While banks sell mostly the most primitive boxed insurance products
One of the trends of 2016 was explosive growth bancassurance, according to some estimates, in 2017 this sales channel may overlap agency sales in terms of fees. But this rise is fraught with danger: bank sales can discredit insurance products in the eyes of consumers.
The growth in the share of the banking sales channel for insurance products in 2016 compared to 2015 is impressive: from 25.8% to 35.2%, it almost caught up with agency sales (38.6%), reaching a historical maximum. According to the forecasts of the NAFI Analytical Center, by 2018 the share of this sales channel will reach 45%. Moreover, the growth of bancassurance is no longer due to insurance of borrowers, but due to investment insurance life (ISZH). At the same time, the bank sales channel accounts for 87% of all life insurance policies, according to the Association of Life Insurers (ALA). The very idea of selling insurance policies through banks is not new, but last year there was a real breakthrough in this direction.
Yurgens: the share of bancassurance reached a historical maximum in 2016
The share of bancassurance in 2016 reached a historical maximum, said Igor Yurgens, President of the All-Russian Union and the Russian Union of Insurers. If in 2015 this sales channel accounted for 25.8% of premiums, then in 2016 this share increased to 35.2%.
“Our company was one of the pioneers of bank insurance. We tried to negotiate with banks on the sale of our retail products as early as 2002-2003,” recalls Alexander Zaretsky, MetLife President and ASZh President. - Then the retail banking market was just getting on its feet. In the early 2000s, leading Russian banks disappeared from the 1990s, Sberbank and Alfa-Bank worked in retail banking. Then new players began to come - VTB, Russian Standard, Citibank, Raiffeisenbank. But in general, in the 2000s, banks were not very willing to look at insurance products - lending was their main source of profit.”
A massive turn towards insurance occurred after the crisis of 2008-2009, when banks began to look for additional sources of income, including commissions - then a boom in bank insurance began, the expert notes. Emphasizing that the life insurance market began to grow after the last crisis and it was then that the leading banks began to create their own Insurance companies. The bancassurance boom went into decline in 2014 after a sharp devaluation of the ruble and the beginning of the current round of the economic crisis.
The new wave of bancassurance is fundamentally different from the first one both in terms of attracting customers and in terms of products offered. The first was related to the insurance of borrowers, in the current driving force is "life", primarily investment life insurance.
Of course, for companies that started building relationships with banks back in the 1990s or early 2000s, the share of borrower insurance in their total portfolio is still high. Moreover, the level of penetration of borrowers' insurance in such companies approaches 100%, and the level of sales penetration for customers who apply to the bank credit matters, much lower. “Depending on the training, alignment and motivation of the bank's selling network, this level can range from 5% to 25%, while 10% is considered a good result,” says Roman Varlamov, head of the banking department at Ingosstrakh. “Mortgages and car loans involve the purchase by the client of more than just the protection of the collateral,” he explains. - In mortgages, in addition to property insurance, insurance is sold for the risk of death and disability of the borrower, etc. a va the borrower's ownership of the apartment, as well as often civil liability insurance to neighbors. As part of car loan insurance, in addition to Casco, the client almost always purchases OSAGO, an accident risk insurance policy for the driver and passengers, sometimes a GAP product (additional insurance up to the full value of the car).
A massive turn towards insurance occurred after the crisis of 2008-2009, when banks began to look for additional sources of income
As a rule, holders of various issues are almost 100% insured plastic cards(except for “salary workers”, for whom the situation may differ), says Varlamov, since the cost annual service cards, "card protection" insurance is included (risks of illegal, unauthorized debiting, theft of money, etc. are covered).
For those who have recently entered the bancassurance market, the portfolio is dominated by ILI, accident insurance (AC), retail property box insurance (IFL) and more exotic products such as job loss insurance. The share of mortgage insurance and auto credit insurance in the total volume of policies sold through banks in many companies now accounts for no more than 20-40%, which is associated with a decrease in lending since 2014.
In IC "RGS Life", which began using the bank sales channel in 2009, now two thirds of the products are sold through banks. « Initially, we concentrated our efforts on the main partner - Sberbank, developing the direction of financial protection of loans, - says Pavel Gurkin, head of the partnership sales department at RGS Life. - In the future, the pool of partner banks was significantly expanded, we worked out new directions, and also connected the RGS Life product line.
