Selling Bancassurance in the Digital Age

Article Synopsis :

The digital and bancassurance revolution will be an exciting journey in delivering value to customers, bank partners and shareholders. So says Pacific Life Re. And though this paper is on how South East Asian bancassurance needs to up its game, it is a blueprint for all markets.

Making bancassurance painless will result in rapid adoption  

Consumers are already seeking individual products that are more tailored to their specific requirements. Delivering this in a seamless manner will, potentially, secure higher sales volume, efficient fees generation for the bank, while their customers will find the experience better and receive protection at a fair price.

The opportunities presented by insurtech are many and various, but what could be achieved as quickly as next year?

Satisfied customers

Insurtech will enhance the services insurers can offer their customers. For instance, matching disability cover to a loan term, or offering overseas medical cover to those with foreign currency credit card transactions. Such offers will be presented via the customer’s e-banking app, as a pop up on a similar transaction or within their e-statement. These opportunities might be brought to the attention of the customer through interaction with a member of the bank’s staff.

The data analysis allows the bank to only offer relevant insurance products that best fit the customer’s profile and indicative needs while the customer feels they are getting a bespoke service.

Know your customer

Once the relevant offer has been identified, customers who fit the insurability profile will be invited to make a purchase. As the insurability profile is known to the bank, there is no need to ask any questions about medical history, for instance. This may facilitate a seamless fulfilment experience for the customer. Offers can be enhanced with a higher cover or lower premium for those customers with a ‘preferred’ risk profile.

Making it a painless process

Validation of a purchase is a two-step process. Biometrics on smartphones makes it increasingly simple – and secure – to validate a sale. Alternatively, a selfie can be sent via the app or the customer could pop into a branch to verify the purchase.

Step 1 – Verifying personal details

A prepopulated basic information form will be populated by the bank’s database, covering name, sex, etc. The default recommended version is offered with the premium based on the benefit size linked to the relevant banking transaction, such as income protection cover automatically linked to the monthly mortgage repayment, so the customer can understand it better, in context.

A slider can be used to dial up or down cover options find the product that best fits their needs and budget. Offering other premiums available in the market will reinforce the value being offered. A simple tick box confirmation about the state of the customer’s health would be enough to complete step one.

Step 2 – Payment and key information

No physical payment is required as the payment can be linked to savings, credit card or e-wallet. At completion, the customer would be reminded of the five key important product features including the risks covered, benefits received the duration of cover, premium size and a link to check further details of the insurance cover purchased within their e-banking app.

Seamless on-going experience

Everything can then be accessed, including the policy document, via the banking app. The dashboard will link to claims, updates and penalty-free cancellation. Authorised bank staff would Have access to this information when dealing with a customer, whether in a branch or remotely, enabling consistent on or offline engagement with the customer.

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