overcoming mindset differenceswinning strategies in bancassurance overcoming mindset differences...
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Winning strategies in Bancassurance
Overcoming Mindset Differences
Manoj Kumar, Chartered Insurer
ACII (UK), CPCU (USA), ARe (USA), ARM (USA), FIII (India). MBA
Email: [email protected]
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
Winning Strategies in Bancassurance 5
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
Winning Strategies in Bancassurance 10
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
Winning Strategies in Bancassurance 15
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
Winning Strategies in Bancassurance 16
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
Winning Strategies in Bancassurance 18
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!
Winning Strategies in Bancassurance 20
Challenges Ahead
From a Banker
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Challenges Ahead
To become a Financial Consultant
Winning Strategies in Bancassurance 22
Challenges Ahead
From a Seller
Winning Strategies in Bancassurance 23
Challenges Ahead
To a Marketer
Winning Strategies in Bancassurance 24
Challenges Ahead
From a Broker
Winning Strategies in Bancassurance 25
Challenges Ahead
To Risk Taker (Insurance Company)
Winning Strategies in Bancassurance 26
Winning Strategies in Bancassurance 27