1. BanCassurance in THE REGION OF former Yugoslavia

2. Outline 1. Why bancassurance?
2. Market overview – Austria, Slovenia, Croatia, Serbia
3. Case studies – Serbia & Macedonia
4. Roadmap of bancassurance
5. Best practice

3. Why bancassurance? Reasons for the BANK Extension of bank’s services
Better market positioning
“Risk-free” increase of revenues
Increase of bank deposits in terms of reinvestment
Increase revenue from fees charged for payments
Loan repayment security in the case of death
Loan repayment security in the case of loss of property
Reasons for the INSURER
Increase of sales:
Life insurance
Property insurance
Increase of revenues
Better market positioning
Extension of services
Extension of target group

4. AUSTRIA
LIFE MARKET
CPI – Death, Permanent Total Disability , Temporarily Total Disability
Traditional Life insurance – Endowment, Unit-linked + riders (primarily Accident)
NON-LIFE MARKET
Group accident / Group health / Travel insurance
Property – Home / Household insurance, SME

5. SLOVENIA
LIFE MARKET
CPI – Death, Permanent Total Disability , Temporarily Total Disability
Traditional Life insurance – Endowment, Unit-linked + riders (Accident, Dread Disease)
NON-LIFE MARKET
Group accident / Group health / Travel insurance
Property – Home / Household insurance, SME
Car – MTPL, Casco

6. CROATIA
LIFE MARKET
CPI – Death, Permanent Total Disability , Temporarily Total Disability
Traditional Life insurance – Endowment, Unit-linked + riders (Accident, Dread Disease)
NON-LIFE MARKET
Group accident / Group health / Travel insurance
Unemployment
Property – Home / Household insurance, SME
Car – MTPL, Casco

7. SERBIA LIFE MARKET group life not allowed NON-LIFE MARKET
Group accident / Group health / Travel insurance
Unemployment
Property – Home / Household insurance, SME, Industry

8. CASE STUDIES Serbia & Macedonia

9. Macroeconomics SERBIA MACEDONIA Population 7.181.505 (Census 2012)
Active population
Employed
Around 2,200,000
Around 1,700,000
Number of unemployed
792,344
Average salary
385 EUR
Average pension
200 EUR
Average debt per capita
818 EUR
Average savings per capita
Around 45 EUR per month
Number of banks 30
Number of insurance companies
28 (life and non-life)
Average insurance premium per capita
75.5 EUR
Average non-life insurance premium per capita
Around 60 EUR
Average life insurance premium per capita
Around 12 EUR
Population
2,045,262 (Census 2002)
Active population
637,855 (2011)
Number of unemployed
294,963
Average salary
360 EUR
Average pension
144 EUR
Average debt per capita
650 EUR
Average savings per capita
Around 40 EUR per month
Number of banks
savings banks
Number of insurance companies 14
Average insurance premium per capita
56 EUR
Average non-life insurance premium per capita
Around 50 EUR
Average life insurance premium per capita
Around 5 EUR

10. Case Study - SERBIA
Group Accident

11. Serbia Focus of the project partner OPPORTUNITY Bank, Novi Sad
group accidental insurance incl. death from sickness
CPI for pensioners’ loans
partner OPPORTUNITY Bank, Novi Sad
start of project: May 2011
Development of insured:

12. Voditelj i član tima trebaju iste sposobnosti i vještine ?
Case Study - MACEDONIA
Voditelj i član tima trebaju iste sposobnosti i vještine ?
Group LIFE

13. Macedonia Focus of the project
group life insurance
Death from accident/sickness
Permanent Total Disability
Total and Irreversible Loss of Abilities
CPI for all sorts of loans
partner OHRIDSKA BANKA SOCIETE GENERALE Bank, Skopje
start of project: January 2013

14. ROADMAP

15. Roadmap traditional life risk life property / car / SME / UE
Affluent clients
Deposits
HIGH
involvment of sales force
training intensive
Key persons in SMEs
Credit protection
traditional life
Addition to deposits
Cards - Assistance
Credit protection
risk life
Addition to Deposits
Payment protection
Credit protection
Overdrafts
Cards
property / car / SME / UE
LOW
involvment of sales force
„easy to sell“
group accident / travel insurance
LOW
premium / commission margin
HIGH
premium / commission margin

16. Best practice

17. Technical Support Sales Processes Policy issuing process
WEB-portal (info on products, application form data, premium calculation, health questions, acceptance,…)
Production reports (daily, weekly, monthly + specific campaigns)
incorporation of premium calculation and underwriting (health declaration/questionnaire) into bank‘s software and processes
Policy issuing process
electronic data transfer bank-insurer (WEB-portal or incorporated software)
underwriting with fast response rates – feed-back on acceptance
policy issuing to bank and/or policyholder
Ongoing business processes
payment procedures – standing orders/direct debit
reminder/cancellation procedures

18. Sales Force Trainings and Support
Centralized and on-site trainings
trainers provided by insurer
advisors/mentors per branche office
e-learning
product trainings – hard skills
sales skills trainings – soft skills
expert trainings (claims handeling, prevention of cancellations/surrenders/…)
dedicated sales trainings (e.g. best sellers club)
Call centers / Support centers
claims handling
clarification and conciliation for on-site questions by sellers or customers

19. Marketing Marketing material Branch Marketing Product Marketing
Insurer's image brochure
give aways
ATM advertising
banners on web-sites
intranet-promotions
Branch Marketing
co-branded posters / flyers within branch offices
dedicated co-branded sales desks
Product Marketing
sales tools – FAQ, „reasons to buy“, underwriting guidelines
Incentives
remuneration/commission paid to sales force
competitions: best sales persons‘ reward, co-organized events/trips

20. Side Business Commission schemes Incentives
clear definitions per product / product line
Incentives
profit sharing
bonus commission schemes
Bank to act as Depot bank for the respective investment portfolios
Premium collection / recommendation to insurers existing clients

21. Bancassurance in THE REGION OF former Yugoslavia