For the insurance business of the Uralsib Group, bancassurance is also one of the priority sales channels - about 50% of the total fees. “The main share of the premium falls on investment life insurance - about 70% of the total volume, over the past six months, sales of boxed products have also been actively increasing. Since mid-summer 2016, when the company began to actively promote its policies in partner banks, sales have doubled,” says Maria Malkovskaya, General Director of IC Uralsib Insurance.
In IC "MAKS" about 30-35% of the collection of insurance premiums in all areas falls on insurance contracts concluded with the participation of partner banks.
All insurers - both life and "non-life", and affiliated with banks, and not affiliated, have recently aimed at expanding the list of partner banks. Only in the last two months, Ingosstrakh-Life and UniCredit Bank, Ingosstrakh-Life and MTS Bank, Uralsib Life and Yenisei United Bank, IC Uralsib Insurance and MigCredit, RGS announced the launch of new joint projects Life" and Bank "Zenith", IC "MAKS-Life" and Bank "Vostochny", etc.
Since 2013, when RGS Life began to actively expand the pool of partners, fees in the insurer's banking channel have increased by more than 9 times. At the end of 2016, the increase, according to Gurkin, amounted to 150%. The insurers that have been operating in this market for a long time, for example, Ingosstrakh, which issued the first mortgage policy back in 1998, have a “banking network” of more than 60 partners.
Actively work with insurance companies Sberbank, VTB, Alfa-Bank, Promsvyazbank, Bank Vozrozhdenie, Eastern Express Bank, Setelem Bank, RusFinance Bank, DeltaCredit Bank, SMP Bank, Svyaz-Bank, etc.
The rapid growth in sales of insurance policies through banking channels both pleases and frightens experts. “I see the risks associated with the fact that the bank insurance channel is actually growing at a faster pace,” notes Alexander Zaretsky. “The fact is that today most banks are still not ready to sell full-fledged insurance programs.”
Now, mainly boxed products are sold through banks - as simple as possible, as a rule, with little coverage, not tailored to the individual request of the client. Accordingly, such a policy is often bought “for change” and very rarely renewed, since the client does not see a return on it. Or the client is offered ILI - as investment product, an alternative to a deposit, but with a potentially higher income. And here the client almost never fully understands what exactly he bought. In particular, he does not know about the absence of state guarantees for such products (as opposed to a deposit) or about the impossibility of withdrawing money ahead of schedule. Banks have neither the resources nor the desire to do serious work with a potential insured, they simply use insurance sales as additional commission income in the face of declining consumer lending. As a result, the desired effect of obtaining an "entry point" and involving the client in other types of insurance coverage is not achieved.
Market trends dictate fast and understandable technology sales for both the partner bank and the client - boxed products.
Many representatives of insurance companies speak about the fact that predominantly standardized products are sold through banks, explaining the importance of simplifying the sales process for bank employees.
Maria Malkovskaya clarifies that IC Uralsib Insurance is expanding the coverage of “boxes” for property and liability insurance and corporate clients- Representatives of small and medium-sized businesses, individual entrepreneurs.
MAKS is also actively expanding its line of boxed products, however, the company gives customers the opportunity to choose from several insurance coverage options. “The client can independently choose the amount of responsibility depending on his needs and financial capabilities,” explains Ekaterina Litvinova, Head of the Partner Relations Department at IC MAKS.
“In view of the fact that each bank has its own established audience and business specifics, our task is to offer solutions that will harmoniously fit into the bank’s existing product matrix,” explains Pavel Gurkin, head of the partnership sales department at RGS Life. - Works better in certain cases universal solutions, for example, packaged endowment life insurance (LIC) products. Due to certain specifics of the “box” of the UA, it is more understandable for both employees and customers of the bank. We are seeing an increasing demand for such programs.”
Ekaterina Agafonova, director of the sales management department in financial and credit organizations of IC Soglasie, notes that “market trends dictate fast and understandable sales technology for both the partner bank and the client, and this is the sale of boxed insurance products.” Insurance products on individually agreed terms also remain, for example, with comprehensive mortgage insurance, where an individual approach is required in risk analysis both in terms of title and in the life of the borrower. “In addition, many banks have private and VIP segments, which are dealt with on an individual basis,” the expert says.
In the premium segment, where a client is already assigned a personal manager, the situation is, of course, somewhat different - they offer individual solutions with wide and often exclusive settings. But in the mass segment, we are not talking about such consulting - the bank does not have insurance specialists, and in most cases the insurance company is also not ready to send its people to banks. The majority of insurance companies surveyed by Banki.ru say that they conduct special training for bank specialists selling insurance products, and then supervise them. But this, as a rule, is all and is limited. In rare companies, employees of insurance companies hold meetings with clients, participate in the maintenance of contracts.
