Bancassurers: Their favourite strategies to capture new market shares

Bancassurers: Their favourite strategies to capture new market shares

The traditional insurers in battle order, the tech giants about to land, the new generation of InsurTechs already waiting…. As 2021 draws to a close, all are gearing up to defend their positions and make new conquests in due course.

In a low interest rate economy, it is competitively critical to increase market share, benefit from economies of scale and improve margins. The challenge is that competition in the insurance industry has probably never been as fierce as it is today.

Today, the industry is no longer just the domain of traditional insurance companies or pure players. invested in Acko, the new Indian InsurTech unicorn, and Lemonade and Metromile announced their merger.

Insurance products particularly in demand

In times of low interest rates (especially when the world stock markets are already wrestling with their all-time highs), the potential return on investments collapses and banks now see insurance products as an opportunity to increase their returns by leveraging their existing customer base. Insurance products therefore appear attractive to banks in comparison to, or as a complement to, their investment products.

Unfortunately, this strategic path, although particularly promising, is still fraught with obstacles. Bank advisors, who are already confronted with a wide range of banking products, all of which they must master, sometimes find it difficult to make the necessary effort to fully master insurance products as well.

Many clients’ trust in a hesitant advisor or a bumpy sales strategy can dwindle with increasing frustration (and even more so since a simple Google search is now sufficient to obtain detailed information).

The new challenge for banks and insurance companies is to design the buying process and user experience to meet the new expectations of customers.

Well-equipped advisors in the front row

That’s a good thing! Technological solutions are there precisely to support the modern advisor, fill gaps and assist them in their daily work to maximise customer satisfaction while streamlining costs.

Whether it is identifying the needs of clients, offering them the right product or supporting them in the event of a claim, there are solutions that are getting better and better, especially through the use of artificial intelligence.

Here are some examples:

  • Pre-qualification of prospects or clients:

Artificial intelligence is often seen as competition for flesh-and-blood advisors. But the goal of AI is not to replace humans, but to help them complement each other harmoniously. The technology helps advisors to work more proactively and efficiently, and helps to keep client information relevant and up-to-date. 

  • Building a dynamic sales proposition: 

Due to the multitude of insurance offers and their increasing personalization, the availability of a sales tool that can train and support the bank advisor(s) in real time can increase sales per advisor (especially by promoting cross-selling promotions).

  • Process large amounts of data automatically: 

ID card, proof of residence, tax notice … Many documents are needed to conclude an insurance contract or to assume the occurrence of a claim. Thanks to OCR technologies, time and costs for information processing are drastically reduced.

Higher revenues and more rational costs – the financial benefits of using technological solutions are real, but they are not the only ones!

In addition to the purely economic benefits, the human dimension must also be taken into account, which on the one hand increases client satisfaction and on the other improves the working conditions of counsellors (who are now equipped with means that guarantee their well-being at work and match their ambitions).

The new technological means, essential for the balance of power between established players and newcomers, will undoubtedly be the lifeblood of the struggle in 2022.

If you would like to learn more, you can download our white paper: “Challenging the Insurance Distribution Status-Quo”.