What Is Bank Insurance?

Banking insurance is the cooperation between banks, postal services, IMFs, and other financial institutions and insurance companies to provide products and services to customers through common sales channels. Banking insurance is the mutual integration, complementarity and common development of different financial products and services; Bank insurance is a new type of insurance concept. In financial cooperation, it reflects the strength and mutual interaction of banks and insurance companies. This method first emerged in France, and the Chinese market has just begun. Compared with the traditional insurance sales method, its biggest feature is that it can achieve "three wins" for customers, banks and insurance companies.

Bancassurance

(Banking Services Products)

For consumers, bank insurance is a simple and convenient way to purchase through bank counters or wealth management centers.

In fact, the integration of banking and insurance has a long history. E.g,

Is the need for commercial bank business development

With the development of China's market economy, the banking industry is gradually transitioning to commercial banks, and its operations and development will gradually follow the laws of the market economy.

The bancassurance business is that banks and insurance companies take common customers as the service object, and take common products with both banking and insurance characteristics as sales targets. Through common sales channels, they provide common customers with integrated marketing and diversified financial services for common products. New business. The main model of bancassurance in the world From the international experience, it is necessary to establish close capital relations for bancassurance to develop well. The deepening of bank insurance is a process from product cooperation to capital cooperation. From an economic point of view, product cooperation is mainly based on distribution channels, and there is a principal-agent mechanism. Due to information asymmetry, it will lead to short-term effects, increased costs and moral hazards, so it will gradually shift to capital cooperation and share the growth profits with each other. At present, the product sales method is widely adopted in China, and financial service groups involving equity structure also have ^[3]

The first is the bank agency model, where insurance companies provide products, and the banks provide sales channels and charge fees;

Renewal of ideas

At present, banks must update their concepts and operate the agency insurance business with an attitude of main business in order to ensure the healthy development of the business. Insurance companies have also been conducting business in accordance with their own inherent models for many years. To achieve breakthroughs in bank agency, they must also Change the "difficult" mood and overcome short-term thinking. Only in this way can the bank and insurance achieve a "win-win" goal.

Benefit distribution

Profit distribution is the most sensitive issue in the cooperation between banks and insurance parties, and it is also the key to the success of the cooperation between the two parties. Profits must be reasonably divided to ensure the smooth cooperation between the two parties. The insurance company should distribute profits to the bank's first insurance premium to the maximum extent. Because the insurance industry, especially the life insurance industry, has a long payment period, usually up to ten or even decades, and once customers choose to insure a company (or agency), they generally no longer change, so the insurance company draws on personal marketing The commission commission method in China will divide the profits to the banks in advance and to the maximum extent, make full use of economic leverage to motivate the banks, enlarge the size of the first premium, and obtain the maximum benefits in the growing renewal business. In the early stage of bank agency insurance business, it is necessary to maximize the distribution of benefits to the frontline. Because all the business originates from front-line personnel, in the early stage, because the agency business was small, the resulting agency fee was minimal. If it cannot be fully allocated to the front-line business, it will not be enough to motivate the front-line personnel to work, affecting the agency Healthy business development.

The relationship between current interests and long-term interests

Bank agency insurance business is a new thing. It takes a long time to get people's approval. The agency business gradually expands, and it takes years or even longer to form a scale. Whether it is a bank or an insurance company, we must take a long-term perspective and handle the relationship between current and long-term interests. We must not rush to achieve success.

Specialization of services

Although there are many similarities between the insurance industry and the banking industry, there are still many differences. This requires practitioners to have insurance concept and insurance awareness first. Secondly, we must have insurance professional knowledge. Only rich professional knowledge can provide customers with high-quality and comprehensive services. Therefore, both banks and insurance institutions must raise the issue of professional services to a higher level; insurance institutions must provide high-level training, and banks must ensure that employees can integrate insurance concepts and knowledge, so as to ensure smooth cooperation and cooperation. Success ^[4] .

Popularization of contract terms

The insurance clauses, as a description of a professional contract, must be rigorous, comprehensive, and detailed, but because the insurance clauses involve too much professional knowledge and terminology, it appears obscure for ordinary customers and easily causes misunderstanding. The insurance clauses of bank agents should be designed to be as easy to understand as possible, so that depositors who enter the bank can understand the clauses or auxiliary promotional materials to avoid affecting the business development of the bank agent due to insufficient expertise.