According to Alexander Zaretsky, boxed products can work in the mass segment, but on the condition that the person is explained what and why he bought. “I think there are options for how you can sell boxed products in a way that benefits the market. But this requires interest from the bank and additional costs. So far, we see only individual examples of a client-oriented approach, but I think that the market will have to develop in this direction, including under pressure from the regulator,” the expert predicts.
“The regulator is very concerned about high bank fees and the quality of the product sold through banks. Representatives of the Central Bank are talking about it, they are working on it,” explains Zaretsky. The Central Bank plans to introduce basic insurance standards that will regulate how policies are sold, how payments are made, what information the client receives. The SRO of insurers - the All-Russian Union of Insurers - is involved in the development of standards. Zaretsky proposes to make the level of education of those people who offer insurance programs in banks one of the standards. “These people need to be certified and understand how insurance programs work. This is one of the steps that would help improve the quality of insurance services,” the AUJ President is convinced.
In addition to possible disappointment on the part of clients with whom they did not individual work, there is another moment that can slow down the current rise in bancassurance. Banks' interest in insurance may well be temporary. “Many large banks, primarily state-owned ones, do not need deposits now: they do not have such a volume of lending to “recapture” these deposits. A deposit is an obligation to return the money to the client, and even with interest, which means that this money needs to be placed somewhere, - Alexander Zaretsky explains the current interest in insurance products. - When the crisis happened, small banks began to collapse, and customers began to transfer money to more reliable credit organizations, where an excess of liquidity formed. For them, selling insurance is a way to get rid of unnecessary obligations and earn on commissions from the sale of policies. If the situation changes, more active lending will begin, banks will be forced to maintain deposits and begin to regulate insurance sales.”
Therefore, it is possible that banks, which are now willing to “attach” excess liquidity, offering customers to transfer money from deposits to ILI, will lose interest in insurance as soon as the consumer lending market begins to recover. True, this will obviously not happen in the foreseeable future - the consumer lending market is under close scrutiny by the regulator, since, as the Bank of Russia has repeatedly noted, it carries risks for price and financial stability in the country.
On the other hand, the banks are already "hooked" - on good commissions from the sale of insurance products. Moreover, while the sale of these products does not require much effort.
The insurers themselves are confident that the banking channel will continue to develop. “The banking channel has always been a priority for insurers and will remain so. Only competition among insurance companies will become even tougher in a collapsing market. banking services", - Ekaterina Agafonova believes.
“We believe that the entire affiliate sales channel is one of the most promising directions development that will increase client base and the volume of the portfolio of the insurance company without the cost of offices, new employees, - says Maria Malkovskaya. - In the struggle for a client, many banks turn to the one-stop shop, when a financial institution ceases to be just a bank, but is ready to make the widest possible offer to the client, which can cover several of his needs at once. This means that insurance products will be more and more in demand among banks.”
Despite the optimism of the insurance community about the banking sales channel, the most far-sighted try not to put all their eggs in one basket. “At the moment, the banking sales channel prevails in our company. However, we are already actively working on the development of online sales, as we believe that it is impossible not to take into account the interests and characteristics of the growing part of the target audience that prefers digital tools,” Vladimir Chernikov, General Director of Ingosstrakh-Life, told Banki.ru .
06/27/2003, Fri, 16:06, Msk
Moscow hosted a round table dedicated to the problems of optimizing banking processes by means of information technologies. The IT infrastructure of banks is expected to undergo major changes, partly related to the transition to new reporting standards, and partly to the activation of banks in the field of work with private clients. Suppliers of automated banking systems(ABS) are forced to move from "boxed products" to individualized banking services, to supporting individual banking systems. AT banking solutions the high-tech segment is expanding and strengthening, and in these conditions, the role and importance of service support is expected to increase.The issues of IT penetration into banking technologies were discussed with journalists by representatives of companies directly related to the problems of ABS (automated banking systems). So, Boris Ivanov, representative of the development department banking technologies Stins Coman, noted that its division deals with equipment related to plastic cards: ATMs, information terminals etc. Nikolai Krechetov(Moscow representative office of InterSystems) spoke about the main product promoted by the company - Cache, a post-relational database management system, well known in banking. “We supply the tool,” he said. - The company has two major partners - "Programbank" and "Escape / M", - developing automated systems for the largest Russian banks. The Russian office of Liebert-Hiross represented Anna Kulashova. According to her, the basis of IT processes in banks are systems to support uninterruptible power supply and ensure proper microclimate. Liebert-Hiross manufactures, supplies and services such equipment. Lev Bokstein, a representative of Enterasys Networks, noted that the scope of the company lies in the production of network equipment and network management systems.
