Banks are seen to play a crucial role in promoting financial literacy and financial inclusion. That is why banks are fast becoming one-stop shops for financial products. More than just savings, investments, and loans, banks now also offer insurance products, both the life and non-life types. This is called bancassurance.
In bancassurance, banks work together with life insurance companies to provide a wider range of financial products including protection coverage, health coverage, retirement planning, and estate planning as well as savings and investments bundled with insurance coverage.
Here are some of the reasons why bancassurance is a good channel for financial services:
Security: Bancassurance companies are secure as they are regulated by two government bodies, the BSP and the Insurance Commission (IC). This means they have to follow the stringent rules and policies of both regulators in terms of capitalization, reserves, selling methods, and investments.
Accessibility: Bancassurance is accessible because one can transact or get customer service wherever the bank has a branch such as any of the 800 BPI branches across the country). This means you don't have to rely on just your home branch or branch of account.
Convenience: Bancassurance is convenient as you will not have to rely on the availability or schedule of just one agent. You get the advantage of transacting or doing business with any bank branch at your convenience.
Connectivity: With bancassurance, you gain a network of professionals, from your financial advisor to bank managers and officers, who can help, assist, and guide you in understanding insurance and investments.