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Bancassurance Ghana 2015
Topic: Customer Perspectives
Speaker : Henry Manyo-Plange, Head of Bancassurance
Stanbic Bank, Ghana Limited
29th April 2015
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Discussion Points
• Why Bancassurance
• Customer Perspectives - What do the customers say
• Leveraging the Synergies
• Vulnerabilities and risks
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Bancassurance has been variously described as ;
The distribution of life insurance and other products through a
banks channels.
An arrangement in which a bank and an insurance company form a
partnership so that the insurance company can sell its products to
the bank’s client base.
A package of financial services which can fulfill both insurance and
banking needs at the same time.
4. Customer Perspectives –
Why Bancassurance? Significance for beneficiaries
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Market
Penetration
Geographical
reach
New & Wider
Product Range
Cost Savings &
Increased
Profitability
Reduced reliance
on traditional
channels
Insurer Additional
Income stream
Leverage
existing assets
Reduce
reliability on NII
Increase
customer
retention
Wider product
range
Bank
One-stop shop
Customer
Receive solutions
not products
Product/
Investment
Options
Cheaper Insurance?
7. Why do you procure your insurance from the bank?
• Like the fact that I can access insurance as well from the bank
• Relationship with the branch staff; ready advise and they understand me
• Trust the bank with my financial affairs/ keep my premium payments current
• Its cheaper to get my insurance from the bank
• I have options for investment and other insurance products
• Regular a/c transaction updates via SMS alerts, ATM, e-statements
* That was quick and smooth
** Your guys at the branch kept asking me to buy the insurance
*** About time you did something of value other than just taking fees
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8. Leveraging the Synergies - How should we respond?
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Customer
Experience
Distribution
Stakeholder
Engagement
Systems
Sales
Enablement
• Branch/Channel Sales
• Outbound/Dedicated
• Telesales/Call center
• Group Schemes
• Digital (Mobile, ATM,
online)
• Top Mgmt. Support
• Scorecards, KPIs
• Cultural Change
• Manufacturing
• Training (Right Sellers)
• Resources & Tools
• Campaigns Planning
• Motivation (R & R)
• Performance Management
• Lapse Management
• Real Time Alerts
• Documents, Statements
• Back office Integration
• Channel Enablement
9. Vulnerabilities and Challenges
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• Innovation - Needs-based not one-size-fits-all products
• Salesforce Qualification - Upskilling to be able to sell STI
• Integration – Closeness without integration
• Cultural differences between insurer and bank (Process TAT)
• Regulation
• Reputational Risk
10. Conclusion
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BancAssurance Ghana 2015
• Manage critical success factors
• Build strong relationships
No unique formula
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Thank you for your attention
Notas do Editor
It is quite clear therefore that immense opportunities are presented to both banks and insurance companies to come together and implement improvements as regards their operations and management styles, and as well confront and surmount the challenges inherent in forging the bancassurance marriage. In the end there are benefits for all involved least of whom is the customer.
Bancassurance enables banks to make the transition from a product-based approach to a solutions based approach to serving customers. Travel insurance bundled with Debit cards, life insurance bundled with savings account, motor insurance and assets insurance bundled with vehicle and asset finance products mortgage life etc., in the process providing products, services and solutions over the lifecycle of the customer thus ensuring customer loyalty.
Not from literature. Almost accidental
Customer Insights from Care calls at the beginning of the year. Wanted to use opportunity to generate warm leads, gather responses from over 3000 mass affluent customers. About 210 of them had insurance policies and therefore there was a follow-up question for them to tell us about their experience and what they perceived as value to them.
Understanding what our customers see as value within our bancassurance offering, create that value for them and manage it over time to create the loyal customer we ascribe to and achieve sustainability of our business. In the process we expect to achieve a differentiated bancassurance service from any others. (No me-too, also-ran).
Insight to help us to know what is important to our customer and then to help us refine How we go about delivering this value to our customer. Our focus is on creating a customer, an advocate someone who will promote. Peter Druker’s seminal book how to Deliver value to the customer
Understanding what our customers see as value within our bancassurance offering, create that value for them and manage it over time to create the loyal customer we ascribe to and achieve sustainability of our business. In the process we expect to achieve a differentiated bancassurance service from any others.
Having reviewed customers answers we are bound to agree with a management researcher (Ozevren 2002) who posited that the value of a product or service is the proportion of the benfit to the cost or price.
Stakeholder Engagement: Target setting, Scorecard, Performance tracking & KPI measurement.
Sales: Daily Discipline to achieve any results, Make sales a fun activity
Training: Training, Retraining, Test & Accredit. -No training no selling- Buddying, Coaching & Role Play, Ins. Principles, Product, Selling, Obj. Mgmt.
Resources & Tools: Marketing Collateral, Application & Proposal Forms, Reporting Templates, Sales Aids & Guides, Calculators, Rate Tables,
Campaign: Promotion, Leagues, Micro-Marketing activities
Motivation : Reward & Recognition: Commission structure (Retainer, purely variable or both), Incentive, (Naming & Shaming)/(Carrot & Stick)
Performance Management – MI, Scorecards, Tracking, Monitoring, daily weekly, monthly, Mid-stream Correction
Innovation: Most of the products are fairly standard with hardly any variation, even with bundling, HNWI covers
Salesforce; Centers of excellence/insurance kiosks etc. for complex products, short-term products
Integration: Systems to enable issuance of renewal notices, endorsement, policy covers, single capture of data.
Cultural differences: Insurer laid-back conservative, not commit marketing dollars, no sharing of data/records, archaic claims practices, do not factor TAT and processes at banks, Banks sales campaign cycles (multi-product) Call-centre capability and support
Insurance
Regulation/Legislation: Call-centre fulfillment-voice recording, e-signature, subsidiary companies or commercial business
No one unique formula for success : Must be managed like one would any other successful business would: Craft a compelling strategy and execute as a market-oriented customer-centric business would.
Build strong and dynamic relationships with the insurers that enables one to consistently deliver on the promises made to the clients.
Manage Critical success factors constantly: speed-to-market, deployment of technology, service measurement, staff productivity and KPIs, portfolio
We rarely succeed in anything if we are not enjoying doing it or having a good time while doing it, so HAVE FUN DOING IT