The participants agreed that in the market of solution providers, the resolution of the Central Bank of the Russian Federation on the transition to international standards financial reporting affect only partly. However, Nikolai Krechetov believes that the transition of banks to the global financial reporting system is positive. Perhaps it will lead to some new round of competition among IT suppliers, some players will leave the market or partially lose their positions.
Optimization and banking retail
One of the most lively topics of discussion was the optimization of banking processes related to servicing individuals, or the so-called banking retail. According to Mr. Krechetov, many medium and large banks, having achieved significant success in working with legal entities, today rushed towards servicing individuals. This decision is provoked by the fact that there are fewer ways for banks to compete today: big players fight with rivals, increasing interest on deposits, deposits and improving other conditions for depositors.
Mr. Krechetov believes that as it becomes more and more difficult to solve the problem of survival in the market by standard means, competitive advantages various banking IT products should become, therefore, ABS suppliers face the task of offering a unique solution for each specific bank. It turns out that the ABS vendor market is forced to move from “boxed products” to individualized banking services, to supporting individual banking systems, which can lead to a significant increase in their own costs and the cost of maintaining such software. The winners of this war will be those companies that can offer a personalized service while minimizing their costs.
Banks' entry into retail, according to Mr. Krechetov, is the reason that will entail significant changes in the ABS supplier market. Companies will be forced to adapt to the new trend and change their approaches to business.
Event in "banking life"
Participants noted that a notable event in the “banking life” of Moscow was the recent appearance of customer self-service points – Alfa-Bank Express offices and Citi-Bank outlets at BP gas stations. This sign indicates that the banks risked turning to face the person. Fortunately, the era of Sberbank's monopoly on working with individuals has come to an end. Retail for banks today is becoming one of the few options for winning in the banking services market, since, according to experts, retail means two hundred million customers.
“The retail business for banks is, first of all, a struggle for the middle class, for people who are used to paying with cards, are not afraid to approach an ATM and feel confident with “plastic” in restaurants and shops,” says Nikolai Krechetov. “The number of transactions per such “qualified” client is quite large, and the bank cannot but be interested in receiving its commissions.”
Optimization of banking processes using IT tools, participants of the round table
ABS providers offer specialized equipment for these services, which allows organizing round-the-clock access of a private person to his account. This is withdrawing money from an ATM, depositing funds into an account, working with an account to transfer money, etc. The user, of course, such things are very convenient. For example, if a driver is stopped by a traffic police inspector at night, demanding to pay a fine at Sberbank, then you can drive up to a round-the-clock point, make a payment using your card and calmly drive on.
A set of equipment designed to solve the problems of automation of retail banking operations, is large enough. However, it is too unlikely that within the next 5-10 years at least a part of what world suppliers are offering can be installed in Russia. In the meantime, an example of the most "radical" decision, which Alfa-Bank and Citi-Bank ventured, was the acceptance of money from the population.
Boris Ivanov noted that Stins Coman proposes to move forward towards providing a full range of services for working with your account, from withdrawing money to participating in various lotteries using a credit card. “By and large, the task of all banks is the same - to bring the service point of the retail consumer to his traditional route during the day,” he said. “Some banks choose a less technocratic approach for these purposes: for example, MDM-Bank uses “live” people working in three shifts at Seventh Continent's cash desks and providing the same range of services.”
Game ahead of the curve
Unfortunately, the "approach of the bank to the person" is seriously hampered by the financial problems of banks. For example, the costs of banks for connecting operating cash desks to high-quality leased lines are very high. Bankers believe that these costs actually nullify the effectiveness of the implementation of the banking system itself. Some banks, knowing this problem, strive to offer "budget" solutions in the conditions of the most modest infrastructure and communication, allowing them to serve their customers even by phone.
Trying to be ahead of the curve, the IT partners of banks today are working very dynamically. It's not just about fulfilling bank orders. Often, integrators, in addition to solutions and products, share their vision of the problems of the banking business, which is no less important for their customers.
