Presentation on

Bancassurance

BY

RAHUL KAPOOR A 13
SWATIKA MURIA A14
JASPREET SINGH A16
 Introduction

'Bancassurance', is the term used to describe the

partnership or relationship between a bank and an
insurance company whereby the insurance company
uses the bank sales channel in order to sell insurance
products.

It allows the insurance company to maintain smaller

direct sales teams as their products are sold through
the bank to bank customers by bank staff.
 Banc assurance Strategy- Key Steps

 ANALYSE AND CHOOSE TARGET SEGMENT

 Analyse existing customer profile & market potential
 Assess the assumptions about various segments

 FOCUS ON CUSTOMER NEEDS

 Provide easy-to-understand solutions with convenience

 Meet the needs of each segment – design the product

accordingly
 Vast potential for ‘wealth Management’ by banks

 PRODUCT INNOVATION
 Design simple and easy to understand products
 Customer need centric
 Strategies Conti..d

 PRODUCT DELIVERY / DISTRIBUTION

 Utilize branch network for selling insurance products
 Value addition by leveraging systems and distribution channels like
ATMs /Internet/kiosks etc.

 DEVELOP A BRAND STRATEGY

 Bank on the public opinion about traditional banks – “Trustworthy &
Accessible”
 Develop a holistic brand strategy
 Enhance multiple distribution channels – ATMs, Web Banking etc.
 Maintain relational database to develop appropriate products

 Human Resource – selection, training and motivation

 Develop a comprehensive compensation and incentive package
 Bancassurance scenario in India

 Increasing competition and thinning spreads – necessitated a

search for new avenues of income streams
 Bancassurance – a logical step
 RBI’s entry guidelines for banks to diversify into insurance
business
 Joint ventures with risk participation – financially strong
banks
 Commercial banks as corporate agents of insurance
companies – fee basis with no risk participation
 Advantages to Banks

 Enhanced business opportunities

 Improved incomes– leads to increase in return
on assets
 Better customer service- resulting in higher
customer retention levels
 Cross sell insurance products – leverage on
face-to-face contacts with the customer in the
branches
 Advantages to Customers

 Comprehensive financial advisory services –

banking and insurance – under one roof

 Enhanced convenience – better follow-up and

hassle free after sales service

 Easy access for claims – regular visit to banks for

other purposes

 Availability of better product range

 Advantages to Insurers

 Access to the wide network of branches for

distribution of insurance products
 Penetration into untapped segments like rural
population through the vast network of bank
branches in rural areas
 Customizing products using bank’s customer
database to analyze customers’ financial standing,
spending habits, investment and purchase capability
 Banks have already established long standing
relationship with customers – it is easier for them to
sell insurance products
 FUTURE OUTLOOK

 Entry of big players – life and non-life segment

– immense competition – Better deal for the
customers
 Collaboration of ‘banks’ and ‘insurance
companies’ will have profound impact on
financial services industry – enhanced customer
satisfaction
 Vast potential for banks and insurance
companies to partner and develop the ‘under
insured’ market in India.
 Standard Chartered Bank – Largest Foreign Bank in India

 Catering to the High Net Worth clients and the Mass Affluent’

 83 Branch Offices with presence in 25 cities

 Customer Base of 2.50 million

 Deposit Base of over Rs. 135 billion (USD 3 bn)

 Client Habits : Savvy Customer Base with both high branch traffic and
Off-Site Banking habits.

 Joint operations were rolled out in January 2002 with 25 FSCs covering 30
Bank Branches.
 MODEL

 A designated persons stationed in each Branch selling

Insurance.
 Selling through various Channels of Distribution :-
Branch Banking, Priority Banking,
Outbound Sales Team, Mortgages,
Credit Cards etc
 Over 250 Sales Staff dedicated to selling Insurance in
these Distribution Channels
 Dedicated Operation Staff for processing Standered
Charted Bank Proposals.
 CONCLUSION

 The Benchmark for the Indian Industry for

Bancassurance.
 Bancassurance contributesd 20% of total income from
Retail Banking operations.
 Average Productivity per person is over 12-15 policies
per month
 Projected GWP of USD 100 million for FY 2011-2012
& earnings to Bank to be in range of USD 25-30
million.
 Regular Unit Linked Products fit in the clients needs
of the Bank.
Thank you
ANY QUESTIONS??