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Banc assurance

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Sajjad Hussain
Sajjad Hussain

Bancassurance is an efficient distribution channel with higher productivity and lower costs than traditional distribution channels

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Banc Assurance Presenter Sajjad Hussain (Sajjad Chitrali)
Topic: Group Members • NAME CLASS NO • UMAR ALI 391 • IKRAM-UR-REHMAN 393 • WALEED MIRAJ 394
• Concept started by British in 1965. • Started in Pakistan 1979. • EFU was the first in Pakistan to introduce a product to a bank account holders. • MCB started in 2004 • HBL started in 2006 • Although a not so familiar term in Pakistan.
• Definition: The selling of life assurance and other insurance products and services by banking institution. Explanation: Bancassurance arrangement benefits both the firms. The bank act as an intermediary.
Benefits to all parties •Fee based income •Low capital – high ROE • Improved customer service – Culture shift • Market opportunity • Customer expectation • Success in markets around the world • New distribution channel • A ‘warm’ customer base • Better persistency • Higher premiums • Profitable Growth • Competitive products • Success in markets around the world •Changing attitudes & awareness • Want options • One stop financial service • Trust banks Banks Insurance Companies Customers
Forms of • Strategic Alliance: » Tie-up between bank and an insurance company. » The bank only markets the products of the insurance company. • Full Integration: » A full Integration of banking and insurance services. » Bank controls sales insurer service levels including approach to claims. » The bank has an additional core activity almost similar to that of an insurance company.
• Mixed Model » The marketing is done by the insurer’s staff and the bank is responsible for generating lead only. » The database of the bank is sold to the insurance company.
in Pakistan • Bancassurance in Pakistan is not completely non-existent. • Life insurance companies have worked with banks. • Short of a true bancassurance arrangement.
Banks active in
• In the words of Suleiman ( Team Leader of Jubilee life insurance in HBL Peshawar region).
Direct Debit Standing Order
Summary • In earlier time the concept was not familiar as the insurance agent made fraud with the customer. • Bancassurance is growing day by day as people trust banks more than an insurance agent. • It helps the economy as two financial institutions come together.

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Banc assurance

  • 2. Topic: Group Members • NAME CLASS NO • UMAR ALI 391 • IKRAM-UR-REHMAN 393 • WALEED MIRAJ 394
  • 3. • Concept started by British in 1965. • Started in Pakistan 1979. • EFU was the first in Pakistan to introduce a product to a bank account holders. • MCB started in 2004 • HBL started in 2006 • Although a not so familiar term in Pakistan.
  • 4. • Definition: The selling of life assurance and other insurance products and services by banking institution. Explanation: Bancassurance arrangement benefits both the firms. The bank act as an intermediary.
  • 5. Benefits to all parties •Fee based income •Low capital – high ROE • Improved customer service – Culture shift • Market opportunity • Customer expectation • Success in markets around the world • New distribution channel • A ‘warm’ customer base • Better persistency • Higher premiums • Profitable Growth • Competitive products • Success in markets around the world •Changing attitudes & awareness • Want options • One stop financial service • Trust banks Banks Insurance Companies Customers
  • 6. Forms of • Strategic Alliance: » Tie-up between bank and an insurance company. » The bank only markets the products of the insurance company. • Full Integration: » A full Integration of banking and insurance services. » Bank controls sales insurer service levels including approach to claims. » The bank has an additional core activity almost similar to that of an insurance company.
  • 7. • Mixed Model » The marketing is done by the insurer’s staff and the bank is responsible for generating lead only. » The database of the bank is sold to the insurance company.
  • 8. in Pakistan • Bancassurance in Pakistan is not completely non-existent. • Life insurance companies have worked with banks. • Short of a true bancassurance arrangement.
  • 10. • In the words of Suleiman ( Team Leader of Jubilee life insurance in HBL Peshawar region).
  • 12. Summary • In earlier time the concept was not familiar as the insurance agent made fraud with the customer. • Bancassurance is growing day by day as people trust banks more than an insurance agent. • It helps the economy as two financial institutions come together.