Year 2011 - Bancassurance – my perspective 銀行保險 我知我見

專題探討 Feature In order to provide a more holistic service to its clients, banks are extending its product range from the traditional deposit related products to investment related and insurance related products. Insurance products sold through banks are now commonly known as “Bancassurances”. These insurance products are predominantly individually related such as life insurance; insurances for the house; the motorcars; personal health and personal accident insurance etc. According to the latest statistics released by The Hong Kong Federation of Insurers as at 2009 there were 58,787 registered agents in Hong Kong. It was not known how many of these worked in banks. Banks enter into agency agreements with insurance companies according to rules laid down by the Insurance Commissioner. In many circumstances banks also own the insurance companies they entered into contracts with. Banks’ front line staffs have to qualify as insurance agents before they are allowed to sell insurance products. In other words banks and some of its staff become part the insurance intermediaries. They differ from insurance brokers, another form of insurance intermediary, as they represent insurance companies, not the final buyers of the products. Although there are banks setting up separate entities as insurance brokers to represent their clients in the purchase of corporate insurances, this practice is not common. When bank sets up insurance broking operation it usually does so through joint-venture with another insurance broker. In this article I would examine briefly the implications of the “Bancassurances” to both the traditional insurance agencies and brokers. What their strategies should be in facing competition from this sector from my personal point of view. Insurance products suitable for individuals are becoming more homogeneous. When these products are sold through a great variety of distribution channels, there would be intense competition. Seemingly it makes life more difficult for the traditional insurance agencies that only sell insurance products for the insurance companies they represent. However greater competition creates greater awareness of insurance needs, making the pie bigger. It forces the insurance agencies and insurance companies to come up with better and cheaper products to the benefits of the consumers. Banks are not only the ones that are selling insurance. Travel agencies, motorcar dealers are also representing insurance companies in selling products such as travel insurance or motorcar insurance suitable to the respective industry. The advantage these intermediaries has over the traditional insurance intermediaries who are selling products through their own contacts, or referrals from their existing clients just to name a few methodologies they are using, is that they have access to a larger client base. If one could ignore the origin where these agencies come from, it only means that there are now more insurance agencies employing more agents in town selling the similar products. Many insurance agencies find themselves still able to compete with widening/increased distribution channels. They retain their competitive edge over the banks, the travel agents and car dealers through more personalized services such as policy delivery, claims handling that these corporations are “How to Compete in the Era of Widening Channels of Distribution for Insurance” 16 2010 年刊與 2011 展望 YEARBOOK 2010 & PROSPECT 2011