Banks sell insurances
The term Bancassurance has its roots in France emerging during the eighties of last century. At that time the French government actively encouraged the sales/distribution of insurance products using the branch networks of banks.
The idea of a one-stop finance expands that approach and describes the focus on a broad and – whenever possible – complete choice of financial products. What previously had been offered independently by insurance companies, banks, wealth managers or pension funds is now available to the client out of one hand. The cooperation between bank and insurance companies is conducted in form of partnerships or via own subsidiaries. Following failed mergers between banks and insurance companies and pursuing business opportunities which were considered to be more attractive, i.e. Investment Banking, the topic Bancassurance was moved out of the focus. The cultural differences between banks and insurance companies were overwhelming; the efforts for integration were halfhearted and income in other business areas seemed being more attractive.
Mainly due to the continuously low-interest rate environment and the subsequent importance of fee-related income for banks the topic Bancassurance gains new popularity.
The underlying model of Bancassurance is still logical and intuitiv: customers get in touch with their bank in case of financing or investment needs; the bank staff enlarges its professional advice and offers in addition to financing also insurance products. Following the comprehensive advisory possible risks are mitigated, customers are bound closer to the bank and additional income is generated.
What comes next? Bancassurance goes digital.
Szynkowski Consultants accompanies banks and insurance companies in the strategic and operational set-up through all phases to cover the topic Bancassurance: starting with an analysis of the current situation, the strategy development, the implementation and an efficiency review. Together with the client we establish individual solutions which can be easily and economically implemented and will generate income within a short period. During the mutual project work with the client we emphasize on a holistic view and the tight involvement of both management and staff.
Our services to insurance companies
Setting-up of concepts to foster and to enhance the systematic use of Bancassurance in the framework of partnerships and/or own subsidiaries.
Build-up and guidance of internal advisory units to support the cooperation partners in their efforts to implement Bancassurance concepts at the spot.
Development of benchmarking concepts to define the current status and to identify potentials not yet explored.
Our services to Banks
The complete inclusion of the insurance business into the bank as a core business area is the driving force behind Bancassurance. Szynkowski Consultants puts emphasize on all dimensions and action fields when implementing Bancassurance.
Development and implementation of this concept might include the entire bank, just parts or single organzational areas of the bank, i.e.
- Development of insurance potentials with qualified corporate and small business customers. Our numerous analyses of the corporate and small business sector of banks prove the low connection of this customer segment to the insurance business.
- Development of insurance potentials with the segment of wealthy private- and individual clients.
- Optimation of both organizational structure and work flows within the insurance departments of the bank.
Strategy and Positioning
- Development of a strategic objective related to the insurance business and its solid anchoring into the awareness of all bank staff
- Advising on selection and cooperation with insurance companies
- Marketing and appearance of the business unit insurance
- Employee selection and qualification profile
- Employee qualifications
- Remuneration models and incentive systems
- Implementation Insurance Distribution Directive
- Change Management and motivation
Operational Structure and Processes
- Integration of the insurance business into the overall bank organization
- Definition of standard products within the bank-internal distribution system
- Definition of roles and tasks within the operative business
- Customer care service concepts and service standards for existing clients
- Process description; starting with first customer contact until claims settlement
- Business segment responsibility
- Selection of a suitable organization model in congruence to the organization of all distribution channels of the bank (Multichannel)
- Staff force and branch network (sales force – back office)
- Design of communication- and information systems towards clients and internal departments
- Technical Integration
Management and Controlling
- Potential driven business segment planning
- Target allocation and reporting by means of appropriate control parameter
- Marketing strategy and control
Supervision service for mergers
Concentration processes and mergers among banks have substantially increased in recent years. We accompany and support the combination of different organizational models and cultures within the insurance business.
In addition to meetings on the spot we also offer to our clients digital/online support. This applies to the conception phase as well as to the guidance during the implementation process.