The key benefits of bancassurance for bank customers
Ease of access
Customers have a natural and frequent level of contact with their bank. It is equally natural that when they visit their bank, they should find straightforward over-the-counter responses to all their financial needs, including precautionary savings, asset building, pensions, mortgage protection and protection against unforeseen life events. Mutualization within the customer base favors maximum access to protection (by mutualizing risks) and savings (by mutualizing costs).
The insurance products sold over-the-counter by banks have been specially developed to be simple to understand and simple to sell. Their rate structures are also designed for maximum customer accessibility.
Bancassurance dovetails perfectly with the range of retail banking services by offering bank customers not only savings products (like life insurance and pensions), but also loan protection products (for home loans, auto loans, etc.) and personal protection products. Customers are therefore able to buy a range of financial products from a single point of contact capable of covering all their needs. In the event of claim, they enjoy the further benefit of being looked after as part of the wider customer care relationship.
Selling insurance products via retail banking networks usually has the effect of reducing distribution costs, because marketing expenses can be offset against more extensive ranges of banking products and greater volumes of customers. Products can therefore be marketed at rates that are more attractive to consumers.
The solvency of the insurer selected by the bank and the legal guarantee of the institutional intermediary are both reassuring factors for end-user customers.