Today, in the battle for a retail client, the fight is for every ruble, according to the participants of the round table. And the winner is not only the one whose costs are minimal, but also the one who will respond the fastest to new market needs. There are many examples of this.
According to Anna Kulashova, the well-developed system of Sberbank ATMs throughout the country deserves attention. This bank can be viewed in different ways, but one cannot fail to note its desire for local solutions for end users. According to her, currently Savings bank The Russian Federation is also considering the organization of self-service branches. How technically "advanced" they will be is not yet clear. However, it is known that Sberbank has seven levels of technological equipment for branches: from $500 to $200 thousand (we are talking about the cost of the hardware installed in it).
How to get into the "retail"?
The journalists gave an example of the experience of the Baltic countries in the issue of servicing retail clients. In the Baltic States at every step you can meet mobile banks, with their design reminiscent of Soyuzpechat kiosks. If such a bank cannot cope with the influx of visitors, a larger one is brought to this place, and the smaller kiosk is moved to another point. If the bank does not justify itself, they find a more “fishy” place for it. Sometimes two such kiosks are placed at both ends of a large area, thereby excluding the appearance of queues. There are many such solutions offered today, up to mobile bank branches made on the basis of a conventional truck. Such inventions are used, for example, in Europe during football matches.
However, despite the great desire of banks to “penetrate” retail, they often simply do not have enough knowledge. So, according to Mr. Ivanov, the creators of the Alfa-Bank Express project chose a deliberately losing option. Ignoring the mentality Russian client, they provided customers with an envelope deposit service. Mr. Ivanov believes that it is not typical for a Russian person to come to a mobile bank at night in order to shove "their hard-earned money" in an envelope into an incomprehensible slot. According to him, Stins Coman experts conducted statistical studies, according to which about 80% of respondents refused an envelope deposit in favor of a cash deposit.
Sometimes the bank simply does not understand what solution it needs. “We don't have a culture of calculating profitability in our country,” says Mr. Ivanov. - When buying equipment, the bank does not care at all about how it will use it when it pays for it. Perhaps this skill will come with time. According to him, in the seven years that he has been involved in the automation of banks, there has never been a project where profitability has been calculated. “We connect ATMs to the ABS, requiring at least the presence terms of reference: you should understand what the bank needs, how it will connect, - Mr. Ivanov complains. - And they tell us: "TCP/IP".
Creation of an extensive infrastructure
The construction of a developed network infrastructure, according to the participants of the discussion, plays an important role in the field of bank automation. Lev Bokshtein believes that now the development of networking and infrastructure has reached enough high level. But the main task banks is, rather, to claim what is offered by the developers. “It is clear that any mobile point must be securely connected to its central point,” he says. – And until recently, this meant that a cable had to be laid to the mobile point, which was impossible due to geographical or purely price problems. In addition, this approach somewhat contradicts the very logic of “mobility”.
Mr. Bockstein believes that the networking industry is now able to offer fast and good wireless access. However, the problem of traffic encryption and closing of transmitted information is very relevant. After all, few people want to sit next to mobile bank a person with a laptop listened to all transactions passing through this point. And if today there are many developments on this topic in the world, then in Russia, due to the specifics of our legislation, this potential is still poorly demanded (perhaps this is how Russia supports the domestic manufacturer of coding tools). “In order to get a long-key encoder that will make the villain practice for a month before he gets to my information, I must first get a license from the other side,” says Mr. Bockshtein. - I, as a manufacturer, cannot legally import a coding agent here. The buyer must buy a card from me and then go for its certification, not being sure that he will still receive this certificate.
According to Mr. Ivanov, the cost of communication is also an important problem. Banks today are not going to connect ATMs and mobile points to good lines. About 70% percent of all ATMs in Moscow work using a modem connection and are terribly slow. A similar situation is observed in the field of payment terminals, and in most points that authorize cards: usually, a queue forms behind a person who is going to pay with a card. Mr. Ivanov believes that banks are trying to save money on communications, buying little technology. Therefore, the cost of ATMs has fallen by half over the past few years. Therefore, the quality of communication suffers, the degree of information security is extremely low, and instead of accepting cash in a deposit, there is an envelope deposit. “All this is not encouraging, since swindlers and terrorists will not disappear in Russia soon: there are cases when, instead of money, plastid in an envelope was thrown into an ATM,” he says. - A few minutes later, the ATM exploded, the money spilled out, the criminals took it and left. Banks don’t want to install expensive safes because they have to count every penny.”
