you are speaking
about, and express it in numbers, you know
something about it; but when you cannot measure it,
when you cannot express it in numbers, your
knowledge is of a meager and unsatisfactory kind.”
- William Thompson (Lord Kelvin), 1824- 1907
14. And Pragmatism to Strengthen and Sustain the Heart of Strategy
14
Bancassurance: Opportunities and Challenges
Strategic planning, as the job of collecting and
analyzing the enormous amounts of data that
characterize the modern world and monitoring
changes in markets and the competitive environment,
provides the raw material and factual basis for
strategic thinking and opportunistic decision making.
Synthesize this raw material into an integrated set
of actions designed to create a sustainable advantage
over competitors.
15. And Pragmatism to Strengthen and Sustain the Heart of Strategy
15
Bancassurance: Opportunities and Challenges
16. And Pragmatism to Strengthen and Sustain the Heart of Strategy
S/N COUNTRY %
2013
1. Taiwan 14.5
2. South Africa 12.7
3. Hong Kong 11.7
4. Japan 8.8
5. United Kingdom 8.8
6. Finland 8.7
7. South Korea 7.5
8. Denmark 6.9
9. Portugal 6.4
10. Ireland 6.0
11. Namibia 5.4
12. Mauritius 4.0
13 Kenya 1.2
14 Egypt 0.3
Insurance Penetration: Premium as a % of GDP for Life Business
16
Bancassurance: Opportunities and Challenges
17. S/N COUNTRY USD
2013
1 Hong Kong 4445
2 Switzerland 4211
3 Finland 4109
4 Denmark 4093
5 United Kingdom 3474
6 Japan 3346
7 Sweden 3215
8 Taiwan 3204
9 Ireland 2869
10 France 2391
11 Singapore 2388
12 South Africa 844
13 Mauritius 382
14 Namibia 288
15 Kenya 12
16 Egypt 10
17 Nigeria 3
And Pragmatism to Strengthen and Sustain the Heart of Strategy
Insurance Density: Premium Per Capita for Life Business
17
Bancassurance: Opportunities and Challenges
18. And Pragmatism to Strengthen and Sustain the Heart of Strategy
18
Bancassurance: Opportunities and Challenges
The Gap is Huge and the Harvest is
Plentiful, but the laborers are few;
therefore entreat the lord of the
harvest to send more laborers, actually
reapers, into his field.
19. Identify disconnect between needs/wants and
solutions - between crisis and customer
responses
Preparedness gap
Advice gap insufficient education and
guidance
Supply issue: the market is there
19
And Pragmatism to Strengthen and Sustain the Heart of Strategy
Bancassurance: Opportunities and Challenges
20. And Pragmatism to Strengthen and Sustain the Heart of Strategy
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Bancassurance: Opportunities and Challenges
21. Market
General
Needs
Specific
Needs
Solutions Gap
CAPEX GROUP Competition Proposed Solutions
Offerings Distribution Offerings Distribution Offerings Distribution
And Pragmatism to Strengthen and Sustain the Heart of Strategy
21
Bancassurance: Opportunities and Challenges
MPD LINKAGE
22. And Pragmatism to Strengthen and Sustain the Heart of Strategy
China: Premiums From Online Business Grow by 200% p.a in 2011-2013
22
Bancassurance: Opportunities and Challenges
Internet users aged 30-50 pay the most attention to
insurance at 58 percent, higher than the national
average of 18 percent. Male Internet users, are more
interested in insurance than female users.
High-school or lower education are most
interested in insurance online.
Premiums collected through Internet sales still
amounted to less than 3 percent of the total
insurance premiums.
23. India: Mobiles are the new growth story for insurers
And Pragmatism to Strengthen and Sustain the Heart of Strategy
23
Bancassurance: Opportunities and Challenges
Insurers are increasingly equipping agents with tablets and mobile phones loaded
with proprietary software to quicken the insurance sales process, prevent mis-selling,
reach out to customers in distant places and improve productivity.
Agents to adopt a digital sales process which takes the prospective consumer
through a series of steps that will help select a product.
Agents are Moving to sell through digital means (laptop or tablet)
With the adoption of technology, a new set of agents emerge.
Mobile technology has helped improving overall productivity of agents by 10-15%.
Mobile technology is helping life insurers reach out to distant areas by reducing the
need for physical infrastructure.
24. And Pragmatism to Strengthen and Sustain the Heart of Strategy
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Bancassurance: Opportunities and Challenges
F2F
25. And Pragmatism to Strengthen and Sustain the Heart of Strategy
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Bancassurance: Opportunities and Challenges
Bancassurance Contribution
26. And Pragmatism to Strengthen and Sustain the Heart of Strategy
26
Bancassurance: Opportunities and Challenges
REFERRAL DISTRIBUTION INTEGRATED
Commission for data
Insurance Marketers
do the selling.
