The document discusses why insurers need banks and opportunities for bancassurance growth. It notes that banks have extensive distribution networks, large customer databases, and effective use of technology that can benefit insurers. However, it also outlines obstacles like poor sales culture and lack of integration. Critical success factors include strategies aligned with the bank's vision and customer needs, a defined sales process, and complete product integration. The document concludes by discussing strategies like becoming a complete financial advisor and expanding to new customer segments to increase insurance penetration through bancassurance partnerships.

1. ..
Why Insurers Need Banks
• Penetration of banking services
• Extensive branch/distribution network
• Massive customer database
• Data mining abilities of the banks is enormous.
• Banking is a daily need thus contact is regular.
• Effective use of technology in banks
* core banking systems
* CRM
* ATMs
* e-banking
* mobile banking

2. ..
Why Insurers Need Banks (contd.)
* Banks are better at mass marketing and branding.
* Lower cost per sales lead (large loyal customer base).
* Banks significant brand awareness within geographic regions.
* Marketing and processing ability.
* Access to multiple communication channels.
- Statements
- Direct mail
- ATMs
- Telemarketing/call centres
- Internet banking
- Mobile banking

3. ..
Current Trends
•Difficult to grow business using traditional agency systems.
•Price competition drive down margins
•Increased compensation demands of successful agents.
•Fewer but larger policies to more upscale client base.
•Neglect of the middle income consumers

4. Obstacles to success
* Poor manpower management
* Lack of sales culture within the banks
* No involvement by the branch manager
* Insufficient product promotions
* Failure to integrate marketing plan
* Marginal database expertise
* Poor sales channel linkages
* Negative altitude towards insurance.

5. Critical success factors
•Successful Bancassurance Ventures tend to exhibit:
•Strategies consistent with the bank’s vision, knowledge of targeted
customer needs.
•Defined sales process for introducing insurance.
•Simple yet complete product offering.
•Strong service delivery mechanism.
•Quality administration.
•Synchronized planning across all business lines and subsidiaries.
•Complete integration of insurance with other bank products and services.
•Extensive and high quality training

6. Opportunities for Growth
• Credit card based life cover as an augmented
product (RSA)
• SME and informal sectors
• Unit Trust product enhancement (MBCA)
• Enhancing Vanilla bank products
• Annuities as a form of saving
• Expanding delivery channels
• Innovation and customer focus
• Create positive perception through consumer
education and communication

7. Break with tradition
• doctors, lawyers and accountants have seen the
light
• The technology leap
• Banks have opened to the outside world
• the bank manager is no longer important
• Better settlement claim record
• service is as important as sales - skills

8. s
Strategies for Growth
• Integrated financial services - Allfinanz
• Assure banking
–Banks selling life, pension & other collective investment products
–Banks selling general insurance
–Insurance companies selling bank products
• Insurances to sell bank products to diversify and
get closer to clients – Europe & Asia
• Commoditization of sample financial services
• On-line selling

9. • any new channel should be cheaper and more
convenient
• Add fun and simplicity to products
• Complete financial adviser (lifetime partner)
• Explicit segmentation
– Mass market
– Private Bancassuarnce
– Corporate Bancassuarnce & SMEs
Growing Penetration

10. • any new channel should be cheaper and more
convenient
• Add fun and simplicity to products
• Complete financial adviser (lifetime partner)
• Explicit segmentation
– Mass market
– Private Bancassuarnce
– Corporate Bancassuarnce & SMEs
Growing Penetration