Page 47 - ICE BUSINESS TIMES January 2020

MICROINSURANCE
INNOVATION

BANK INSURANCE

FINANCE
EasyLife
with incentive plans and specialized training. Banks can cross sell products
without increasing much of their operating costs and achieve improved
INCLUSION
profitability and non-funded income. This venture offers a diversified customer
portfolio and increased customer lifetime value which is a very important metric
for the banks. The good news is that factoring in all the beneficial effects of
Bancassurance, Guardian Life Insurance, the most innovative company in the
In accordance with BANCASSURANCE: A helps facilitate insurance companies in industry strongly believes that implementation of this kind of venture will not
Guardian Life’s vision growing and penetrating the market, only add further value to their own company but also will pave the path of
of ‘Insurance for All’, STEP TOWARDS functioning as arteries of marketing financial inclusion throughout Bangladesh.
Bancassurance is the RESHAPING THE systems delivering services to customers. The mutual relationship between the insurer and customer is very vital to achieve
ideal opportunity to When insurance companies collaborate customer awareness for insurance companies. The insurance carriers offer
spread awareness DYNAMICS OF LIFE with banks they enter a guardianship of financial protection and security to the customer’s family providing adequate
regarding the INSURANCE IN two regulatory bodies governing the financial solutions. The banks have a magnanimous distribution network which
importance of
insurance in terms of BANGLADESH process. This maximizes reach and allows for higher market penetration, this is the foremost benefit insurers gain
risk mitigation. The concept of Bancassurance was security of the service propositions. out of this alliance. Which in turn leads to a higher premium turnover. This also
Guardian Life Insurance originated in France in the 1980s, and allows the banks and insurers to have great customer engagements and an
is one of the active quickly spread through Europe and now it The role of Bancassurance enormous knowledge of the market demand, therefore increases the scope for
proponents of pursuing is practiced all over the world. in increasing Financial innovation to offer relevant products. With reduced
Bancassurance at Bancassurance is essentially a distribution operational costs, higher efficiency in processing sales and
policy level while channel for insurance companies, they Literacy and Inclusion savings or making an investment. After sales customer claims, the insurers are able to establish customer trust as
closely engaging with make use of the vast network of the banks According to the reports by Bangladesh well as spread awareness about insurance.
regulators. to sell insurance products. Distribution Bank, there are 59 scheduled banks with care is a vital part of any business-client relationship, Bancassurance has globally proven to be a great medium to
studies show that Bancassurance customers expressed a
channel is one of the key elements that an extensive network of 10,650 branches higher level of satisfaction from purchasing insurance spread awareness about insurance. This awareness benefits
all over the country. Collectively, the bank through bank channels. The ease of making payments customers, banks and insurance carriers alike. The
branches have a widespread reach from through their bank accounts, being able to regularly customers receive quality post sale services, the banks and
the major metropolitan cities to deep into check their insurance details and access to assistance insurance companies are better able to understand the needs
the sub-urban regions. In accordance with from bank employees in cases of queries or making for the customers and generate income, all the while
Guardian Life’s vision of ‘Insurance for claims have strengthened customer’s trust in the achieving a long lasting business relationship.
All’, Bancassurance is the ideal insurance industry globally.
opportunity to spread awareness regarding Bancassurance is booming in neighboring countries
the importance of insurance in terms of such as India, Pakistan, Thailand, Malaysia and all over
risk mitigation. Guardian Life Insurance is the globe. Convenience plays a key part in customer
one of the active proponents of pursuing awareness. When customers can have a single avenue
Bancassurance at policy level while closely for all their financial solutions and the banks inform the
engaging with regulators. This platform customers about the best suitable product for them, it
will allow customer access to more will establish a long financial relationship between the
information which may be more difficult banks the customer. The banks become a ‘one stop shop’
through other marketing or distribution for all the customer’s financial needs. Besides, customer
channels. Trust is a major factor when it loyalty and retention, Bancassurance is a great business
comes to measuring the desired output of venture for banks. They are able to generate additional
a product and banks have that business revenue in a cost effective manner from their existing
environment where customers do not resources. Insurance carriers often help train bank staff
hesitate when it comes to depositing their
Insurance Asia Awards 2019
41
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