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Bancassurance
Mike BishopRegional Director, Alternative Distribution
15th Nov, 2000
Bancassurance
Content
• The bancassurance market in Asia
• Our bancassurance model
• Results to date
• Our plans for growth
• Summary
1
Bancassurance
The Asian Bancassurance Opportunity Is Large• Estimates suggest
bancassurance sales could triple by 2005
• Banks enjoy a special relationship with individuals from an early age
• Higher propensity for customers to use branches
• Consumer feedback2
Bancassurance
Our Bancassurance Model
• Essence of model is proactive sales and activity management
• 3 distinct channels within overall bancassurance structure
• Flexibility is key: model can be tailored to fit each partner as required
• Proven model – we already operate it across 5 countries in Asia
3
Bancassurance
•Prudential employed
•Traditional life products
FinancialServices
Consultants(FSCs) Sales
•Bank employed
• Simple “bundled” life products
Bank Sales
•Combination of direct mail and telesales
•Simple products suitable for credit card base
Direct Sales
Our Bancassurance Model
4
Bancassurance
Financial Services Consultants (FSCs)• Dedicated Prudential salesforce
• Based in bank branches
• Comprehensive sales training programme
• High quality sales management process
• Lead generation approach
• Experimental hub centres
Bancassurance 5
The FSC Sales Process
Sale closed
Full fact find
Initial introduction
by FSC
Customer referred to FSC
Customer visits branch
Follow up review in
6-12 mths
The Virtuous CircleBancassurance 6
Bancassurance
Bank Sales
• Increases Prudential’s reach: # of branches & sellers
• Tailored, simple products− Mortgage Protection− Credit Life− Deposit-based life
products• Comprehensive sales
training for bank staff• High quality sales
support & service
7
Direct Sales
• Targets credit card customers
– Mail/Phone-Sell-Build-Nurture
• 40,000 policies sold in first 9 months of 2000
• Improves customer retention and card usage for partner bank
Bancassurance 8
Bancassurance
• Upgrade/add on• Cross-sell
− response rate 20-30%
BUILDTelemarketing
The Direct Sales Process
NURTURE• Loyalty campaign
− Free cover
Telemarketing
• Response rate 10-30%
SELL
MAIL/PHONE
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Tailored To Fit - How WeHave Used The Model So Far
Singapore
Hong Kong
Transferable to all markets
Full Model Hong Kong
FSCs & Bank Sales SingaporeMalaysiaIndonesia
Bank SalesThailand
Thailand
Malaysia
Indonesia
10 Bancassurance
Bancassurance
Excellent Results To Date
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Growth 9 mths 1999 - 9 mths 2000
Regular premium
Single premium
Customers acquired
Conversion rates
FSC productivity
+274%
+140%
+115%
+ 27%
+105%
Bancassurance
Continuing Our Growth
• Significantly increase – Financial Services Consultants– Productivity
• Develop new tailor-made products
• Expand distribution in Malaysia & Singapore to include direct sales
• Target new customer segments and markets
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Broaden relationship with Standard Chartered Bank
Bancassurance
• Rollout our bancassurance model
– New markets
– New banks
• Aggressively pursue Direct Marketing in select markets
Continuing Our Growth
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Bancassurance
Summary
• Early days for our bancassurance initiative but scale of growth apparent
• Prudential is well placed to exploit this opportunity
− Clear strategy
− Proven, flexible, transferable model
− Management commitment
− Strong regional partner
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