Tougher competition
The introduction of new financial reporting standards, the entry of banks into retail will mean tougher competition between them for ABS manufacturers and developers. In the retail sector, most likely, only individual solutions will be in demand. Banks will not be able to work with typical products, because then they will lose their competitiveness. As a result, those developers who can offer banks will win good conditions and quality of service for reasonable money for banks. In turn, banks must understand that individual service and personalized service costs more than just a "box". The question is not to provide a more or less acceptable solution for little money that the bank is not going to invest. The question is how to convince the banks to secure their own future and make themselves competitive.
One of critical issues in the conditions of the escalated competition is high-quality service of ABS. According to Mr. Bockstein, banking structures by the standards of IT companies are considered as "information factories" with a continuous production cycle. However, today there are no absolutely reliable systems, there are no absolutely reliable devices - everything has a chance to break. Mr. Krechetov divided service into two types: hot support and service related to the development of software in banks. In the first case, the main requirement is the quality that the systems must satisfy in the new conditions. Due to a software error, the system should not break. And the one who will make better code will be in a better situation.
As for updating systems, here the advantages will be for those developers who will be able to load some of the new programs into an already working system without stopping or “falling” it. Not all vendors can offer this service yet.
If we talk about the development of automated banking systems (finishing, developing new modules, adding new functionality), then the developer who will be able to reduce costs and whose internal processes will be tailored specifically for an individual service will win here. In addition, according to Mr. Krechetov, the winner will be a company that allows itself to "monitor" remotely every machine installed in the country, as well as be able to predict a possible breakdown of the device. If you combine these two criteria - mobility and predictability - then this will be the key to success. “Manufacturers allow us to carry out this monitoring technologically, and, fortunately, banks understand that their ATM should have a piece of our service program that will allow us to carry out technical control of the device,” he said.
The equipment of networks today is much "wiser". The intelligence hardwired into modern devices is an order of magnitude higher than it was two or three years ago. On the one hand, this reduces labor costs and time spent on administering such a network. After all, what previously required a lengthy configuration or was only possible with a set of devices is now being done with a single device with minimal configuration and minimal problems. Of course, a rather serious plus in this matter is the control system.
By the way, the participants agreed that at the initial stage of projects, banks very rarely think about how they will support the system. And this is another example of an inefficient approach to automation tasks. As a rule, faced with problems, banks begin to think whether to purchase protection in the form of power supplies for each server of their device or purchase some kind of server air conditioning system. This approach increases the cost of the solution three times.
Sales is technology. And some luck.
Are you familiar with the situation when you spend a lot of time and effort to attract customers, hold dozens of meetings and consultations, and, unfortunately, get minimal results? Unlike his colleague, who works less, gives less, and the result is much better than yours. At this moment, you are visited by the thought: “Why is this happening? I work more and get less results? I guess I just got unlucky this month….” Of course, you can refer to failure, only your productivity will not increase from this.
Ownership plays a much bigger role in sales. sales technologies. In this article, we will consider one of the basic technologies - classical 5 step sales model banking products.
It is this model that most managers of bank branches use, it is this algorithm that is considered in basic sales training. What is the essence of this algorithm?
Before going directly to sales stages, I would like to make a small lyrical digression and say one important thing. Why is it so important to master sales techniques? The fact is that sales are not a spontaneous process with depending solely on your luck. In sales, 80% depends on how professionally You can build a dialogue with the client, which tools You use how you work with customer objections. As soon as you master the necessary technologies, you will be able to sell much more.
In this and subsequent articles, I will tell you about standard (classic) sales models, as well as about nuances application of various methods and technologies in the banking sector. We will cover most mistakes, which allow 90% of managers when communicating with customers. As a result, all this will allow you increase sales at your bank office and, if necessary, make the necessary adjustments to customer service procedures.
Well, are you ready? Then let's consider classic 5 step sales model.
We will consider exactly the 5-step model, although there are modifications of this model with a different number of steps (5, 6, 7 sales stages).
The idea of this approach is that the sales process can be represented as such stairs:
Climbing up this ladder step by step, with each step you get closer and closer to your goal - for sale. Working according to this algorithm, it is important to follow all the steps, move successively rather than abruptly jumping from one step to another.
As you can see, each stage has your goal:
1.Establishing contact - to arrange the client, create a friendly atmosphere, "favorable" ground for subsequent sales.
