Bancassurance refers to selling of insurance and banking products through a single distribution channel, usually the bank’s branches. It provides a risk-free stream of income at incremental rate for the concerned bank while enhancing clientele base, retention and loyalty.
After having significant success in Europe, development of Bancassurance in Asia has shifted into high gear. The Pakistani bancassurance market is approaching approximately Rs. 2 billion, which clearly shows that the income possibilities for the banking industry are also in billions. Moreover, research has proven that banking customers who have also purchased insurance through bancassurance are significantly more loyal and less likely to switch banks.
Two factors that have a significant impact on costs of bancassurance distribution are product design and administrative model. In this regard, East West Life has the honor of being the only life insurance company in Pakistan to offer a completely integrated administrative model of banassurance product-line distribution through assistance of our strategic partner, namely GBA Services (Pvt.) Limited.
GBA Services (Pvt.) Limited is an entrepreneurial company based at Karachi, Pakistan with core activities of third party management of life insurance operations via advanced internet based point-of-sale, fully integrated underwriting and back office system.
GBA primarily deals with banks and life insurance companies. While GBA may be a new entrant in the Financial Services sector of Pakistan, it brings together a wealth of experience and expertise gained in Europe, Middle East and South East Asia in its core business areas through its shareholders, management, advisors and technology partners.
East West Life has entered into a strategic cooperation agreement with GBA Services (Pvt.) Limited to provide full third party support services with respect to bancassurance business. GBA will use specialist information systems licensed from Sidat Hyder Morshed Associates (Pvt.) Limited to administer policies. In addition, it will provide access to the front end modules to be located in bank branches for pre-sales and policy issue process. The specialist systems from Sidat Hyder consist of Individual Life Administration System (ILAS) for administration of individual policies, individual life illustration system and bancassurance system for front-end purposes.
Through such state-of-the-art software systems, East West Life is the only insurance company in Pakistan offering an IT system that will issue policies for approximately 80 to 90 percent of the life insurance proposals without any involvement of the insurance company. This would mean that the bank’s revenue generation will be faster and will not be dependent on the insurance company personnel. This is a significant advantage over the non-integrated administrative model approach being used by other insurance companies in the country, which leads to delays of days or even several weeks before a policy can be issued on a single life insurance proposal.
Further, as a result of our strategic partnerships and agreements, East West Life is offering the following benefits/advantages through its bancassurance product:
- Customized product design meeting the specific needs of the bank and its customers,
- Availability of general insurance products as well through East West Life’s sister concern,
M/s East West Insurance Company Limited.
- Services of professional trainers necessary to provide training to the bank’s personnel,
- Advice through the country’s top actuarial firm, namely Akhtar & Hasan (Pvt.) Limited,
- Exceptional returns to the customers of the banking entity,
- Top-notch client servicing support from the team of professional at East West Life,
- Complete 24/7 IT related support through Sidat Hyder Morshed Associates (Pvt.) Limited, and
- Excellent and unmatched financial benefits for the banking entity.
Therefore, we can say, without any doubt, that our bancassurance product is the best in Pakistan and would like to invite banking entities to experience the unmatched benefits of dealing with East West Life and its strategic partners!!
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