BANCASSURANCE By: Dr. Steward Doss (National

Transcript:BANCASSURANCE By: Dr. Steward Doss (National:
BANCASSURANCE By: Dr. Steward Doss (National Insurance Academy) Issues concerning Banc assurance Growth of channel vs others Marketing- lack of awareness No exclusive channel- use of multi channel Identification and development of key personnel right from beginning- separate vertical Training by insurance companies periodically- not on products alone but whole financial market Infrastructure- open architecture- multiply tie-ups in zone C Service responsibilities- attitude-no responsibility on CIEs/CIPs- value added services Cultural incapability- lack of incentives and rewards Brand building through core service capability Product mix and customization of insurance products with core products of banks Ineffective use of customer data base STRENGTHS Large customer base Wider reach Banks command public trust/goodwill Human resources with banks Huge infrastructure Banks- single point financial/insurance solutions Value added services Brand images of banks and insurance companies Product diversification Low operational cost WEAKNESSES Mindset of the people Cultural incompatibility Lack of internal incentives and rewards Bond between banker and customer may weaken due to obligations Complex products and procedures Not effective use of bank data Lack of familiarity with insurance products OPPORTINITIES Falling interest rates resulting into reduced profit margins Additional revenue Limited investment options available in market Selling of simple insurance products across bank counter Tailor-made products Vast untapped market Cross-selling (Insurance + Banking) Redevelopment of staff and increased productivity IT infrastructure can be used for accessing banks database Capitalization of banks relationship for capturing under-served insurance market Leveraging banks relationship with corporate clients for pension and group insurance TREATS Conflict of interests between banks and insurance Rebating in insurance Channel conflict Ownership-customers Post-sales services expectations Expectations of banks Non-response from target customers THANK YOU