html5-img
1 / 30

Bancassurance in Lebanon AROPE and BLOM Experience

Bancassurance in Lebanon AROPE and BLOM Experience. Table of Contents. Bancassurance: Regional Trends Lebanese Model proposal Lebanese Insurance Market Bancassurance in Lebanon Arope / BLOM experience. Bancassurance: Regional Trends.

knoton
Download Presentation

Bancassurance in Lebanon AROPE and BLOM Experience

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Bancassurance in LebanonAROPE and BLOM Experience

  2. Table of Contents • Bancassurance: Regional Trends • Lebanese Model proposal • Lebanese Insurance Market • Bancassurance in Lebanon • Arope / BLOM experience

  3. Bancassurance: Regional Trends Bancassurance is the distribution of insurance products through bank channels. • Europe discovered Bancassurance in the late 70’s and according to a recent study conducted by “AM Best” , significant changes are expected in the Middle East moving over a Bancassurance Distribution Model.

  4. Bancassurance: Regional Trends Projections: Growth forecasted for Premiums in Personal Lines insurance over the coming 3 to 5 years, mainly due to the following factors: • Expatriate workers are prompting the development of compulsory medical and motor insurance>>impact the concept of insurance among locals • Regulations Reforms that provide a comprehensive insurance framework and open the region to foreign investment • Low insurance penetration rates in the region’s countries.

  5. Lebanese Model Proposal • Similarities between our both insurance markets: • Environment effects • Cultural beliefs • Client behavior These similarities lead us to believe that ultimately, the Syrian market will be developing in a similar way to the Lebanese, especially in the area of Bancassurance.

  6. Lebanese Insurance MarketSocio-demographic environment • In 2003, Lebanon’s GDP was around $19 billion, two-third of which came from the Services Sector • The Lebanese Population is estimated at around 4 millions • Two-third of the Population is in the 15-64 years age bracket • Life Expectancy at birth is estimated at 72years.

  7. Lebanese Insurance MarketSocio-demographic Environment • Active population constitute 40.5% of total population, nearly 1.62 million • 83% of the active population work in the private sector • 40% of active population hold “white collar” jobs.

  8. Lebanese Insurance MarketMarket Figures Non Life (2003) Penetration Rate 2.1% Per Capita Density $95 Life (2003) Penetration Rate 0.7% Per Capita Density $35

  9. Lebanese Insurance Market Non- Life Market ( in Million USD)

  10. Lebanese Insurance MarketLife Market (in Million USD)

  11. Lebanese Insurance Market Non-Life Density in selected countries Density in Lebanon is small by world standard

  12. Lebanese Insurance MarketNon-Life Penetration Rate in Selected Countries This rate is the highest among Arab Countries

  13. Lebanese Insurance MarketOpportunities • Potential for a future market growth: only 30% - 35% of the Lebanese population is insured and awareness is growing. • Insufficiency of NSSF and Government participation in covering all medical needs of populationand retirement schemes.

  14. Lebanese Insurance MarketOpportunities • Compulsory motor insurance (bodily injury only) was introduced in 2003 • Insurance for expatriates is also compulsory • workmen Insurance is compulsory, but not yet in force • Introduction of new law for Public safety in 2005: Decennial for new buildings, Third Party for elevators and Earthquake.

  15. Bancassurance in LebanonMarket Size • Bancassurance operations are estimated at around 20% of the total Lebanese insurance market in 2003. • In the Life sector, premiums increased six-fold over the period 1992-2002, with growth mainly fueled by the introduction of Bancassurance during the last few years • Today, Bancassurance accounts for 31% of all life premiums.

  16. Bancassurance in Lebanon Different Business Models • Banks with participation in Insurance Companies • Insurance Companies fully or partially owned by Banks • Banks writing insurance through their fully owned Brokerage Firms.

  17. Bancassurance in Lebanon Market Facts • 47% of Lebanese banks sell insurance products OTC • 21% of Lebanese banks work only through affiliated insurers • 18% of banks work through independent insurers • 8% of banks work through both affiliated insurers and independents insurers.

  18. AROPE/BLOM ExperienceBLOM Bank Group • BLOM Bank • Network of 44 branches in Lebanon • Off-shore Banking Unit in Limassol, Cyprus • Branch in Damascus Free Zone • Branch in Amman, Jordan • B.S.O,بنك سوريا و المهجر 2 branches in Damascus, 1 branch in Aleppo & 1 branch in Latakieh. • BLOMINVEST, the group’s Investment Bank • Banque Banorient, located in Geneva • Banque Banorabe, H/O in Paris with branches in London, Dubai, Sharjah • AROPE Insurance, H/O in Beirut and 5 branches in Lebanon

  19. AROPE/BLOM ExperienceBLOM Bank • Largest Bank in Lebanon since 1981 till 2004 • BLOM chosen as the best Bank in Lebanon by renown international sources: the Banker, Euromoney, Global Finance and Capital Intelligence

  20. AROPE/BLOM ExperienceAROPE Insurance AROPE Positioning • Consolidated results based on regular growth since 1974 • Among the best: 7th rank within a market of 56 Insurance companies . • First Insurance company ISO certified • Pioneer in the Bancassurance model creating a financial “ one stop Shop” solution. • AROPE Insurance was established in 1974 to: • Handle BLOM’s own insurance business • Supply BLOM clients with all their Insurance needs

  21. AROPE/BLOM Experience AROPE Financial Indicators • New Decree: • R.O.E.: 20.39% • Solvency Ratio: 45.47%

  22. AROPE/BLOM ExperienceBenefits for BLOM Bank • New source of revenue (in tightening financial markets) • Leveraging existing infrastructure (network, front office employees, IT, etc.) • Strengthening relation with clients (continuityinsured by renewals of policies).

  23. AROPE/BLOM Experience Benefits for Arope • Using a large existing Network • Large Existing Client-base allows for synergies in marketing: “A good Bank client is a good Insurance client” • Development of Personal Line / Retail insurance business (easy marketing via bank branches) • Risk diversification (large number of small policies in portfolio) • Low operating & distribution cost • Limited collection problems

  24. AROPE/BLOM ExperienceBenefits for Clients • Value-added service • Convenience: One-Stop Shop for all their financial needs • Payment facilities

  25. AROPE/BLOM Experience Bancassurance Operations Direct Bancassurance : OTC products • Motor Compulsory Bodily Injury • Motor Material Damage • Travel • Property (office and home).

  26. AROPE/BLOM ExperienceArope Products

  27. AROPE/BLOM Experience Bancassurance Operations Indirect Bancassurance: BLOM retail products • Retirement Plan: Damanati • Education Plan: Waladi • Car Loan: Sayarati • Consumer Loan : Kardi • Home Loan: Darati • Credit cards

  28. AROPE/BLOM Experience BLOM Retail

  29. AROPE/BLOM Experience IT Solution Two existing models of IT solutions: • Online: One database for both, Bank and Insurance Company • Off-line: Separate Database We opted for the second option for Banking Secrecy’s sake

  30. كلمتنا كلمة. Thanks for your attention !

More Related