Bancassurance in Practice
Presented by: Khaled IbrahimPresented by: Khaled Ibrahim18-September-2011
Presenter Experiance and Profile
Sales Manager with wide experience in marketing of Insurance Products through Banks and Multi Distribution
Previous Experience
Current Position
Banks and Multi Distribution networks.
Worked with :•8 different banks.•Retail Brokers Experience
and HistoryPosition•Retail Brokers
•Insurance Agencies In 2 different countries in the Middle East.
2008 200920042002 2003 20062001
Page 2
Agenda
1 Bancauurance Advantages (Banks & Insurer)1 Bancauurance Advantages (Banks & Insurer)
2 Bancassurance Product Mix
3 Bancassurance Channels3 Bancassurance Channels
4 Bancassurance Sales Culture in Banks
5 Bancassurance Sales Model (KSA, Egypt & Call Center)5 Bancassurance Sales Model (KSA, Egypt & Call Center)
6 Training
7 Bancasuurance Project Plan
8 Key Factors for Bancassurance Success
9 Ideal Attributes in Insurance Partner for Banks
Page 3
Agenda
1 Bancauurance Advantages (Banks & Insurer)1 Bancauurance Advantages (Banks & Insurer)
2 Bancassurance Product Mix
3 Bancassurance Channels3 Bancassurance Channels
4 Bancassurance Sales Culture in Banks
5 Bancassurance Sales Model (KSA, Egypt & Call Center)5 Bancassurance Sales Model (KSA, Egypt & Call Center)
6 Training
7 Bancasuurance Project Plan
8 Key Factors for Bancassurance Success
9 Ideal Attributes in Insurance Partner for Banks
Page 4
Bancassurance Advantages (Insurer’ s perspective)Ef
fort
s an
d
Com
plex
ity
•Low costs, high volume
distribution system which
Effo
rts
and
Co
mpl
exity
•Low acquisition
• New and wide
customers database
•Using product
distribution system which
provides for rapid market
penetration.
•Low acquisition
cost
•Typical
penetration:
•Using product
tailoring to foster
innovation
• Decrease lapses
•Strong sales control and
more accurate prospect
targeting.
Cross SellBancassurance
LineBancassurance as a
Change AgentEmbedded Value Impact
5-10%
Page 5
Line Change Agent
Bancassurance Advantages (Bank’ s perspective)Bancassurance Advantages (Bank s perspective)Ef
fort
s an
d
Com
plex
ity
•Bank becomes true financial
supermarket – product range,
Effo
rts
and
Co
mpl
exity
•Revenue opportunity
•Brings in sales
culture at branch
supermarket – product range,
sales and service culture.
•Customer entrenchment like never •Revenue opportunity
– cumulative,
predictable
•Customer retention.
level
• Cascades into all
other product sales
before – 10 to 15 years committed
savings
•Self feeding revenue cycle
Cross SellBancassurance
LineBancassurance as a
Change AgentEmbedded Value Impact
•Self feeding revenue cycle
•Value beyond traditional bank
Page 6
Change Agent
Agenda
1 Bancauurance Advantages (Banks & Insurer)1 Bancauurance Advantages (Banks & Insurer)
2 Bancassurance Product Mix
3 Bancassurance Channels3 Bancassurance Channels
4 Bancassurance Sales Culture in Banks
5 Bancassurance Sales Model (KSA, Egypt & Call Center)5 Bancassurance Sales Model (KSA, Egypt & Call Center)
6 Training
7 Bancasuurance Project Plan
8 Key Factors for Bancassurance Success
9 Ideal Attributes in Insurance Partner for Banks
Page 7
Placeholder for your own sub headlineBancassurance ProductsPlaceholder for your own sub headline
Corporate Non Life
Bancassurance ProductsProduct Description
Life
Corporate Life
All(Pure Protection)
Group Life (Pure Protection) Group Retirement (Saving +
Complementary Products
Core Products
Group Retirement (Saving + Protection) with your own text.
