Understanding Bancassurance

Bank insurance services or also called as bancassurance, refers to the partnership formed between the bank and the insurance company. The agreement allows the insurance company to offer and sell its products and services to the bank’s clients. This type of partnership is equally profitable for both parties. Every time the bank makes a sale, they share the commission with the insurance company. The bank gains additional profit from a sale while the insurance company earns without having to hire extra manpower. It’s practically a win-win situation. The bank teller becomes the point person instead of an insurance agent when it comes to dealing with the customer. The insurance agency provides continuous support to the staff by providing them with product training and promotional materials. There are some insurance agencies that still use brokers aside from the bank.

In some countries, the practice of bancassurance is proven to be effective in their specific market. However in other parts of the world, bank insurance services are not permitted by the government.

How it Works

In bancassurance, the premium is received by the bank through automatic debit from the customer’s bank account.  The payment process between the bank and insurance company is already automated. Life insurance policies are incorporated to the bank’s products and services. However, there are some restrictions when it comes to selling life insurance with regards to the bank staff. Most investment based policies can be handled only by accredited financial advisors. In effect, banks have expanded their workforce to authorized financial advisors to sell their products exclusively.

A private bancassurance is another classification that follows the same practice. It refers to a combination of private banking and investment management that is followed by many banks and insurance companies. This method is developed to provide protection for business owners and investors. There are different business models that are practiced by several banks and insurance services. One is where the bancassurance is incorporated to the business of the bank. Another is where the bank uses financial advisors to sell the products to the clients. Both methods affect the business structure between the bank and insurance agency. Choosing which business model to follow will depend on the restrictions such as qualifications of the sales person, type of insurance product or agreement between the bank and insurance company. Bank insurance services provide several advantages such as providing financial stability, protection from financial damages, supporting the banking industry and economic growth.

Purchasing an insurance policy from the bank has its advantages. You get the convenience of dealing with one company instead of talking to different organizations. This saves the headache of entertaining different people. Oftentimes, you get to hit two birds with one stone by doing your bank errands and insurance transactions in one go. When making a decision whether to purchase an insurance policy, it is better to seek help from financial advisors. Ask them to explain to you the coverage and benefits of your policy. Before you decide on getting one, check the different insurance companies and bank institutions that offer insurance policies. Compare the premium, costs, terms and process and pick the best one that you feel is most suitable for you.

Getting to Know the Insurance Agent

Looking for a job in the financial service industry? How about working in the insurancesector? Becoming a life insurance agent does have its appeal. However, just like any other employment position, you should know first what you are getting into. It’s important to get to know the industry you are planning to be part of. Research on potential companies you wish to pursue. Check their competitors. Study the products and services they offer. Brush up on your skillset based on the requirements and qualifications of the position you are applying for. Learn the craft and understand how the industry works. If you feel that you are capable of working as an insurance agent, then here are a few things you need to know.

There are several types of insurance in the market including auto insurance, health insurance, property insurance and other categories. However, the most top selling and money maker of all is the life insurance. This policy helps protect individuals, families, businesses, employers, employees and other parties from potential financial loss due to cause of death.

The Roles and Responsibilities

An insurance agent is responsible for providing the client with all the essential information stated in the policy. It is the agent’s job to advise the clients on what kind of insurance is most suitable for them. The agent provides a detailed proposal or quotation indicating the premium of the policy. This job requires field work. An agent is always on the look-out for potential clients who might be interested to purchase an insurance plan. It can be a mix of new and old customers. Never discard your existing policyholders because you can always sell them your other products or they might even decide to upgrade their current plan. Your clientele can also speak on your behalf and possibly refer you to their family and friends.

Skills and Qualifications

Becoming a successful insurance agent takes a lot of dedication, patience and hard work. Most often than not, agents face more rejections as opposed to getting a positive response form their clients. Welcome to the world of sales. If you feel you are tough enough to accept and endure rejection then it’s a good sign. As long as you have the guts and willpower not to give up, you will have many opportunities and benefits from this profession. Remember, insurance agents have the potential to take home big paychecks.

Most insurance companies do not require their agents to have a formal education or previous background. They provide extensive training programs and seminars for their new and current agents. During these trainings, companies discuss product information, sales strategies and basically train the agents how to sell their insurance policies. Before you become an agent, you need to pass mandatory licensing exams. An agent must be licensed to be able to sell insurance policies.

When it comes to personal skills, you need to have the drive and motivation to become successful in this kind of industry. It takes a lot of courage and determination to survive in sales. When applying for a job, you should be able to show that you have the initiative and resourcefulness to perform the responsibilities of an insurance agent. It is a tough job but the results and benefits are rewarding.

Commercial Business Insurance in Barrie

Every business venture involves taking a risk. Once you get into the business, you take the first big step in being successful. However drawbacks arise, that might take you few steps behind. If no preparation was made for them, this can be a major setback in their future in the business. It therefore always advisable to take cover, such that in case a storm blows over your business venture, you can get back on your feet in time and pick up from where you left, there having been little setbacks but not major setbacks that may warrant closure of your enterprise.


Importance of commercial insurance

Commercial insurance for any business covers any disruptions that may occur in the course of business and interfere with the normal operations of business. This could be from claims made or natural occurrences that interfere with business operations. Having the cover enables you get back up and running faster than other Barrie business that is affected.

Commercial cover against liability allows your business to continue in operation even the in the face of significant claims against them. The insurance caters for the claims hence no more money other than the premium will go out of the enterprise to provide for demand.

Faster replacement of assets in case of theft or breakdown of machines that are beyond repair. Depending on the cover you take, your business assets will be replaced in time to enable you to continue your operations, while they still investigate the theft or whatever caused the damage to the property. All in all your business will be up and running, without interference.


What the commercial insurance covers

Liability insurance

Liability insurance covers any claims from third parties who may suffer harm or injury, say from objects falling from your business premise and others from using your products. Claims could be quite expensive to settle and may negatively impact your business’ going concern, the commercial insurance Barrie comes in to help by taking the liability all to themselves and paying it on your behalf, to the extent of your cover.

Business disruptions

By any chance your business is disrupted, your insurance steps up to settle this and get back working in time. They are there to prevent any loss you may suffer as a result of not being in operation even for few hours. Each cover, however, depends on your agreement at the time of contract.


Some commercial insurance policies include theft clause in their policy. This mostly happens in areas prone to theft but to most Barrie business owners, it serves as insurance in case it happens. It is better to be safe than sorry.

Employee compensation

This covers employees against any harm that may occur to them in the course of employment. It enables them to claim payments as well in case of delayed payment.


Choose the best commercial insurance company in Barrie

The principle concern in choosing the company to cover you is whether they provide the cover you want. Weigh their options against yours before you decide to take up the cover with the enterprise. A good company should listen to you and make amendments to accommodate all clients even at a higher fee as long as the customer gets what they need.

How affordable are the premiums; in as much as the cost of the risk covered shouldn’t matter, you need to consider the affordability of the premiums otherwise you may take up a policy they end up dropping it along the way due to an accrual of premiums.

Claim procedure; the procedure should be quick and workable, this minimizes the time one has to wait to be compensated, while the business operations are still pending. The company ought to have a good customer policy as well

Barrie residents may take include, commercial health insurance, and commercial auto insurance.