We grew up hearing the proverb ‘first wealth is health’ or more commonly ‘health is wealth’ coined by American philosopher Ralph Waldo Emerson which is indubitable. The converse is also true as maintaining good health costs money from availing basic medicines and medical attention to expenditures in monitoring and maintaining sound health.

So the health protection products & services offered by insurance firms bundled with wealth creation products from banking & finance firms becomes a very compelling value proposition for BFSI clients. At the same time it is a win-win situation for Insurance companies and Banking firms, as they can optimally leverage on each other’s expertise, network and client base to grow their respective businesses.

Yet just like any other group formation goes through storming and norming phase, Bancassurance too have many challenges that must be resolved for the partnership to perform at it is full potential.

The first and foremost issue is ascertaining data ownership and a establishing trust in exchanging prospects’ and clients’ data which is required for financial need analysis, generating insights, offering the right product bundles and making prudent underwriting decisions.

Second is complex integration between banking and insurance operations which if not implemented correctly may impede straight through processing and faster turnaround time for Bancassurance applications.

Third is a lack of unified sales & servicing channels resulting into customer frustration as they need to approach banking and insurance staff separately for their queries, complaints, and service requests for a bundled Bancassurance product..

Finally, a Bancassurance partnership should avoid the paper work and face-to-face visits for KYC, application submission, contract signing, claim processing and payment processing for their customers.

Are you facing any challenges with your Bancassurance partnership ?

If you would like to know the ways to implement a nondualist partnership, pls get in touch with our Acuitologist for a non-obligatory cost-free discussion.