Motor All Risks ( Pure Protection)
Motor TPL (Pure Protection)
Customer
Retirement (Saving + Protection)Education (Saving + Protection)Wedding (Saving + Protection)
Motor TPL (Pure Protection)Travel Insurance (Pure
Protection)Personal Accident (Pure
Protection) Level Term (Pure Protection) Customer
RelationshipManagement &Products
Offering
Level Term (Pure Protection)
Page 8
Agenda
1 Bancauurance Advantages (Banks & Insurer)1 Bancauurance Advantages (Banks & Insurer)
2 Bancassurance Product Mix
3 Bancassurance Channels3 Bancassurance Channels
4 Bancassurance Sales Culture in Banks
5 Bancassurance Sales Model (KSA, Egypt & Call Center)5 Bancassurance Sales Model (KSA, Egypt & Call Center)
6 Training
7 Bancasuurance Project Plan
8 Key Factors for Bancassurance Success
9 Ideal Attributes in Insurance Partner for Banks
Page 9
Comb Chart 4Bancassurance Channels Placeholder for your own sub headline
2
Bancassurance Channels Movement To Multi Channel
2
Creditors,
Loan channels 3
Telemarketing
7
Elegant Advice
Simple Products; Travel, PA, etc...
Wealth Management
46
TelemarketingElegant Advice
1
Moderate AdviceRelationship
Officer
PA, etc...
OTC Products 46
Corporate
Clients
Low Advice
Face to Face 5
Worksite Marketing for
OfficerOTC Products
Marketing for Corporate Clients
Including Seminar Selling
Page 10
Call Center process for Travel Insurance with BSF
Page 11
Agenda
1 Bancauurance Advantages (Banks & Insurer)1 Bancauurance Advantages (Banks & Insurer)
2 Bancassurance Product Mix
3 Bancassurance Channels3 Bancassurance Channels
4 Bancassurance Sales Culture in Banks
5 Bancassurance Sales Model (KSA, Egypt & Call Center)5 Bancassurance Sales Model (KSA, Egypt & Call Center)
6 Training
7 Bancasuurance Project Plan
8 Key Factors for Bancassurance Success
9 Ideal Attributes in Insurance Partner for Banks
Page 12
Bancassurance Sales Culture in BanksBancassurance Sales Culture in Banks
Phase 3Phase 4 EngrainedPhase 3Proactive customer – pull strategy.All staff skilled to need based selling.Motivational sales leadership.Staff buy-in.Results and quality soar.
Phase 4Sales behavior constantly exhibited.Continuous business growth.Customer focused structures and processes.Innovative leadership keeps motivation high.Fully harmonized distribution strategy.
Cu
sto
mer
Fo
cuse
d Results and quality soar.New distribution channels explored.Customer perception improve.
Fully harmonized distribution strategy.High level of repeat business.Customers become advocate.
Cu
sto
mer
Fo
cuse
d
Ski
lled
Phase 1Low sales motivationPoor sales skills
Phase 2Tougher management and targets.Hard sell techniques.Result improve, but still under achieving.
Cu
sto
mer
Fo
cuse
d
Driven Ski
lled
Poor sales skillsSelling Packaged products.Minimal Results.Numerous lost opportunities.No sales culture.
Result improve, but still under achieving.Proactive product – push strategy.Poor quality leads, low conversion andpersistency.Growing customer dissatisfaction.
Page 13
Growing customer dissatisfaction.
Pro-Activity
Agenda
1 Bancauurance Advantages (Banks & Insurer)1 Bancauurance Advantages (Banks & Insurer)
2 Bancassurance Product Mix
3 Bancassurance Channels3 Bancassurance Channels
4 Bancassurance Sales Culture in Banks
5 Bancassurance Sales Model (KSA, Egypt & Call Center)5 Bancassurance Sales Model (KSA, Egypt & Call Center)
6 Training
7 Bancasuurance Project Plan
8 Key Factors for Bancassurance Success
9 Ideal Attributes in Insurance Partner for Banks
Page 14
Bancassurance Model in KSA (Agency Agreement)
Area ManagerArea ManagerHead of SalesHead of SalesBancassurance Bancassurance
Area Manager
AzSFAzSFBankBankAgencyAgency
Area ManagerArea Manager
Branch ManagerBranch Manager
Head of SalesHead of SalesBancassurance
MangerBancassurance
Manger
BancassuranceAssistant
BancassuranceAssistant
Area ManagerManaging 6-9 Branches Insurance
Coordinator
Agency’ s RO RO
Insurance Coordinators (IC) Agency’ s
ICRO RO(IC)
Managing 6-9 Branches
RO
Page 15
CSO CSO CSO CSO
11 22 33 44
Bancassurance Model in Egypt (Partnership Agreement)
BranchBranch BancassuranceBancassuranceBRE BRE 1 BRE
AzLEAzLE BranchBranch BankBankBranch
ManagerBranch
Manager
SuperviserSuperviser
BancassuranceManager
BancassuranceManager
BRE BRE
Area Superviser
Area Superviser
1 BREBank Relationship Executive
Product Assistant Product
Assistant
AZLEIS
CRO CROInsurance Specialists (IS)
Area Supervisor 1 AS every 10 Branches
CROISSpecialists (IS)
& Insurance Coordinators (IC)At lease 1 IS/IC in
CRO
Teller Teller Teller Teller
every 2 branches
Page 16
Teller Teller Teller Teller
11 22 33 44
Agenda
1 Bancauurance Advantages (Banks & Insurer)1 Bancauurance Advantages (Banks & Insurer)
2 Bancassurance Product Mix
3 Bancassurance Channels3 Bancassurance Channels
4 Bancassurance Sales Culture in Banks
5 Bancassurance Sales Model (KSA, Egypt & Call Center)5 Bancassurance Sales Model (KSA, Egypt & Call Center)
6 Training
7 Bancasuurance Project Plan
8 Key Factors for Bancassurance Success
9 Ideal Attributes in Insurance Partner for Banks
Page 17
Puzzle ChartPlaceholder for your own sub headlineBancassurance Training ModulesPlaceholder for your own sub headlineBancassurance Training Modules
Induction Courses:
Lead Generators.
