overcoming mindset differenceswinning strategies in bancassurance overcoming mindset differences...

Winning strategies in Bancassurance

Overcoming Mindset Differences

Manoj Kumar, Chartered Insurer

ACII (UK), CPCU (USA), ARe (USA), ARM (USA), FIII (India). MBA

Email: manoj@einsuranceprofessional.com

Strategy

Winning Strategies in Bancassurance 2

Bancassurance: Forces at work

Bancassurance

Banks

Insurers

Regulators

Customers

Winning Strategies in Bancassurance 3

Agenda

Bancassurance – Forces at work

Goal Congruence

Right Partner – selection process

Right Product

Right Distribution Channel

Change Management – overcoming mindset differences

Doha Bank Case Study

Challenges

Winning Strategies in Bancassurance 4

Goal Congruence

Customers

Insurers

Banks

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Right Partner

• For Insurance Companies

– Bank with a substantial customer base

– Good brand equity

– Long term commitment

– Ready to commit resources

• IT Solutions

• Marketing

– Exclusivity

Examining Bancassurance

Right Partner

• For Banks

– Reputed Insurer

– Creativity / Product Innovation

– Product exclusivity

– Long term commitment

– Ready to commit resources

– High commission

Examining Bancassurance

Partner Selection Process

Examining Bancassurance

Vision Objective

Setting

Customer Segmentation

Product Selection

Partner Selection

Bank

Right Product

Depends on the following factors: Bancassurance Life Cycle

Early, Youth, Matured

Customer Segment

Retail, Corporate

Customer Profile

Age, Wealth, Socio-economic Background

Distribution Channels

DM, CC, Branch Network, Direct Sales

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Right Product

Products as per Bancassurance Life Cycle

Early Stage: PA, Home, Travel, Car

Youth Stage: Child Education

Pension Plans

Growth Plans

Matured Stage: Bonds

Mutual Funds

Structured Products

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Product Mix

Segment-wise Product Mix Retail Customers

Homeowners’ Motor Travel Medical Investment Products

Corporate Customers Fire Engineering Marine

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Product Matrix

Type of Products

Bancassurance Life Cycle

Early Youth Mature

Simple Products √ √ √

Complex Products √ √

Structured Products √

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Right Distribution Channels

• ATM

• Statements

• Inbound Tele-calls

• Direct Mailers

• OTC - Branches

• Platform Banking

• E-Insurance

• Direct Sales

Examining Bancassurance

Convergence

Best Practices in Bancassurance 14

Managing Change

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Managing Change

Issues – Insurance not a Core Function

– Profit Centre concept

– Resistance to process change

– Doubts over management’s intention and future move

– Performance appraisal

– New reporting structure

– Career growth

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Managing Change

• John Kotter’s 8 steps to successful change – Increase urgency – inspire people

– Build the guiding team – right people

– Get the vision right – simple vision & strategy

– Communicate – de-clutter communication

– Empower action – remove obstacles, training

– Create short-term wins – set easy goals

– Don't let up – ongoing change

– Make change stick – make it a culture

(Leading Change – 1995 by Kotter)

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Managing Change

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Doha Bank

• Leading Qatari Bank (rated A- by S&P)

– International presence

– Winner of several awards

• Set up Bancassurance unit in Sept 2004

• Customer-centric products

• Life as well as general products

• Innovation – product development

• Multiple distribution channels

• Skilled personnel

• Multiple providers

• From distributor to risk taker

• Set up Doha Bank Assurance Company in 2008

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Challenges Ahead!

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Challenges Ahead

From a Banker

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Challenges Ahead

To become a Financial Consultant

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Challenges Ahead

From a Seller

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Challenges Ahead

To a Marketer

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Challenges Ahead

From a Broker

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Challenges Ahead

To Risk Taker (Insurance Company)

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