axa experiences in bancassurance development - swotswot.ba/dokumenti/pdf_20101108165056.pdf · axa...
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101106 conference V01
AXA Experiences in
Bancassurance development
100908 C10 SC8 V01
1
Antonio Marchitelli
What does the bancassurance market look like?
A fast growing market…+16% annual growth between 1998-2007
From 10% insurance market share to 20% between 1998-2007
…dominated by Life & Savings……dominated by Life & Savings…87% of the market
…very specific per countryCaptive marketsOpen architectureLimited architecture
UKBelgiumGermany
Switzerland63bn€
USJapan
Private Banks
97bn€
FranceSpainItaly
151bn€
3 main bancassurance products segments
Affluent
Pure protection and savings
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Insurance
as bundled
Insurance
as additional
service
Insurance
as product
Value generation
Mass credit protection(i.e. cash loans)
Affluent packages(i.e. package accounts)
and savings(i.e. term life,accumulation)
5 key strategic levers for success in bancassurance
Operations
� Products - Tailored products for each customer segment. Market leader with above average product development cycle
� Access and operational support given to banks - Open IT platform with access to customized product selection and reporting
Organization
� Customer centricity & flexibility - Dedicated distribution network with dedicated infrastructure and governance system from other distribution channels
� Availability of key management information & decision making tools � Profitability indicators identified by each partner bank, monitored on an ongoing basis
Market best practicesMarket best practicesStrategic leverStrategic lever
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Operations� Partner training and sales support - Best in class training centre and flexible sales support to cover
all partners� Back-office support - Centralized function with well-trained operators to answer all product enquiries
covering for all partners
Performance management
� Management Information - Real time reporting capabilities� Relationship management - Frequent engagement to build a strategic relationship with sales
targets� Remuneration - Incentives are strategically aligned with value creation
Infrastructure� Administrative workflow - Fully integrated administrative support, creating a 'single view' for the
customer.� IT Platform - Flexible IT platform dedicated for bancassurance operations
Partnerships� Partnership strategy - Global methodology for new business and key account management with
regular reporting� Negotiation capabilities - Global standardized approach to negotiations and partnerships
Specific tailored business models
Bundled sales
Face-to-face sales of
products not linked to
Alternative sales channels
Head office under- written policies sales
� For business risks which require the involvement of
individuals
Corporate
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Bundled sales optional for customers
linked to banking offer
� Distribution opportunities created through sales of a banking product through “face-to-face” channel
� Recall actions
� Classic “Stand-Alone” Offer (i.e. L&S. P&C and Life Risk, Motor, Pension)
� Protection tool� Pension tool
� Direct from call centre (outbound) of "bundled" products (recall actions)
� Telemarketing of bank customers with specific "stand alone" products
� Direct on the Bank Internet site
� Other alternative channels
involvement of underwriting department (analysis and assessment of the Customer's needs)
� Contractual agreement between the insurer and the Policyholder (i.e. GMPS, Businesses, Associations) for the benefit of people linked to the policyholder under a contract of employment or other ties
Automatic bundled sales
� Coverages sold automatically with banking product
Excellent quality of service
Knowledge of the Client
� Know and analyse customers and market needs
Objective
� Identification, for each segment, of "moments of truth"
� Translation of the "voice of customer" into an improvement of processes related to "critical to quality" points
Operational implications
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Operational excellence
Communication to the market
How excellent quality of service may be achieved?
� Guarantee the operational excellence of each line of business
� To identify differentiating process and make them excellent in terms of delivered service
� Communicate commitments and results to customers and to the market
� To provide external communications (advertising campaigns, new media, Consumer associations)
� To send specific communications per processes focused on customer segment
Listening…
Voice of “Market” …
� “ … large uncovered protection needs”
� “ … more clarity on documents content and in
Voice of Client …
� “ we need stronger specialist support from the
Voice of Distributor …
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Source:- AXA Protection Report- Context Document Strategic Plan
protection needs”
� “ … protection gaps especially among young families and for the fourth age needs ”
� “retirement planning increases importance”
documents content and in the correspondence”
� “after the purchase, I have not had any other contact”
Source:- AXA MPS VOC Researches- Customer Scope
� “I will appreciate more flexibility within my policy”
� “for first: innovation and profitability”
Source:- AXA MPS VOD Research- “Selling Best practice” analysis
specialist support from the Bank and the Company”
� “… important is availability, training and supports”