MicroEnsure’s Group Business Director, Rehan Butt recently presented at the 19th Asia Conference on Bancassurance and Alternative Distribution Channels which was held in Manila, Philippines in May.
While presenting a case for commercial banks to consider ‘’Inclusive Bancassurance’’, Rehan touched on a number of areas where commercial banks can grow deposits, reduce account dormancy, grow new-to-bank customers and source direct insurance revenue by serving the risk and insurance needs of emerging customers.
Rehan’s presentation – Reinventing Bancassurance for Emerging Customers: How insurers and commercial banks can focus on serving typically 80% of bank customers who are not generally the target of conventional bancassurance products? was of particular interest because of his introduction to the concept of ‘Inclusive Bancasssurance’.
Rehan reviewed the current state of bancassurance in emerging markets which typically focuses on High Net Worth Individuals (HNWI) and affluent segments generally selling single and regular premium investment linked products.
On the other hand, emerging customers who normally represent 70-80% of the customer base of a commercial bank are often ignored as they are too poor to be sold big ticket wealth management solutions. Interestingly these emerging customers are considered too rich to be served by microfinance institutions and are left behind in terms of insurance products although they are exposed to a number of risks in their daily lives.
To find out more you can contact Rehan Butt at Microensure