Bancassurance is a partnership between a bank and an insurer for the latter to sell their insurance products to the former’s customer base. If everything goes according to plan, this kind of arrangement can yield significant revenue potential for both parties. Through a robust bancassurance program, banks will be able to diversify their operation, and at the same time, insurers can expand their market reach.
How the Right Core Bancassurance Solution Can Help You Innovate Your Insurance Business
In recent years, more banks and insurers have become interested in joining forces to provide bancassurance products—mostly because it is now easier and less expensive to do so. On the insurer’s end, when a bancassurance program is properly managed from a dedicated digital insurance platform, there’s no longer a need to cull from multiple websites or programs to consolidate everything on the insurance side. Insurers can also enjoy faster product releases, lower overhead costs for bancassurance policy management, and state-of-the-art analytics capabilities from their new investment.
Upgrading to a bancassurance solution and partnering up with a trustworthy bank may be the best thing you do to innovate your insurance business. Below are four good things that are possible when insurers build partnerships on a foundation of a robust core bancassurance solution:
It Can Synergize Your Efforts with Your Banking Partner Toward a Successful Co-Branded Experience
One key benefit of adopting a core solution for bancassurance activities is the achievement of synergy between the insurer and their partner banker. For one, both parties can maintain optimal information sharing using a single source of truth—or, in the specific context of bancassurance, a single source of policy information—that eliminates all ambiguities when it comes to banking customers’ insurance data.
For another, a core solution will allow these two parties to manage all parts of the bancassurance lifecycle completely, making use of both human and automated resources to guide customers through the process. Moreover, the platform can merge the bank’s customer relationship management (CRM) mechanisms with granular details from the insurer’s programs, allowing straight-through processing for customer registration.
Taken together, these possibilities can form a co-branded experience that reflects well on both your insurance business and your partner bank. Both of your institutions will be seen by your shared customers as innovative, forward-thinking, and capable of engineering practical solutions for their specific needs.
It Will Allow You to Sell Policies at a Greater Speed and with a Quicker Time to Market
A core bancassurance solution will also allow your business to utilize your partner bank’s huge customer base to sell to new insurance customers. You’ll be able to debut new insurance products more quickly thanks to the presence of a reliable new platform, and it won’t be hard to manage these while using a rules-based configuration system.
From product development and launching to customer enrollment on the platform, you can depend on the efficiency of the bancassurance program from end to end. Your new insurance customers can also expect timely updates on the status of their application, plus personalized customer assistance on their policies whenever it’s needed.
It Can Lower the Cost of Managing Insurance Contracts
At its core, a well-crafted solution will be able to reduce the general complexity of doing bancassurance-related activities. With a streamlined IT environment for bancassurance, both the insurer and its partner bank will have fewer troubleshooting costs to account for.
Even complicated back-end processes, such as consolidating policy information and reconciling commissions, can be done in a more cost-efficient manner. For banks and insurers who want to pursue a bancassurance agreement but are worried about the steep costs of managing insurance contracts, a dedicated core solution may hold the key.
It Can Allow You and Your Partner Bank to Tap into the Power of Analytics
Lastly, it may be worth onboarding a core bancassurance solution if there are sophisticated analytics capabilities built into the platform. That means that you and your partner bank will be able to get the numbers on the customer demographic that your program is most popular with, plus the demographic that has the most unrealized potential.
Other insights that you can gain from your platform’s data analytics features are how much you’re earning off of your insurance products sold through bancassurance, what your most in-demand policies are, and what more you can do in the near future to increase your bottom line. A good bancassurance solution will be able to generate these figures for you in a snap through its detailed analytics reports.
Reaching New Heights with a New Core Bancassurance Solution
In summary, the ideal bancassurance solution will help you simplify the IT ecosystem that supports your bancassurance activities while also making you more powerful and agile in your operations. For its potential to accelerate your bancassurance efforts and make the process more profitable for both your insurance business and your partner bank, a new core bancassurance engine is definitely worth investing in.