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Bancassurance in Practice Presented by: Khaled Ibrahim Presented by: Khaled Ibrahim 18-September-2011
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Page 1: Bancassurance in Practice [Compatibility Mode]

Bancassurance in Practice

Presented by: Khaled IbrahimPresented by: Khaled Ibrahim18-September-2011

Page 2: Bancassurance in Practice [Compatibility Mode]

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

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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

Page 4: Bancassurance in Practice [Compatibility Mode]

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

Page 5: Bancassurance in Practice [Compatibility Mode]

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

Page 6: Bancassurance in Practice [Compatibility Mode]

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

Page 7: Bancassurance in Practice [Compatibility Mode]

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

Page 8: Bancassurance in Practice [Compatibility Mode]

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

Page 9: Bancassurance in Practice [Compatibility Mode]

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

Page 10: Bancassurance in Practice [Compatibility Mode]

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

Page 11: Bancassurance in Practice [Compatibility Mode]

Call Center process for Travel Insurance with BSF

Page 11

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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

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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

Page 14: Bancassurance in Practice [Compatibility Mode]

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

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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

Page 16: Bancassurance in Practice [Compatibility Mode]

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

Page 17: Bancassurance in Practice [Compatibility Mode]

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

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Page 18: Bancassurance in Practice [Compatibility Mode]

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.

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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

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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

Page 21: Bancassurance in Practice [Compatibility Mode]

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

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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.

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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

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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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