Refer customers to
insurance desk
Practiced in India,
Indonesia, and South
Africa
Banks Staff promote and
market Insurance
Bank Collects the
Premium and Remits to
Insurer.
Practiced in USA,
Germany, UK, Japan, and
South-Korea.
Insurance and Banking
products are sold
together as one.
The bank is directly
involved in selling.
Practiced in France,
Belgium, Spain, UK and
Ireland.
27. And Pragmatism to Strengthen and Sustain the Heart of Strategy
27
Bancassurance: Opportunities and Challenges
Banks – Added
Income
Banks
Customers –
AddedValue
Financial Inclusion :
Increase Through
AccessTo Finance
Insurers –
Product
Distribution
BancassuranceVirtuous Cycle
28. And Pragmatism to Strengthen and Sustain the Heart of Strategy
28
Bancassurance: Opportunities and Challenges
To Banks – Revenue Growth:
Increased Revenue & Diversification - Risk
free non-interest income
Customs Retention, loyalty and greater
brand recognition
Staff of Branch productivity and so lower
operating expenses
Market Competition – spare decrease in
interest margins
Contain Changing Customer Preferences
29. And Pragmatism to Strengthen and Sustain the Heart of Strategy
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Bancassurance: Opportunities and Challenges
To Customers – CustomerValue:
Ease of access to financial services
Simplified insurance products
Competitive pricing
Simplified payment Method
30. And Pragmatism to Strengthen and Sustain the Heart of Strategy
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Bancassurance: Opportunities and Challenges
To Insurers – Market growth :
Access to customers – deepening
Insurance penetration .
Access to established distribution
network.
Source of new business – Large
customer base.
New products
Leveraging banks brand.
31. And Pragmatism to Strengthen and Sustain the Heart of Strategy
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Bancassurance: Opportunities and Challenges
Basics :
The Right Partners
Clarified Expectations
Technical Competency
Trust & Brand (contamination)
Compensation: optimize compensation level
and structure keeping in mind customer
value and business viability
32. And Pragmatism to Strengthen and Sustain the Heart of Strategy
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Bancassurance: Opportunities and Challenges
Basics :
Privacy Concerns
Products & Processes: bridge the gap and
strengthen partnership and compliance
(Lack of) Integration (Sales & Operations)
Multiple Data Management Platforms
(Lack of) Unified Commands
Contain Core Business Interference
33. And Pragmatism to Strengthen and Sustain the Heart of Strategy
33
Bancassurance: Opportunities and Challenges
Products Sold Via Bancassurance Model
Credit life insurance /Personal loans.
Comprehensive Motor insurance/ Car loans.
Home property Insurance /Mortgage loans.
This insurance products offer protection to Banks against loan impairments
due to death of the borrower or loss or damage of the asset that the loan
was used to purchase.
This enhances the security of loans and improves the Banks risk profile
thereby fostering long term financial sector confidence.
Insurance products most commonly sold through Bancassurance
arrangements are insurance that are linked to banking products
34. And Pragmatism to Strengthen and Sustain the Heart of Strategy
34
Bancassurance: Opportunities and Challenges
Products Sold Via Bancassurance Model
Health/Medical insurance;
Accident & Disability;
Education insurance;
Third party motor vehicle insurance;
Other forms of property insurance;
Professional indemnity insurance etc.
35. And Pragmatism to Strengthen and Sustain the Heart of Strategy
35
Bancassurance: Opportunities and Challenges
I
ALICO, NBK in Marketing Tie-Up news article that appeared in Kuwait / Gulf dailies
back in October 1998.
You will notice focus on segmented markets:
‘’…..a good fit, simple, flexible, low-touch, easy to understand product packaged and
delivered to segmented markets.”
“…Few institutions know their customers more intimately in a financial sense
than banks. Some customer segments”, Fakhoury added. “do not have adequate
insurance and are not presently targeted by insurers. Banks offer a way of that large
market to be reached and as savvy insurers ALICO capitalize on this opportunity.
With the right strategy bancassurance can be a significant avenue for growth
especially we know how much NBK focus on analyzing their customers’ financial needs
the value of life insurance as an efficient solution to their customers” income
replacement and estate planning needs.”
TheVoice of Experience
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Bancassurance: Opportunities and Challenges
TheVoice of Experience
You will also see the stress placed on New Frontier, finite amount of Shelf Space and
Actuarial Capabilities:
“….We are proud of our strategic relation with NBK – the leading bank in Kuwait,” Mr.
