Marketing of Insurance Services in Bank X

Bancassurance is a collaboration in marketing insurance products in a bank. If we compare the products of this joint collaboration between banks in Slovenia, we find that all banks make great efforts to acquire new clients and, of course, wish to retain existing clients with good offers. The fifth chapter includes an analysis of the customer opinion survey, that is, borrowers, as well as conclusions and findings regarding customer satisfaction with the life insurance offer for borrowers. The sixth chapter comprises proposals and recommendations for improving and expanding the existing life insurance offer for borrowers, intended for the management and those responsible for this area in Bank X.

Problem

Bancassurance is a collaboration in marketing insurance products in a bank.

Solution and Method

If we compare the products of this joint collaboration between banks in Slovenia, we find that all banks make great efforts to acquire new clients and, of course, wish to retain existing clients with good offers. Compared to other countries, the Slovenian banking and insurance market is extremely small, whilst the number of banks and insurance companies is increasing, which consequently intensifies the competition for clients amongst them. Bank X was amongst the first banks in Slovenia to begin marketing insurance services.

The agreement on marketing insurance services in the bank was signed with insurance company XZ as early as 2002, and since then several joint projects have been successfully implemented; some products, however, are permanent fixtures that have been marketed since the beginning of the collaboration. The offer is continuously supplemented and improved. Like Bank X, other banks in the Slovenian market successfully adapt to the wishes and needs of clients, therefore it is essential to monitor the competition and respond to market conditions.

The diploma thesis in the third chapter presents Bank X and the insurance products that Bank X markets, and presents in depth the product of the latest joint collaboration, namely life insurance for borrowers. The fourth chapter presents four competing banks and their life insurance product for borrowers, for which a comparison was made with Bank X.

Results

The fifth chapter includes an analysis of the customer opinion survey, that is, borrowers, as well as conclusions and findings regarding customer satisfaction with the life insurance offer for borrowers. The sixth chapter comprises proposals and recommendations for improving and expanding the existing life insurance offer for borrowers, intended for the management and those responsible for this area in Bank X. This is followed by a conclusion with a brief summary of findings in the seventh chapter.

In today's crisis times, both in banking and in the economy, it is known that banks in the battle for the largest possible market share face stronger competition than ever before. Both domestic and foreign banks are well aware of this, and if they wish to ensure long-term survival, they must exploit all opportunities to achieve competitive advantages. Bank X, as one of the largest banks in Slovenia, was amongst the first to begin marketing insurance services in 2002, thereby also securing a certain competitive advantage, but other banks are also responding to the wishes and needs of clients.

In order to maintain its competitive advantage, it continuously monitors the competition and reacts intensively to every change in the insurance services marketing market. In accordance with this, together with insurance company XZ, it also continuously improves its offer and comes to market with ever new products, and of course also works extensively on improving the already existing offer. The diploma thesis described the offer of existing insurance products in Bank X and compared this offer with the competition.

Particular attention was devoted to the life insurance offer for borrowers, which is also the latest joint project of Bank X and insurance company XZ. On the basis of the comparisons made, it was established where the advantages and where the weaknesses of the mentioned insurance lie in comparison with Bank X and selected banks in Slovenia. When searching for data, it was anticipated that difficulties might be encountered given that the data are confidential to the bank and insurance company, but publicly available data were used and no particular difficulties were encountered.

A survey was conducted amongst clients regarding awareness of the marketing of insurance services in the bank and also regarding awareness of the life insurance product for borrowers. Particular focus was placed on satisfaction with the existing offer and on wishes for a new or expanded offer of this form of insurance. The objectives of the diploma thesis were fully achieved, as the conclusions reached provide good guidelines for the future.

On the basis of the research results amongst clients, proposals and recommendations were also prepared for the management of Bank X and also insurance company XZ. Most of the proposals are feasible, and the purpose of the research and diploma thesis is that these proposals would also be used in practice.