Bancassurance Survey 2015BY
WATSON MACHARIA, PARTNER – LLOYDS AFRICA MARKETS
Respondents
1. Bancassurance Consumers
2. Banks
3. Insures
Consumers By Age
18 to 2417%
25 to 3454%
35 to 4421%
Respondents Age Profiles
18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 to 74 75 or older
Consumers Social Economic Class
The participants were drawn from the upper to lower middle socio-economic categories representing the largest percentage. The average income was the main indicator of the social economical classes. The middle to upper class had an average net monthly income of between Ksh 50, 000 and Ksh 150,000. This is mainly because the Ugandan middle class is growing fast and they are the major clients for the insurance products.
Insurance Companies (23) Resolution Insurance
AIG Uganda Insurance
APA Insurance
APA Life Assurance
British American Insurance (BRITAM)
Cannon Assurance Limited
Cfc Life Assurance
CIC General Insurance
CIC Life
First Assurance
GA Insurance
ICEA Lion General Insurance
ICEA Lion Life Assurance
Jubilee Insurance
Uganda Orient Insurance
Madison Insurance
Occidental Insurance
Pan Africa Life Assurance
Takaful Insurance Of Africa
UAP Insurance
Fidelity Shield Insurance
UAP Life Assurance
Banks (25)ABC Bank
Barclays Bank of Uganda
CFC Stanbic Bank
Chase Bank
Commercial Bank of Africa
Co-operative Bank of Uganda
Diamond Trust
Ecobank Uganda
Equatorial Commercial Bank
Equity Bank
Family Bank
First Community Bank
GT Bank Uganda
Housing Finance
I&M Bank
National Bank of Uganda
NIC Bank
Prime Bank
FAULU Micro Finance Bank
KWFT Micro Finance Bank
RAFIKI Micro Finance Bank
CENTURY Micro Finance Bank
Gulf African Bank
Uganda Commercial Bank
FINDINGSBANKS AND INSURERS
Number of distribution agreements -Insurers
33%
11%33%
11%
11% 1-5
5-10
10-15
15-20
More than 20
Number of distribution agreements -Banks
31%
56%
12%
How many bancassurance distribution agreements do you have with banks?
1-5
5-10
10-15
15-20
More than 20
Mode of Compensation to Banks
Commission
Profit Share
Dividends
Fees
Other (please specify)
0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%
100.0%
18.8%
0.0%
18.8%
6.3%
How do you compensate the bank for bancassurance sales?
Motivation -Banks
Strengthen and retain existing customer relations
Boost Fee income
One-stop shopping for financial services
Building or extending the Institution's Brand (Widening consumer awareness etc)
Attract new customers
4.55 4.60 4.65 4.70 4.75 4.80 4.85 4.90 4.95
4.78
4.89
4.89
4.67
4.67
How important to you are the following reasons why banks venture into bancassurance?
Challenges to Entry -Banks
Legislative issues
Inadequate skills at the bank
Integration and operational challenges
Conflict from the agents and brokers
Exclusivity requirements from other partnerships
Lack of public awareness on available bancassurance products
Other (please specify)
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
What were your greatest hindrances when venturing in bancassurance distribution?
Challenges to entry -Insurers
Legislative issues
Inadequate skills at the bank
Integration and operational challenges
Conflict from the agents and brokers
Exclusivity requirements from other partnerships
Lack of public awareness on available bancassurance products
Other (please specify)
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
What were your greatest hindrances when venturing in bancassurance distribution?
Preferred Partnership -Banks
Provide operational support, including technology support
Provide in-branch, point of sale support, e.g. insurance specialists, training, compliance, etc
Dedicated customer service for clients from this relationship
Direct contact available with Underwriting Division
Setting aside an annual marketing budget to support the financial institution
Production goals and commitment
Quarterly strategy and business plan meetings
Sales bonuses based on reaching targets
Create or support profiling of the financial institution's customer base
Underwriting concessions for life insurance sales
Up front cash payment for marketing
Placement of your in-branch insurance agents
0.00 1.00 2.00 3.00 4.00 5.00 6.00
How likely are you to provide each of the following services if an insurance Company viewed you as a "strategic partner"
Preferred Partnership -Insurers
Provide operational support, including technology support
Provide in-branch, point of sale support, e.g. insurance specialists, training, compliance, etc
Dedicated customer service for clients from this relationship
Direct contact available with Underwriting Division
Setting aside an annual marketing budget to support the financial institution
Production goals and commitment
Quarterly strategy and business plan meetings
Sales bonuses based on reaching targets
Create or support profiling of the financial institution's customer base
Underwriting concessions for life insurance sales
Up front cash payment for marketing
Placement of your in-branch insurance agents
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00
How likely are you to provide each of the following services if a bank viewed you as a "strategic partner"
Advisory Techniques For Bancassurance Partnership- Banks
Customer Surveys Mystery Shopping External Consultants advice
50.0%
37.5%
75.0%
When profiling a potential insurance company for a partner, which of the following professional advisory techniques did you use?
Advisory Techniques For Bancassurance Partnership- Insurers
Customer Surveys Mystery Shopping External Consultants advice
71.4%
42.9% 42.9%
When profiling a potential bank partner, which of the follow-ing professional advisory techniques did you use?
Effectiveness of Marketing MethodsBanks
Brochures in Branches
Mobile phone SMS
Telemarketing e.g., outbound call centers
Bank Statements Inserts
Media Advertising using TV, Print and radio
ATM Advertising/Solicitations
Independent brokers working with financial institutions
Dedicated insurance website
Branch signage
Referrals from clients, staff, professionals etc
Seminars
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00
How important to you are the following marketing methods in generating qual -ifi ed bancassurance sales leads?