Fakhoury added. “We view this relation as a New Frontier – an exciting new
opportunity for ALICO and NBK to mutually continue to build, grow and prosper.
There is a finite amount of shelf space in the banking market and we plan to
fill it with our products. As we wrap our resources around our customers
needs, we generate an on-going, dynamic stream of breakthrough market-
responsive value packages. With our in-house actuaries we have a strong
product portfolio (in excess of 200,000 packages) and we can develop more in areas
like: Education Protection, Wedding Plans, Health Insurance, Professiona
Dismemberment, Professional Liability, Employee Benefits, Personal Accident, Disability
Income, Mortgage life, Credit Life Annuities, Retirement Packages, Salary / Income
Continuation Plans, Standard of Living Plan, etc.”
37. And Pragmatism to Strengthen and Sustain the Heart of Strategy
37
Bancassurance: Opportunities and Challenges
TheVoice of Experience
Moreover the Financial Supermarket and Glocal Relationship
were emphasized:
“….ALICO/NBK collaboration agreement offers a sort of “one-
stop shopping” for consumers seeking financial security and
independence: Full financial services through one source – a
Financial Supermarket.” Fakhoury continued “Together with
NBK we weave a Glocal relationship – a global coverage with
local presence. International depth with national identity.
A Tradition of Confidence a Future of Security.”
38. And Pragmatism to Strengthen and Sustain the Heart of Strategy
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Bancassurance: Opportunities and Challenges
TheVoice of Experience
II.
1. Risk transfer may help banks release some of their reserves to
enhance their bottom-line accordingly.
2. All commercial and retail banking clients are purchasers of
insurance products.
3. The expansion of consumer lending has made it imperative for
banks to “partner” with insurance companies to provide a
comprehensive service for their customers.
4. Banks need to diversify their revenue stream to become less of
interest margin-dependent organizations. The value proposition
includes enhancing the profitability of banks through added
source of fee/commission income. Tap another area of
profitability.
39. And Pragmatism to Strengthen and Sustain the Heart of Strategy
39
Bancassurance: Opportunities and Challenges
TheVoice of Experience
5. Opportunities for greater customer lifecycle management.
6. Drawing on above successes along with our Actuarial /
marketing expertise, we used to demonstrate our capabilities to
research banks’ well-segmented database to tailor-make
complementary products that could help banks differentiate their
own products and so sell more.
7. Diversify and grow revenue base from existing relationships.
40. And Pragmatism to Strengthen and Sustain the Heart of Strategy
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Bancassurance: Opportunities and Challenges
TheVoice of Experience
III.
Real life insurance products (not the simple ones)
are sold not bought …etc Hence we put RLGS /
capabilities at the bank’s disposal (our outstanding
performance with SABB is a common knowledge in
Saudi).
Churchassurance
Mosqueassurance
Clubassurance
41. And Pragmatism to Strengthen and Sustain the Heart of Strategy
41
Bancassurance: Opportunities and Challenges
TheVoice of Experience
IV.
I also used to caution:
1. Patience is an important factor when it comes to revenue building.
Understanding differences in marketing style and culture is critical.
For example, banks are used to a transactional environment; sales
happen right away and in real time. In contrast, insurance sales can
take longer.
2. We – both parties – need to weigh the investment we are making vs
expected return.
3. Education on both sides of the table is an important ingredient. We
have researched and are learning how banks think and work; ditto
for bank management
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Bancassurance: Opportunities and Challenges
TheVoice of Experience
4. We – both parties – need to enter the
relationship with eyes wide open. Forging a
successful relationship takes commitment, time
and hard work.
5. We may need to help the regulatory
authorities, both in the banking and insurance
sectors, to facilitate strategic relationships.
43. And Pragmatism to Strengthen and Sustain the Heart of Strategy
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Bancassurance: Opportunities and Challenges
TheVoice of Experience
Regulators are our Allies
Create Synergy making the whole
greater than the sum of its parts
(2+2 = 5 or more)
Share customers → boost revenues
Share resources → cut cost
44. And Pragmatism to Strengthen and Sustain the Heart of Strategy
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Bancassurance: Opportunities and Challenges
Just Keep In Mind
High FYC must be appropriately reserved for, and
annualization must be balanced through a claw back
provision where you need to reserved for sales team
turnover. Naturally, this could impact customer value on
the one hand and defeat the purpose on the other hand –
reflecting on business sustainability in most cases. Hence,
you must focus on customer value leveraging a persistency
provision and revenue therefrom towards proper
alignment to motivate all parties.