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FWD Macau will provide a suite of insurance products and services to China CITIC Bank’s Macao customers, including high-net-worth individuals
Banks seek insurance partnerships to target rich customers
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BANCASSURANCE
everal banks in Asia have embarked on bancassurance programs with insurers to target high-net-worth individuals. In Hong Kong, China CITIC Bank teamed up with FWD Macau, enabling the bank’s customer base to access FWD’s suite of insurance products and services. In particular, the arrangement seemed to target the bank’s high net worth individual, with China CITIC Bank International executive director and deputy CEO Helen Kan noting that customers are likely to “reassess their insurance and protection needs with respect to wealth accumulation, preservation and legacy planning for future generations.” In Singapore, HSBC inked a 15-year bancassurance deal with MSIG Singapore. Under the exclusive agreement, MSIG will distribute its commercial and personal suite of insurance solutions to HSBC’s customers in Singapore. “With our combined strengths and expertise, we can create value for a more protection focused future for individuals,
8 INSURANCE ASIA
their families and businesses. Through our partnership, we look forward to strengthening MSIG’s position in Singapore with profitable growth,” MSIG Asia CEO Clemens Philippi said, commenting on the new partnership. Back at Hong Kong, Dah Sing Bank and Sun Life Insurance closed a HK$1.5b deal for a 15-year bancassurance partnership. With this, Sun Life is now the exclusive provider of life insurance solutions to Dah Sing Bank’s 570,000 retail banking customers. Following the completion of regulatory processes and approvals, distribution of Sun Life products is anticipated to start in July 2023. Bancassurance refers to the arrangement between a bank and an insurance company in which an insurer is allowed to offer their products to the bank’s current customer
base, according to one definition by Investopedia. Bancassurance has since become an important distribution channel for insurance products across Asia–Pacific. In a report, around 31%of life insurance premiums in the Asia Pacific region came from bancassurance, according to data from McKinsey & Company. “To successfully tap into the potential of this market in the coming years, banks and insurers need to act on three emerging imperatives: digitalising the bancassurance channel, reinventing the business model, and bringing purpose to the fore,” wrote McKinsey’s Vikas Gour, Anindya Mukharjee, Sumit Popli, and Sujin Saj in a bancassurance report published in 2022. To capture attention, banks and insurers must reimagine the bancassurance business model with customers’ preferences and expectations at the core, the four McKinsey & Co. authors said. “This could imply, for instance, the emergence of contextual products that are embedded in the insurance journey and ongoing advice to help customers change certain behaviors. Incumbent players need to build these capabilities rapidly, as customer behavior has transitioned rapidly,” the report stated. The future of bancassurance will involve recasting the channel as a way for customers to build and manage an integrated financialwellness plan. In addition to purchasing appropriate life and nonlife insurance protection, customers will be able to access comprehensive financial support, including loans to achieve life goals and advice on savings and investment, McKinsey said. Amongst capabilities expected of banks and insurers include: products across multiple asset classes; third party services to cover broader financial needs; and simpler, more modularized products. Underwriting capabilities must be driven by advanced analytics, including a simplified process for medical underwriting and access to extensive propriety research. Insurers and banks must also have the right sales platform capabilities, including an advanced analytics–driven robo-advisory engine, online-to-offline journey assistance, multimedia educational content, one-click sales journeys, and continuous engagement throughout the customer life cycle via both digital and in-person channels.
With our combined strengths and expertise, we can create value for a more protection-focused future for individuals, families, and businesses
