bancassurance trends in romania
TRANSCRIPT
BANCASSURANCE TRENDS IN ROMANIA
SORIN MITITELUCEO BCR ASIGURARI DE VIATA
FIAR – BRASOV – 20.05.2015
CONTENT
1. OVERVIEW - INSURANCE IN CENTRAL EUROPE (ROLAND BERGER & EFMA MARKET STUDY)
2. BANCASSURANCE - MORE THAN A SIMPLE DISTRIBUTION CHANNEL?
3. BANCASSURANCE - SWOT ANALYSIS
4. CHALLENGES FOR BANCASSURANCE - PRIIPs & KID
5. CHALLENGES FOR BANCASSURANCE - MiFID- SALES/ADVISORY
2
3
1. OVERVIEW - INSURANCE IN CENTRAL EUROPE (ROLAND BERGER & EFMA MARKET STUDY) (1/2)
Strategic options for general channel focus Relative importance of channels and planned shifts in priorities
4
1. OVERVIEW - INSURANCE IN CENTRAL EUROPE (ROLAND BERGER & EFMA MARKET STUDY) (2/2)
5
2. BANCASSURANCE - MORE THAN A SIMPLE DISTRIBUTION CHANNEL?
Strategic Partnership
Governance Structures
Multi-Level Execution
Vision; Strategic Objectives; Business/Operational Model; Performance Evaluation
Permanent Steering of the business aligned with partners management systems
External and Internal Communication
Customer Value Proposition;
Product/Sales/Process Management;
Budgeting, etc.
TOP LEVEL
MIDDLE LEVEL
BASICLEVEL
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3. BANCASSURANCE - SWOT ANALYSIS
• Large client database translate into high cross sell rate
• Low insurance penetration rate • Wide insurance product offer for bank
clients• Special prices on insurance products
for clients
• Not so well trained sales network in insurance
• Shrinking the banking network
• Distribution channel development • Opportunity to grow on both life and
general insurance • Cards and micro insurance with very
high potential• To grow on regular paid premium
• Changes in insurance legislation (including certification of people who sell insurance)
• Changes in fiscal environment (currently gains from life insurance are not taxed)
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4. CHALLENGES FOR BANCASSURANCE -PRIIPs & KID (1/2)
Regulation on key information documents for packaged retail and insurance-basedinvestment products (PRIIPs) applicable from December 31st, 2016
applicable to PRIIP manufacturers and persons advising on/selling, PRIIPs not applicable to:
non-life products; contracts where benefits are only payable on death or in respect of
incapacity specific pension products, certain occupational pension schemes
Scope
Subject to
PRIIPs
traditional life insurance with fluctuating profits hybrid products (traditional life insurance combined with unit-linked life
insurance) unit-linked and index-linked life insurance
Definition
insurance-based investment product: an insurance product which offers amaturity or surrender value that are totally or partially exposed, directly orindirectly, to market fluctuations
KID (Key Info
Document)
KIDs are short, plainly-worded documents – no more than a few pages long– that will provide investors with answers to the key questions they haveabout the features, risks, and costs of investment products
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4. CHALLENGES FOR BANCASSURANCE -PRIIPs & KID (2/2)
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4. CHALLENGES FOR BANCASSURANCE -MiFID- SALES/ADVISORY (1/2)
Socio -Demograp
hics
Financial education
Financial Assets
Financial Behavior
Customer Investment Risk Profile
Pricing
Volatility
Documentation
Complexity
Sales Support
Investment Product
Risk Profile
High Product
Risk; Low Customer
Risk
High Product
Risk; High Customer
Risk
Low Product Risk; Low Customer
Risk
Low Product Risk; High Customer
Risk
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Product 1
• Sales New Volume
•Commission
Product 2
• Sales Number of Contracts
•Commission
Product 3
•Outstanding Balance
•Bonus
CURRENTLY: Individual Commission -Product Based Schemes
FUTURE:Individual or Team Commission / Bonus -Customer Portfolio BasedSchemes
Bonus / Commission based on Products Portfolio Overall Performance
Product 3
Product 1
Product 2
Bonus / Commission based on Customers Portfolio Overall Performance
Customer 3
Customer 2
Customer 1
4. CHALLENGES FOR BANCASSURANCE -MiFID- SALES/ADVISORY (2/2)