The document outlines the agenda for a discussion on bancassurance. It provides background on bancassurance including its origins in France in the 1980s and introduction to India in 1999. It describes the evolution of bancassurance as a way for banks to address pressures around customer retention, staff retention, universal banking, and optimizing resources. For insurers, bancassurance provides benefits like channel diversification, access to customers, geographical reach, and establishing a sales-focused culture. The document then characterizes bancassurance as a win-win situation for both banks and insurers and outlines different distribution models including integrative, specialist, and financial planning. It closes with a discussion of distribution channels and a
1. AGENDA
Bancassurance – History
Bancassurance – Evolution
Bancassurance – A Win Win Situation
Bancassurance – Distribution Models
Bancassurance – Distribution Channel
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2. Bancassurance - History
Originated in France in 1980s
Spread rapidly across Europe
Introduced in India in 1999
Opening up of insurance industry
20 new companies
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3. Bancassurance - Evolution
Pressures on Banking Sector:
Customer retention in the face of competition
Staff retention and motivation
Universal Banking- approach to provide all
financial product under one roof ; a broader
relationship approach
Optimum utilisation of infrastructure and
resources- maximise revenue
3
4. Bancassurance - Evolution
Pressures on Insurance Sector:
Channel diversification from traditional direct
sale
Access to a high quality customer base
Achieve the geographical reach within minimum
time and cost
Ensure higher probability of success in the sales
process
4
6. Bancassurance
– A Win Win Situation
The provision of insurance and
banking products and services through
a common distribution channel or to a
common client base.
6
7. Bancassurance
– A Win Win Situation
Bank Insurance Company
Customer retention Revenue and channel
diversification
Satisfaction of more financial Quality customer access
needs under the same roof
Revenue diversification Quicker geographical reach
More profitable resource Creation of brand equity
utilisation
Enriched work environment Leverage service synergies with
Bank
Establish sales orientated culture Establish a low cost acquisition
channel 7
8. Bancassurance
- Distribution Model
Integrative / Generalist Model
Specialist Model
Financial Planning Model
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9. Bancassurance
- Distribution Model
Integrative / Generalist Model
Product distribution through existing bank
channel
Bankers themselves sells the product to
customer
Process managed by banks and insurer act as
only product/service provider
e.g. Telemarketing, direct mail 9
10. Bancassurance
- Distribution Model
Specialist Model
Distributes insurance product through generally
employees or representatives of the insurance
company
Bankers help to identify the prospects who
further contacted by insurance professionals
Requires less training and higher compensation
to support the referral process
It lengthens the process of sale
10
11. Bancassurance
- Distribution Model
Financial Planning Model
Insurer employs sales force and deploys them at
bank branches
Quick to implement as compare to other models
Bank as introducer, insurer sales force as
converters
Offers each customer and prospect a full
financial planning package addressing all of the
individual's financial concerns
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12. Bancassurance
- Distribution channels
Career Agents
Special Advisers
Salaried Agents
Bank Employees / Platform Banking
Corporate Agencies and Brokerage Firms
Direct Response
Internet
e-Brokerage
Outside Lead Generating Techniques
12
13. Product- Sales approach
High value Low Value
Customer type
Low volume High Volume
High
• Private Banking
Full Service • Investment
advice
• Estate Planning
• Portfolio
management
Distribution- Value Add
including
Full advice insurance
planning
(Financial
• Investment advice
Advisor) • Needs based selling
• Ongoing relationship
management
• Customised
Limited advice insurance plans
(Life agent) • Income
protection
• Savings
No advice • Segment specific • Segment specific • Segment • Segment
features features specific features specific
(direct)
Low
features
Customised Product Complexity Commodity
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14. SWOT Analysis
Strengths
Vast untapped market
Huge pool of skilled professionals
14
15. Contd….
Weakness
Lack of networking among bank branches
Saving Ability of Middle Class
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16. Contd….
Opportunities
Data mining
Banks have a huge customer database which
has to be properly leveraged. Target segments
should be identified and tapped.
Wide distribution networks of banks
Exploit the corporate customers and tie - up for
insurance of the employees of corporate clients.
16
17. Contd….
Threats
Human Resource Challenges
Non-response from the target groups
can also pose a challenge.
17