Effectiveness of Marketing MethodsInsurers
Brochures in Branches
Mobile phone SMS
Telemarketing e.g., outbound call centers
Bank Statements Inserts
Media Advertising using TV, Print and radio
ATM Advertising/Solicitations
Independent brokers working with financial institutions
Dedicated insurance website
Branch signage
Referrals from clients, staff, professionals etc
Seminars
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00
How important to you are the following marketing methods in generating qual -ifi ed bancassurance sales leads?
Bancassurance on TechnologyBanks
Distribution channels
Customer Segmentation/Profiling
Marketing & Advertising
Product Development & Pricing
Customer Retention
Product Training
Market Research
Claims Assessment
Customer Service
Claims Payment
0.00 1.00 2.00 3.00 4.00 5.00 6.00
4.50
4.67
3.83
4.67
4.83
3.67
3.83
4.17
4.67
4.33
How important is technology integration in each of the following needs in increasing bancassurance sales?
Bancassurance on TechnologyInsurers
Distribution channels
Customer Segmentation/Profiling
Marketing & Advertising
Product Development & Pricing
Customer Retention
Product Training
Market Research
Claims Assessment
Customer Service
Claims Payment
3.80 3.90 4.00 4.10 4.20 4.30 4.40 4.50 4.60 4.70
How important is technology integration in each of the follow-ing needs in increasing bancassurance sales?
Client Segmentation StrategyBanks
17%
33%
17%
33%
How Complete is your Client Segmentation Strategy?
Have not yet implemented true client segmentation
Just started, have a lot to do
About half way to where we need to be
Almost there - needs a bit more tweaking
Well established and functioning very effectively
Client Segmentation StrategyInsurers
How Complete is your Client Segmentation Strategy?
43%
29%
7%
7%
14%
How Complete is your Client Segmentation Strategy?
Have not yet implemented true client segmentation
Just started, have a lot to do
About half way to where we need to be
Almost there - needs a bit more tweaking
Well established and functioning very effectively
CONSUMERS
Dominant Banking Institutions
ABC BankBank of India
EcobankFirst Community Bank
GT Bank KenyaI&M Bank
Jamii Bora BankConsolidated Bank
Equatorial Commercial BankImperial Bank
K-Rep BankNational Bank of Kenya
FAULU Micro Finance BankPrime Bank
NIC BankRAFIKI Micro Finance Bank
CFC Stanbic BankChase BankFamily Bank
Standard Chartered BankBarclays Bank of Kenya
KCBCo-operative Bank of Kenya
Equity Bank
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
Which of the following institutions do you bank with?
Dominant Insurers in Bancassurance
AMACO
CANNON ASSURANCE LIMITED
GATEWAY INSURANCE
INVESCO ASSURANCE
PIONEER LIFE ASSURANCE
XPLICO INSURANCE
APOLLO LIFE ASSSURANCE
GA INSURANCE
TRIDENT INSURANCE
CIC LIFE
RESOLUTION INSURANCE
PAN AFRICA LIFE ASSURANCE
AAR INSURANCE
BRITAM
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0%
Which of the following companies did you purchase an insurance product?
Product Awareness
3%
5%8%
13%
16%
21%
33%
Class of Insurance Purchased
Cover against Theft
Cover against Fire
Personal Accident Cover
Pension Plan
Medical Cover
Motor Vehicle Insurance
Life Insurance
Effectiveness of Marketing Methods
Tele-sales through call centre
Sign boards Advertisements Friends or relatives Bank Brochures Branch Advisory agency
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
How did you know that you could buy your insurance from the bank?
Perception; Banks vs Insurers on New Insurance
Yes77%
No23%
Would You Consider to Purchase Insurance if Sold To You By Your Bank?
Perception; Banks vs Insurers on Renewing Insurance
Yes71%
No29%
Would You Prefer To Renew Your Insurance Product Via Your Bank?
Preferred Bancassurance Classes
Engineering Insurance
Aviation Insurance
Marine Insurance
Personal Accident Cover
Pension Plan
Life Insurance
Cover against Fire
Cover against Theft
Medical Cover
Motor Vehicle Insurance
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00
Insurance Products likely to buy if sold by the bank instead of insurance agent/broker?
Overall Perception on Banks Vs Insurers
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
7 5 3
127
8 108
13
29
33 3134
22
8
Perception towards Insurers vs Banks
None Insurance Companies Banks
Conclusions & Recommendations
I. Make insurance a commitment for both banks and insurers senior management by focusing on its profitability
II. Use the insurer’s sales staff and expertise to drive the banks sales culture and, where possible and profitable, employ dedicated insurance sales wholesalers within the financial institution.
III. Build insurance as part of and not separate from the banks sales structure to enable better, more targeted, and more successful sales activities.
IV. Review customer loyalty after the insurance buying experience in the bank and use this as a bank product cross selling opportunity.
V. Utilize the banks customer information database more effectively to generate leads, uncover opportunities, and open up innovation in products
Conclusions & Recommendations
I. Integrate insurance sales into banks sales goals through incentives, referral fees, productivity credits, and/or other measures to help track and encourage productivity.
II. Connect bank sales staff via technology with insurance providers to enable answering of questions in real time and to overcome lack of knowledge at the point of sale.
III. Allow more training time for insurance products, either on the bank premises or via electronic methods delivered directly by insurers or third parties, to increase the bank-based insurance salesperson’s knowledge and comfort.
IV. Develop marketing outreach and educational programs targeted to both financial institution clients and the general populace to increase financial institution customer and general consumer awareness of bank and credit union insurance.
V. Use a profiling process on the front end to recognize opportunities, suggest solutions, and complete sales at the point-of-sale and/or refer appropriately.
Bancassurance Survey SeriesQ&A
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