2. Identification of needs — it is important for the manager to understand which product will best satisfy the needs of the client, to find out the most important and most significant points for the client.
3. Product presentation – to tell about the most suitable product for the client in an understandable language, to make the client want to use a banking product or service
4. Work with objections - dispel all doubts and give reasoned answers to the client's objections
5. Completion of the deal - to say goodbye to the client, thank you for your cooperation and invite you to come again.
Your task, as a manager and negotiator, is first and foremost to make sure that the goal of the current stage has been achieved, and only then move on to the next level.
I often come across this situation: the client comes to the office, the manager is interested in how he can help the client.
Manager: " Hello Ivan Ivanovich, how can I help you?»
Client: "I would like to open a deposit"
Manager: “Excellent Ivan Ivanovich. we have deposits in the bank with replenishment, there are with the withdrawal of part of the deposit, there are with increased percentage, for example, for 1 year the rate will be 11% per annum, though there is no capitalization, but a plastic card is issued as a gift. What contribution will we make out?
And it can take a long time...
……………………………………………………………………………………..
QUESTION: Colleague, how do you assess the manager's behavior? What moment do you think was missed? What did the bank manager do wrong?
It is very interesting to hear your opinion on this situation. And I will voice my opinion in the next article! Remember that I regularly give nice gifts to all active subscribers 🙂
In addition, in the following articles we will dwell in detail on each stage of sales, analyze the main points, typical mistakes and "little tricks" to improve the efficiency of work with clients.
Sell beautifully and easily!
Sincerely, Oleg Shevelev ( be friends on VK , instagram)
Given the weak growth in lending, banks began to actively sell insurance products. This year they have already earned almost 60 billion rubles from the sale of policies.
Photo: Mikhail Mordasov / RIA Novosti
The cooperation of insurers with banks is more and more like a business of equal partners. Previously, insurance companies were perceived by banks only as weak side transactions - insurers were required to keep funds in bank accounts to access borrower insurance programs, and commissions from the sale of insurance reached 90% of the policy price.
The situation began to change after the crisis of 2014, when banks faced stagnation in lending. According to the results of nine months of 2016, banks managed to earn RUB 59.8 billion from commissions from the sale of insurance products. Selling policies has become an essential business for the credit sector.
Insurers, in turn, receive from bank sales 23.1% (204.7 billion rubles in the first nine months of 2016) of all fees on the market. This is the second largest sales channel after the agency channel for companies, says Olga Basova, director of insurance ratings at RAEX (Expert RA). Through individual agents, insurers received 237.4 billion rubles for the three quarters of this year. fees (26.8%). At the same time, the average commission percentage for banks, according to the Central Bank, is decreasing (29.1% in the nine months of 2016 against 30.6% a year earlier). However, this figure is still higher than the market average remuneration for intermediaries (21.2%), and the commission of individual agents is about 16.4% of the policy price.
However, this is the official data of the regulator. The real commissions of banks are much higher than the statistics, financiers admit. The type of products most sold through banks is life insurance: accumulative, investment, credit (in the nine months since the beginning of the year, policies have been sold for 124.5 billion rubles). The bank commission on the borrower's life insurance policy is still prohibitively high - 50-90%, on average - 75%, says a market participant (according to the Central Bank, 40.6%).
For accumulative and investment life insurance (LIS; banks offer it as an alternative to deposits), the commission depends on the term of the contract: the longer it is, the higher the percentage of the bank. According to ILI, it is 7-20%, on average -12%, says the financier. For accumulative policies (NSZH), the commission is not calculated on the entire amount of the premium, but on the contribution for the first year: the client makes contributions in installments, and not at a time. For the sale of the UA policy, the bank usually gets from 40% of the amount of the first installment (for a five-year contract) to 120% (for a 20-year contract), says a market participant.
"In the bank VTB income from the sale of insurance and other agency products is about 40% of commission income for retail clients, ”says Natalya Sumakova, head of the bank’s savings and commission products service (VTB24 commission income for the nine months of 2016 amounted to 41.2 billion rubles, follows from the reporting jar). And at Promsvyazbank, insurance commissions amount to up to 30% of the total commission, Natalia Voloshina, director for deposit and settlement products of the bank, cites data (commissions, according to the bank's statements, amounted to 14.3 billion rubles for the first nine months of 2016). In turn, the agency commissions of Sberbank for the nine months of this year increased to 7 billion from 5.1 billion rubles. a year earlier, follows from the reporting (net fee and commission income - 251.7 billion rubles). How many commissions were received precisely for the sale of insurance, the bank did not specify. By the end of the year, Sberbank's income from the sale of insurance, investment and pension products of subsidiaries will grow by more than 40%, according to Maxim Chernin, director of the customer welfare department at Sberbank.
