Insurance companies have been urged to partner with banks in order to easily penetrate different markets and maximize sales opportunities on Bancassurance products.

This partnership according to the Managing Director of NSIA Insurance, Mable Nana Nyarkoa Porbley, will help the banks, the insurers and the clients in many ways.

Mrs. Porbley who was speaking at the 2016 Bancassurance Conference in Accra said, "When insurers partner banks it helps in future designing and pricing of products as the banks bring to the partnership a wealth of insights into client lifestyles and expectation; which means that the insurer is able design the right product at the right price for the client". Adding that the banks’ branch network brings the geographical spread - allowing easy access to insurance.

“If Bancassurance products are strategically placed in the banking space it brings convenience to the clients as they get the opportunity to do their banking, pay bills and get insurance at one point.

While the insurance company is able to expand its client base, without necessarily increasing its direct sales force or brokers, the NSIA MD noted that the banks also benefit because as the clients have all their needs met at one bank ‘client stickiness’ will also be ensured.

“The insurers brings client stickiness meaning the clients have more than just banking services with the banks and the probability of sticking to that bank is higher,” she noted.

How partnership helps maximize sale of Bancassurance products

According to Mrs. Porbley, maximizing sales of the products is based on how efficient and innovative the partnership between the insurer and the banks is.

She advised that the two parties involved to be critical about the management structure not forgetting innovation - in order to ensure efficiency of the partnership between the parties so as to increase sales in the Bancassuarance space.

Mrs. Porbley underscored the level of training done in the Bancassurance space urging insurance companies to invest and ensure that the bank's staff and sales agents are frequently trained on Bancassurance products.

The Managing Director of NSIA Insurance has also said apart from investing in the sales agents, insurance companies must find innovative ways to market their products.

“You cannot do Bancassurance successfully without innovation. Be innovative with responding to trends, product designs, technology and the lifestyle of your clients to help tailor products to suits clients’ needs,” she said.

About Bancassurance

Though in its early stage in Ghana, Bancassurance which originated from France has now become a strategic business model for many insurers around Asia, Africa and Latin America.

However it was earlier prohibited in most parts of Asia but lately contributes greatly to the Asian economy.

Besides brokers, agents and direct businesses Bancassurance has provided insurers the opportunity for additional distribution line and proven to be an effective and efficient distribution channel in and around the world.