Why getting insurance from a bank is the option no one knew they needed

Knowing and choosing the right insurance sounds like a lot of effort when one tries to understand proposals on their own, while being insured looks like trouble for most people with all the processes they have to go through in getting and keeping the life coverage they need. Financial jargon adds up to the confusion and clouds their decision on whether the policy they’re considering is something that really fits their need or something they are just settling with.

In reality, people don’t have to rely on one person or endure going through many steps because the quickest and most convenient avenue to buy insurance today isn't hard to find--a bank.

Bancassurance, the partnership between a bank and an insurance company, means life insurance products can be sold within the premises of the bank. It’s no different from making a deposit or withdrawal over the counter. This gives customers the advantage of convenience for any transaction in any branch of the insurer's partner.

Usually, customers first of all have to seek assistance to get insured and walk them through making transactions, changes and claims from there. Bancassurance provides customers with easy access anywhere to comprehensive insurance products without heavily relying on that one person for transactions.

Joseph Philip Anthony S. Parungao, Senior Vice President of the Bank of the Philippine Islands (BPI)--the leading provider of financial services in the Philippines, said that the bancassurance model also benefits the middle-income earners of the population most. BPI-Philam, the country's top bancassurance firm is BPI's joint-venture with the Philippine American Life and General Insurance Company.

“The traditional insurance distribution model is pre-disposed to the high-tier income earners, this is probably why the insurance penetration rate in the country is low and the protection gap is consequently high," said Parungao. "Thanks to the emerging trends on microinsurance distribution via pawnshops and remittance centers, the penetration rates are improving. Bancassurance meanwhile effectively addresses the middle-income earners by providing access to insurance products with easy access via bank channels, and affordable terms that fit their monthly cashflows.”

While this model for financial services isn't an entirely new concept and has been widely implemented in foreign markets like France and India, there are many things Filipinos can gain from it.

Convenience, convenience, convenience

First off, getting a policy could be a long process that requires a lot of back and forth between agent and customer if the customer isn’t familiar with the ropes. Under bancassurance, the transaction is simplified and handled by the institution itself, allowing the customer to have the freedom to transact in any branch of the bank in the country.

Bancassurance also gives the customer a one-stop shop for financial services--whether it’s opening a savings account, applying for a loan, or getting oneself and family members insured, Filipinos won't have to go to separate offices or depend on the availability of the agent. This efficiency gives policyholders more time to do the things they love with their loved ones.

“Convenience of the one-stop-shop financial services supermarket is the fundamental and most significant benefit of partnering with a Bancassurance firm. Within one secure and stable bank relationship, the consumer has the distinct advantage of being able to access solutions that help manage payments, savings, credit, investments, plus protection. Bancassurance makes it easier for Filipinos to manage risk and protecting the financial wellbeing of their families.”

This model also comes in handy when changes need to be done to the policy, or it's time for premium payments. By doing business with a bank that has more than 900 branches across the Philippines, making quick changes won't be a hassle because there will always be a branch accessible to the client.

Trusted financial partner

Finally, the partnership with the banking institution assures clients that their hard-earned money is in experienced and trustworthy hands. By gauging the partner bank's credibility, any person looking for a dependable financial partner can easily spot one through a bancassurance firm.

With the combined expertise and resources of the two companies, policyholders are assured that their insurance is backed by financial strength and stability.

“The customer experience with Bancassurance has greater ease and stability since the relationship is not with one individual but with two highly regulated institutions, the Bank and the Insurance Partner. Consumer protection regulations are diligently observed, and should a customer wish to seek redress they have the option of going to either the Banko Sentral, the Insurance Commission, or both. This dual governance structure is only available in Bancassurance,” said Parungao

About BPI-Philam

BPI-Philam Life Assurance Corp., is a strategic alliance between two leading companies in the country – The Philippine American Life and General Insurance Company (Philam Life) and Bank of the Philippine Islands (BPI). Philam Life is the premier life insurance company in the Philippines and the market leader for over 70 years. BPI is a leading commercial bank in the country with over 160 years of experience in the local banking industry and an extensive branch network of more than 800 branches and 3,000 ATMs.

BPI-Philam was recently hailed the Philippine's Best Life Insurance Company for 2017 by international finance magazine, World Finance. This win is a shining testament to the best quality service BPI-Philam has afforded Filipinos throughout the years with their accessible and comprehensive offerings.

BPI-Philam’s professional and expertly trained Bancassurance Sales Executives are assigned in BPI and BPI family Savings Bank branches nationwide to render financial advisory services that address customers' financial and protection needs.

With the combined expertise and resources of these two trusted companies, BPI-Philam policyholders are assured that their insurance is backed by financial strength and stability