From borrowers to property
For insurers, banks remain a profitable channel, as low-loss contracts are sold through them in large quantities - policies against accidents (AC) and illness, from job loss, adds Olga Basova. “If the insurer is in the same group as the bank, the “profit center” shifts from the insurance to credit institution", - explains the head of the insurance ratings department of the National rating agency Tatyana Nikitina. Insurers agree to high commissions, because the tariffs for life insurance and from the National Assembly, as a rule, are too high, admits the president of the All-Russian Union of Insurers Igor Yurgens: “There is a place in the tariff structure for bank commission, and for the income of the insurer”. But recently, banks are ready to reduce commissions in favor of expanding coverage under the policy, Alina Sokolova, vice president of AlfaStrakhovanie, notes.
The dependence of insurance companies on the banking sales channel is heterogeneous, but it is especially noticeable in life insurance. In IC Uralsib, bancassurance takes 40% of the total fees (including life insurance), in AlfaStrakhovanie - about 30%, company representatives say. At the same time, AlfaStrakhovanie-Life's share of the banking channel reaches 70%, which is the same for Rosgosstrakh zhizni. And the universal insurer Rosgosstrakh, with the participation of banks, collected 10% of the premium in three quarters of 2016, said Maria Zybina, vice president - head of the partnership sales unit of Rosgosstrakh.
In SOGAZ, bancassurance accounts for 5% of fees, said Damir Aksyanov, Deputy Chairman of the Board. At the "daughter" of the company - "SOGAZ-Life" 28% of the fees for the nine months of 2016 came through banks.
Until 2014, borrowers' insurance was the main source of commission income for banks, says Natalia Voloshina. Since the slowdown in lending rates in 2014, banks began to look for alternative sources of commissions and found them in the form of selling accumulative and investment life insurance, as well as all kinds of “boxed” products. “Boxed” insurance differs from the usual one by unified conditions and a set of risks, and most importantly, it does not require inspection of the property.
In addition to “life” and the National Assembly, insurance for houses, apartments, liability, policies for those traveling abroad, insurance against card fraud and even tick bites are sold through banks in this way, lists Alina Sokolova. The Uralsib insurance holding sells almost all retail products through banks, says Natalia Nekhorosheva, head of the business development department of Uralsib IG.
Home property insurance is the third most popular product in the banking channel after “life” and NA, Igor Yurgens notes. “The interest of bank insurers in this type is due to the fact that it does not require special risk management, special competencies and large investments in business infrastructure and loss settlement, unlike Casco and OSAGO,” he explains.
Property insurance is the most popular "box" sold through VTB24, confirms the first deputy general director " VTB Insurance» Oleg Merkulov (such insurance accounts for 30% of all VTB Insurance policies sold through VTB24). The next most popular is insurance against job loss (22%), followed by children's health insurance and policies in case of diagnosing cancer (18% each).
“Boxes” are standardized products that are not difficult in terms of sales and are in demand in banks,” explains Damir Aksyanov. Non-related sales banking business insurances are developing inactively, he believes, because it requires more time and deeper knowledge in insurance from sellers. Therefore, companies prefer to pack a standard set of risks into a “box”. However, "boxed" products are not the only rate of insurers in cooperation with banks. According to Oleg Kiselyov, president of Renaissance Life, the future of the bancassurance market belongs to UA: “The product brings the maximum benefit for the bank and the insurance company and, most importantly, the maximum value for the client - it combines both protection in the form of a large insurance coverage and profitability . While credit insurance only provides protection against risks, ILI is more aimed at increasing capital.”
Partner banks can also become clients of insurers: they insure property, liability of directors and officials, transportation and storage of valuables, ATMs, car parks, Alina Sokolova lists. In addition, banks buy insurance for employees - medical, from the National Assembly, travel. But partnerships with the bank do not give insurers special privileges, Natalya Nehorosheva draws attention. Partnership agreements and the relationship of the insurance company with the client are parallel processes, she explains. When choosing an insurer, the cost of services and their list are taken into account, and other people who take into account other things are responsible for partnership agreements: conditions for clients, commission, product package.
