2012-01-05-奥纬咨询-The_New_World_of_Bancassurance_6页_228kb

Bancassurance Analysis and Summary

Introduction:
The 2008 financial crisis significantly impacted the bancassurance industry, particularly its reliance on single premium investment products. Historically, partnerships between banks and insurers were a major sales channel for life insurance, leveraging complementary sales opportunities (e.g., mortgage and home insurance). However, banks' post-crisis focus shifted toward attracting stable term deposits to meet regulatory requirements and improve liquidity, rendering the oldprofit model (churning deposits into single premium products) unsustainable.

Post-Crisis Challenges:

• Banks prioritize consumer deposits and funding loans with term deposits to comply with Basel III, reducing reliance on fee-based income.
• Regulatory oversight of credit protection sales has increased, leading to market consolidation and reduced profitability.

Recommendations for Adaptation:
To thrive, bancassurance partnerships should embrace five key changes:

1. Broaden Product Offerings: Move beyond single premium products to include regular premium savings, protection, high-net-worth solutions, and 55+ offerings, deepening customer relationships.
2. Upgrade Sales and Advisory Models: Employ specialized sales staff with appropriate incentives and processes to build trust and increase product value.
3. Expand Business Banking: Capture a larger share of SME owners' wealth management and insurance spending through tailored products like business protection and employee benefits.
4. Cater to Self-Directed Investors: Develop tools and platforms (e.g., direct-to-customer sales channels) to attract independent investors, leveraging internet banking and customer data.
5. Leverage Data and Remote Channels: Use customer data and analytics to facilitate outbound sales of simple insurance products (e.g., accident and health coverage) through phone and web channels.

Conclusion:
The crisis has fundamentally altered the bancassurance landscape, making adaptation essential for banks and insurers. By transforming their business models, these partnerships can unlock new revenue streams and build stronger customer relationships.