Bancassurance has allowed banks to expand their portfolio in addition to enabling insurance companies to increase their reach. Today, customers too prefer a consolidation and delivery of all financial services at their fingertips.
Banks that place the highest priority on customer service and satisfaction have a competitive edge. So, it’s no surprise that many banks include insurance in their product offering.
In 2021, the global bancassurance market size reached USD 1268.7 Billion. By 2027, it expected to reach USD 1802.3 Billion by 2027, exhibiting a CAGR of 5.9% from 2022 to 2027. Currently, life bancassurance dominates the market globally, as it accounts for the biggest share. The key reasons for bancassurance services growth in the past and coming decades are the rising awareness about insurance services and changing guidelines on wealth management.
In addition to sustaining growth, banks can also emerge as a leader in bancassurance by employing the right strategies. But, how to achieve that? This blog post will shine some light upon growing the bancassurance channels and taking the business to the next level.
Growing The Bancassurance Channel
How can banks gain and retain customers with Bancassurance better? Firstly, banks need to align their business vision and set up a robust workflow and governance regarding Bancassurance.
Secondly, banks need to have periodic assessments of their relationship with insurance partners and stay updated on what works the best for all the parties involved.
Next up, banks can incentivize their branches, tellers, and relationship managers to distribute more products. You can motivate them to distribute more by providing a real-time view of their KPIs, goals, performance, and incentives.
Banks can also train their tellers and relationship managers on insurance products via a digital mechanism that will allow them to access all the necessary information in one place.
Furthermore, banks can grow their bancassurance channels significantly by being proactive and enabling innovation. For instance, banks can embed insurance coverage with all their bank products, for example, Debit cards with extra health cover.
Improve Customer Journey
Typically, a bancassurance customer journey is complicated since multiple buying journeys are integrated (banks products and insurance products) in one place. If there is a lack of harmony between banks and insurance companies, the whole experience can become cumbersome for the customer.
Therefore, it is vital for banks to establish a seamless customer journey that is straightforward and swift. With an optimal customer journey, banks can ensure an improved customer experience and as a result, retain customers.
Banks can also enable notifications that reach their customers (and/or potential customers) at the right time via the right modes and offer customized insurance products. This method takes a more customer-centric approach than sending out generic suggestions of available insurance products. Banks can further improve this by using AI recommendations to help customers choose the right product.
How Can Banks Improve Bancassurance Customer Service?
Banks can ensure handholding from the beginning of the customer journey to the end of it while paying attention to customer requirements and helping them navigate by educating them on the insurance products and their benefits. This will help them arrive at the best possible decision while improving their overall experience.
Digitally Enable Customer Experience
Customer behaviors change rapidly, especially in the fast-changing digital environment. Currently, customers look for digital channels to search or buy a bancassurance product.
Bancassurance today has evolved tremendously and moved far away from the traditional bancassurance model. With huge strides in technology, banks can implement solutions that will help deliver an improved user experience. Through these processes, banks can enable quoting that eliminates reliance on manual work.
Relationship managers can show a comparison of available insurance policies to their customers using CRM. Alternatively, customers can view the available policies using bank apps and purchase the policy that suits their requirements.
Additionally, digitalization will improve back-end processes and enable banks to become more efficient.
Bancassurance is quite a challenging field. However, by implementing the right leadership strategies and employing an advanced management system like BANCALive, banks can grow their distribution channels.
Aspects like aligning visions, improving customer experience, and streamlining sales practices will lead banks to win new customers and retain existing customers.