BANCASSURANCE IN THE REGION OF FORMER YUGOSLAVIA.
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Transcript of BANCASSURANCE IN THE REGION OF FORMER YUGOSLAVIA.
Outline
1. Why bancassurance?
2. Market overview – Austria, Slovenia, Croatia, Serbia
3. Case studies – Serbia & Macedonia
4. Roadmap of bancassurance
5. Best practice
Why bancassurance?Reasons for the INSURER
Increase of sales: Life insurance Property insurance
Increase of revenues
Better market positioning
Extension of services
Extension of target group
Reasons for the BANK
Extension of bank’s services
Better market positioning
“Risk-free” increase of revenues
Increase of bank deposits in terms of reinvestment
Increase revenue from fees charged for payments
Loan repayment security in the case of death
Loan repayment security in the case of loss of property
AUSTRIA
Own sales network; 14.30%
Agencies; 2.70%
Brokers; 13.40%
Bankassurance; 64,80%
Other; 4.80%
Life InsuranceOwn sales network; 35.00%
Agencies; 12.80%Brokers;
39.40%
Bankassurance; 5,50%
Other; 7.30%
Non-life insurance
NON-LIFE MARKET
Group accident / Group health / Travel insuranceProperty – Home / Household insurance, SME
LIFE MARKET
CPI – Death, Permanent Total Disability , Temporarily Total DisabilityTraditional Life insurance – Endowment, Unit-linked + riders (primarily Accident)
SLOVENIA
Own sales network; 2.30%
Agencies; 60.30%Brokers; 9.60%
Bankassurance; 5,40%
Other; 22.40%
Life InsuranceOwn sales network; 27.90%
Agencies; 65.40%
Brokers; 4.60%
Bankassurance; 0,50%Other; 1.60%
Non-life insurance
LIFE MARKET
CPI – Death, Permanent Total Disability , Temporarily Total DisabilityTraditional Life insurance – Endowment, Unit-linked + riders (Accident, Dread Disease)
NON-LIFE MARKET
Group accident / Group health / Travel insuranceProperty – Home / Household insurance, SMECar – MTPL, Casco
CROATIA
Own sales network; 40.20%
Agencies; 41.60%
Brokers; 1.50%
Bankassurance; 16,10%
Other; 0.60%
Life Insurance
Own sales network; 72.40%
Agencies; 21.30%
Brokers; 2.20%
Bankassurance; 1,60% Other; 2.50%
Non-life insurance
NON-LIFE MARKET
Group accident / Group health / Travel insuranceUnemploymentProperty – Home / Household insurance, SMECar – MTPL, Casco
LIFE MARKET
CPI – Death, Permanent Total Disability , Temporarily Total DisabilityTraditional Life insurance – Endowment, Unit-linked + riders (Accident, Dread Disease)
SERBIA
NON-LIFE MARKET
Group accident / Group health / Travel insuranceUnemploymentProperty – Home / Household insurance, SME, Industry
LIFE MARKET
group life not allowed
Own sales net-
work; 32.60%
Agencies and
brokers; 65.20%
Bankassurance; 2.20%
Life Insurance
Own sales networkAgencies and brokersBankassurance
Own sales network; 40.50%
Agencies and brokers; 28.60%
Bankassurance; 2.10%
Special purpose entities (Vehicle
inspection); 28,80%
Non-life insurance
MacroeconomicsMACEDONIASERBIA
Population 7.181.505 (Census 2012)
Active populationEmployed
Around 2,200,000 Around 1,700,000
Number of unemployed 792,344
Average salary 385 EUR
Average pension 200 EUR
Average debt per capita 818 EUR
Average savings per capita Around 45 EUR per month
Number of banks 30
Number of insurance companies
28 (life and non-life)
Average insurance premium per capita
75.5 EUR
Average non-life insurance premium per capita
Around 60 EUR
Average life insurance premium per capita
Around 12 EUR
Population 2,045,262 (Census 2002)
Active population 637,855 (2011)
Number of unemployed 294,963Average salary 360 EURAverage pension 144 EURAverage debt per capita 650 EURAverage savings per capita Around 40 EUR per month
Number of banks 16 + 4 savings banksNumber of insurance companies
14
Average insurance premium per capita
56 EUR
Average non-life insurance premium per capita
Around 50 EUR
Average life insurance premium per capita
Around 5 EUR
Serbia
Focus of the project group accidental insurance incl. death from sickness CPI for pensioners’ loans
partner OPPORTUNITY Bank, Novi Sad start of project: May 2011 Development of insured:
6-20
11
7-20
11
8-20
11
9-20
11
10-2
011
11-2
011
12-2
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1-20
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12
5-20
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6-20
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7-20
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8-20
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9-20
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11-2
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12-2
012
1-20
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2-20
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4-20
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0
1000
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7000
Macedonia
Focus of the project group life insurance
Death from accident/sickness Permanent Total Disability Total and Irreversible Loss of Abilities
CPI for all sorts of loans partner OHRIDSKA BANKA SOCIETE GENERALE Bank, Skopje start of project: January 2013
January February March April May June July August September October November December0
50
100
150
200
250
ROADMAP
RoadmapHIGH
involvment of sales force
training intensive
LOWinvolvment of
sales force„easy to sell“
LOWpremium /
commission margin
HIGHpremium /
commission margin
group accident / travel insurance
property / car / SME / UE
risk life
traditional lifeC
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Technical Support
Sales Processes WEB-portal (info on products, application form data, premium calculation, health
questions, acceptance,…) Production reports (daily, weekly, monthly + specific campaigns) incorporation of premium calculation and underwriting (health
declaration/questionnaire) into bank‘s software and processes
Policy issuing process electronic data transfer bank-insurer (WEB-portal or incorporated software) underwriting with fast response rates – feed-back on acceptance policy issuing to bank and/or policyholder
Ongoing business processes payment procedures – standing orders/direct debit reminder/cancellation procedures
Sales Force Trainings and Support
Centralized and on-site trainings trainers provided by insurer advisors/mentors per branche office e-learning product trainings – hard skills sales skills trainings – soft skills expert trainings (claims handeling, prevention of cancellations/surrenders/…) dedicated sales trainings (e.g. best sellers club)
Call centers / Support centers claims handling clarification and conciliation for on-site questions by sellers or customers
Marketing
Marketing material Insurer's image brochure give aways ATM advertising banners on web-sites intranet-promotions
Branch Marketing co-branded posters / flyers within branch offices dedicated co-branded sales desks
Product Marketing co-branded posters / flyers within branch offices sales tools – FAQ, „reasons to buy“, underwriting guidelines
Incentives remuneration/commission paid to sales force competitions: best sales persons‘ reward, co-organized events/trips
Side Business
Commission schemes clear definitions per product / product line
Incentives profit sharing bonus commission schemes
Bank to act as Depot bank for the respective investment portfolios
Premium collection / recommendation to insurers existing clients