Bancassurance

1
Bancassurance
Mike Bishop
Regional Director, Alternative Distribution
15th Nov, 2000
2
Content

• The bancassurance market in Asia
• Our bancassurance model
• Results to date
• Our plans for growth
• Summary

1
3
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 feedback

2
4
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
5
Our Bancassurance Model
Bank Sales
Direct Sales

• Combination of direct mail and telesales
• Simple products suitable for credit card base

• Bank employed
• Simple bundled life products

4
6
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
7
The FSC Sales Process
The Virtuous Circle
Bancassurance
6
8
Bank Sales

• Increases Prudentials 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
9
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
10
The Direct Sales Process
9
11
Tailored To Fit - How WeHave Used The Model So
Far
Full Model Hong Kong
FSCs Bank Sales Singapore Malaysia Indonesia
Hong Kong
Thailand
Bank Sales Thailand
Malaysia
Singapore
Indonesia
Transferable to all markets
10
Bancassurance
12
Excellent Results To Date
Growth 9 mths 1999 - 9 mths 2000
274 140 115 27 105
Regular premium Single premium Customers
acquired Conversion rates FSC productivity
11
13
Continuing Our Growth
Broaden relationship with Standard Chartered Bank

• 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

12
14
Continuing Our Growth

• Rollout our bancassurance model
• New markets
• New banks
• Aggressively pursue Direct Marketing in select
  markets

13
15
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

14