Customer Relationship OfficersCustomer Relationship Officers
Supervisors and Branch Managers
Motivation and On the job training:
Sales Process coachingSales Process coaching
Closing and objection handling.
Page 18
Agenda
1 Bancauurance Advantages (Banks & Insurer)1 Bancauurance Advantages (Banks & Insurer)
2 Bancassurance Product Mix
3 Bancassurance Channels3 Bancassurance Channels
4 Bancassurance Sales Culture in Banks
5 Bancassurance Sales Model (KSA, Egypt & Call Center)5 Bancassurance Sales Model (KSA, Egypt & Call Center)
6 Training
7 Bancasuurance Project Plan
8 Key Factors for Bancassurance Success
9 Ideal Attributes in Insurance Partner for Banks
Page 19
Bancassurance project Plan
1. Confidentiality Agreement-To be signed before entering into the Project phase
2. Products to be Promoted3. Business Plan 3. Business Plan
Average Number of Sales per BranchAverage Premium per policy Achieved ANP Per YearBank Revenue Three-Five year PlanThree-Five year Plan
4. Fees Schedule5. Bancassurance Agreement
Steering Committee Steering Committee Roles and Responsibilities of the Bank, Agency and the Insurance Company (SLA)Exclusivity -if possible.Term of Contract- 3 to 5 years renewable. Distribution of Marketing Costs- equally split.
6. Direct Debit/ Documentation Procedure7. Marketing & Communication Strategy – Cobranded 8. Training9. Launching
Page 20
9. Launching
Agenda
1 Bancauurance Advantages (Banks & Insurer)1 Bancauurance Advantages (Banks & Insurer)
2 Bancassurance Product Mix
3 Bancassurance Channels3 Bancassurance Channels
4 Bancassurance Sales Culture in Banks
5 Bancassurance Sales Model (KSA, Egypt & Call Center)5 Bancassurance Sales Model (KSA, Egypt & Call Center)
6 Training
7 Bancasuurance Project Plan
8 Key Factors for Bancassurance Success
9 Ideal Attributes in Insurance Partner for Banks
Page 21
Key Factors for Bancassurance Success
1 Alignment between partners on strategic goals
2Commitment to joint projects and focus on long-term relationship
Integration of operations–appropriate premium
2
345
Integration of operations–appropriate premiumcollection methods
Product designs to meet clients 'needs and complement bank products
5
6
Effective enrollment and administration
High quality sales training, servicing, salesincentives and motivation.incentives and motivation.
Page 22
Agenda
1 Bancauurance Advantages (Banks & Insurer)1 Bancauurance Advantages (Banks & Insurer)
2 Bancassurance Product Mix
3 Bancassurance Channels3 Bancassurance Channels
4 Bancassurance Sales Culture in Banks
5 Bancassurance Sales Model (KSA, Egypt & Call Center)5 Bancassurance Sales Model (KSA, Egypt & Call Center)
6 Training
7 Bancasuurance Project Plan
8 Key Factors for Bancassurance Success
9 Ideal Attributes in Insurance Partner for Banks
Page 23
Ideal Attributes In Insurance Partner for Banks
4. Strong IT system. 1. Local experience 7. Bancassurance
Banks are looking for the following:
4. Strong IT system.
5. Compensation and reward.
6. Understanding
1. Local experience of insurance partner.
2. Detailed sales processes.
3. Sales
7. Bancassurance related training programs.
8. Multi channel capacity.6. Understanding
bank culture.3. Sales management process and ability.
9. Channel conflict management.
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