Bancassurance

Bancassurance is a business model that is among the financial services offered by banks to their customers and includes the sale of insurance products. This business model is an effective method used to increase the profitability of banks. There are many insurance products that banks can offer to their customers. These products include various types such as health insurance, travel insurance, car insurance and home insurance. These products are one of the many advantages that banks provide to their customers.

The Joint Customer Method (OMY) is a method of marketing each other's products and services to their customers by sharing common customers between banks and insurance companies. Thanks to OMY, banks can offer insurance products to their customers, while insurance companies can offer banking products to their customers.

The important topics to be considered in bancassurance are as follows;

1. Revenue sharing: One of the important issues between banks and insurance companies is revenue sharing. Sharing the revenue from product sales is a very important factor.

2. Communication and coordination: For the Common Customer Method (OMY) to be successful, communication and coordination between banks and insurance companies must be ensured at the maximum level.

3. Customer relations: OMY can more comprehensively meet customers' needs and offer a variety of products and services.

4. Collaboration and different perspectives: The performance and success of banks and insurance companies in managing customers together are extremely important in terms of business performance and output. The joint management of the issues that will arise is very effective.

5. Key points: at OMY Compliance with regulations and legal regulations, adoption of ethical working principles, performance on customer rights and confidentiality are important for business performance.

The market size of Bancassurance is also very important. Globally, the Bancassurance market reached $1.2 trillion in 2019 and is projected to grow to $ 1.7 trillion by 2025, with a growth rate of 7.8%. This growth will allow banks to invest more in the insurance business and reach more customers. It is also of great importance that banks have sufficient expertise in doing insurance business. For this reason, banks are required to follow the latest developments in the field of insurance and make the necessary investments to offer their customers the best insurance products.

Banks also work with many insurance companies in the field of insurance. Banks may not always work with the same insurance company. The insurance companies that some banks work with are as follows;

When the situation of Bancassurance in Turkey is analyzed, it is seen that there has been a significant growth trend in recent years. Insurance premium production of banks in Turkey reached approximately 7.5 billion TL in 2021. This figure shows that the share of banks in Turkey's general insurance premium production is gradually increasing. In addition, with the banks investing more in the insurance business, it is seen that insurance products are preferred more frequently by customers.

The share of banks in the insurance sector has been increasing in recent years. The reason for this is that banks provide advantageous prices and convenience to their customers in the sale of insurance products. In addition, banks have the advantage of offering personalized insurance products according to their customer portfolios.

The banking and insurance sectors have been going through a rapid digital transformation process in recent years. This process allows sectors to carry out their activities faster, more efficiently and more safely. Digital transformation also has significant effects on retail and SME customers of the banking and insurance sectors.

As a result, Bancassurance has attracted a great deal of attention around the world in recent years, as banks offer a more comprehensive service to their customers and at the same time increase their profitability. Insurance premium production of banks in Turkey is also increasing. However, the success of Bancassurance can only be achieved if the banks correctly understand their customers' insurance needs and accordingly offer appropriate insurance products, provide customers with adequate training and invest adequately in the insurance business. However, banks need to focus on customer satisfaction and sell insurance products with an ethical approach.