Banca Takaful by Faisal Shahzad Abbassi
ANCASSURANCE: Concepts, Opportunities & C
PRODUCTS
&
TARGET MARKET SEGMENTATIO
BY
FAISAL SHAHZAD ABBASI
HEAD OF BANCASSURANCE – ABN AMRO BANK
PRODUCTS & TARGET MARKET SEGMENTAT
“To achieve the
impossible, one mus
absurd; to look whe
everyone else has lo
but to see what no
has seen…….”
We Will be Discussing…
Why BanksMUST
WhyBanks SellInsurance
MUSTSell Insurance Current Scenario&&Succ
CurrentScenario Succ
Banks’ TargetMarket
Banks’Target forInsurance
Marketfor Insurance InsurancePenetration-
Insurance Penetration
Developing MarketOriented
DevelopingMarket OrientedProducts
Products Bancassurance- -Poten
Bancassurance Pote
Local MarketSegments
LocalMarket Segments
Banks
Banks
ABNAMRO
ABN AMROM M
Bancassurance
Bancassurance
The RightWay
TheRight Wayto Reachyour
toReach yourMarket
Market
Why MUST Banks Sell Insurance
Leverage customer base for
additional fee based
revenues.
Offer additional products to
customers meeting their life stage Cards
needs and increasing product
density Loans
Increase customer retention Liabilities
and loyalty, since insurance
products are long term Investments
Receive significant revenues
up front
Bring in a sales culture
Why MUST Banks Sell Insurance…. C
NATURE OF REVENUES
Immediacy in the case of commission for sales
insurance and life products.
Cumulative: Revenue snowballing, year after ye
becoming a significant proportion of revenue for
business line.
Predictability: Permanence in revenues where
continue to pay for a cover or service, which they
Fee based: No lock up of assets/capital
Banks’ Target Market For Insurance
Existing Account holders
Card holders
Credit Card
Debit Card
Relationship Card
Loan Customers
Mortgage
Personal
Auto etc…
Potential New Customers
High Net Worth Clients
Islamic Banking Customers
Developing Market Oriented Products
Different Strokes for Different Folks
Can’t Sell ‘Any’ product to ‘everyone’…. recipe for F
Don’t to be overawed by Competition
Avoid Me-too!!! approach
Hit the Right Chord of your Market
Address the Specific Needs
Local Market Segments
BANKING
SAVERS
SAVERS SPENDERS
SPENDERS
INSURANCE
Insurance Unaware
Insurance Aware
(Partly Insured) (Un-Insured)
Market Segments – Banks
Saver
Saver Spen
Spen
CurrentA/c
Current A/c PersonalLoan
Personal Loa
Savings
Savings ReadyCash
Ready Cash
Termdeposits
Term deposits CreditCards
Credit Cards
HNWI
HNWI Collateralized
Collateralized
Market Segments – Bancassurance
Saver
Saver Spender
Spender Ta
T
ss
Small ticket items
Small ticket items
Big ticket items
Big ticket items Protection based Consumer
Protection based Consume
Investment based Assets insurance
Investment based Assets insurance
forTakaful
for Takafu
Conventional insurance Health Insurance plans
Conventional insurance Health Insurance plans
Depositor’s insurance Accident Plans Ban
Depositor’s insurance Accident Plans Ban
Credit Insurance
Credit Insurance
The RIGHT way to reach Your Market
Above the Line Marketing (ATL)
Electronic Media Campaigns
Print Media Advertisements
Road Shows
Bill Boards
Below the Line Marketing (BTL)
In Branch Collateral
Call Centre
Mail Shots
ATM
Internet
PR Campaigns
Yes, ATMs. ABN AMRO
distributes one of its
insurance products via AT
Current Scenario & Success Potential
Products Offered
Indirect Insurance
– Credit Card Insurance
– Loan Protection
– Depositors’ Insurance
– ATM Insurance
Products No
Direct Insurance
– Education Plans
Offered
– Investment Linked Plans
Individual /Family
– Pension Plans
Insurance
– Home Protection
Auto Insurance
– Accidental Death/Disability
Family Takaful
Travel Insurance
International Heal
nsurance Penetration – A comparison
He
re
lie
st
he
op
p or
tu
n
Bancassurance : Potential in Pakistan
Total Bank branches in the country (2005) ~ Around 7,0
No. of Bank branches selling insurance ~ Less than 3
97% Bank Branches NOT Selling insurance
Total Personal deposit in Banks (2006) ~ Over Rs. 1
Bancassurance Premium (2005) ~ Rs.350 Mil
Less Than
99.97% IDLE Deposits
Number of accounts (current + savings) ~ Over 7.5 M
1% Penetration into Deposit ~ Rs.6 Billi
Revenue
Source: NBP Economic bulletin July–Aug 2006 / SBP Statistical bulletin 2006
ABN AMRO Model
Our Vision
To be the Market Leader in Bancassurance
Become ‘One-stop Financial Supermarket’ for our cu
Our USPs
Product Innovation – ATM Withdrawal Insuranc
Customer Centric Approach
Need Specific Products – Treasure Plus, Golden Y
Close Coordination & Relationship with Ins Co.
Our Achievements
Most Diversified Insurance Products Palette
ABN AMRO Model
ABN AMRO has tied up with EFU Life and EFU General for i
bancassurance product palette
How we Make more possible for consumers through banc
Design
Introduced ATM Withdrawal Insurance for the first time in the loc
Pricing
All-rounder, an exclusively priced general insurance product
Features
Insurance plans with exclusive insurance limits for our preferred ban
My dad has already
provided for my
education through
OUR BANK
THANK YOU !!!
I made the right
decision to ensure my
pension through
BANK
