Post on 14-Jul-2015
aegon.com
Bancassurance Retail Strategy Pitfalls in choosing the right approach to a lasting marriage
Gijs Jeuken CEO Aegon Life Ukraine
CIS Bankers Conference – Kiev June 2013
Overview of Aegon worldwide
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AEGON at a glance
25,000 EMPLOYEES
PENSIONS ASSET MANAGEMENT
+20 markets THROUGHOUT AMERICA, EUROPE AND ASIA
Life insurance
Underlying earnings before tax in 2012
EUR 1.8
billion
Revenue-generating investments
EUR 458
billion1
1) As per Dec 31, 2012
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Aegon CEE
Aegon Presence in CEE
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Focused 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%
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Banc assurance partnerships
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Aegon Life Ukraine
Main partners Products
VTB bank cash loans
Credit Agricole Bank cash loans
Oschadbank mortgages
Creditprombank mortgages
Khreschatyk mortgages
Raiffeisen Bank Aval mortgages
Credit Dnepr Bank cards
Finances&Credit mortgages
Erste 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 mortgage
clients.
Bancassurance – the revenue stream of the future
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Structure of the banks’ income – worldwide trends
In mature markets, commission from insurances sales is a major income source for banks
41%
Emerging markets
Pre-mature (new)
markets Mature markets
Loans
Current accounts & deposits
Investments
RU, UA, SM, BH, AL, KO,
BY
PL, CZ, SK, HR, SL HU,
RO, BG
A, D, F, E, B, S, CH, I,
DK
3,2% 6,5%
Insurance
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Bancassurance - the answer to all players’ needs
Banks
§ New income source to compensate for the decreasing margins and slowing down of the
lending 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 shop
Insurers
§ Access to quality portfolio of clients and to professional sales force;
§ Long term stability and growth
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Ukrainian market developments
Crisis 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 Marketing
Insurers
§ consolidating in the Life Insurance sector
§ dichotomizing in the non-Life sector
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Aegon banc assurance frameworks
Partnership
Bank Insurer
Clients
Products
Product
portfolio
Joint venture
Capital Capital
Products
§ A balanced long-term relationship between bank and insurer § Different models needed for different perspectives
Ø Depends on partner’s strategic approach, commitment, duration, market practice and regulatory framework
Bank Insurer
JV
Clients
Spain Poland Hungary Romania Romania* * AEGON’s JV with Banca Transilvania changed into a partnership as per January 2009
Turkey
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After sales support of bancassurance clients
working hours of contact center
MON-SAT 08:00 – 21:00
HOTLINE 0 800 500 525
SKYPE aegon_life
EMAIL (SERVICE DESK)
client_service@aegon.ua
FEEDBACK FORM www.aegon.ua
PERSONAL ACCOUNT my.aegon.ua
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The right solution for each client segment
• Private banking: Ø Multifund Single Premium
Ø >30 investment funds available Ø Successful model and product available in Poland, Hungary and in Romania
§ Individuals: Ø Guaranteed savings product, regular premium Ø Simple investment product, low risk investment strategies Ø Successful model and product available in Romania
§ Explore the future: Ø Address mass clients from Call Centre, with easy-to-sell solutions Ø Successful model and product available in Poland, product available in Romania
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§ These are the times where Banks are in a strong negotiation position, but it is not only 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 administrative burden 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 the right 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
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Bank
Clients
Employees
Together, 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)
aegon.com
Thank you