Strategic Bancassurance Partnership Selection
Background and Requirements
Our client, a leading bank, sought to establish a transformative bancassurance partnership with a reputable Life Insurance company. With the objective of creating a long-term exclusive distribution arrangement, the bank initiated a competitive bidding process through an initial Request for Proposal (RFP) to select the most suitable insurance partner. Acknowledging the significance of unbiased assessment, the bank turned to MAGI for expert guidance in evaluating the proposals and navigating the complex decision-making journey.
The key challenges here were to create and manage a transparent process for evaluation of multiple proposals and a range of financial models, combined with an assessment of the partner experience and capabilities to support the long-term partnership with the Bank
Diverse Proposals: Assessing the varying proposals from multiple insurance companies with unique strengths and strategies.
Complex Metrics: Evaluating the complex financial models and terms, execution capabilities, business plans, risks, and experiences to ensure a holistic assessment.
Strategic Alignment: Aligning the partnership objectives with the bank’s strategic goals and customer-centric vision.
Data Management: Ensuring timely and accurate availability of data from both the client and potential partners.
Negotiation Dynamics: Navigating the negotiation process to achieve favorable terms for both parties.
Our engagement followed a meticulous approach, divided into distinct parts to comprehensively address each aspect of the project:
Preparation for RFP: Aligning strategic imperatives, internal guidelines, and initiating discussions with potential partners.
Issuing RFP: Drafting a comprehensive RFP, preparing initial data sets, and presenting the opportunity to insurers.
Business Planning: Collaborative discussions with shortlisted insurers, joint business plan formulation, and capability reviews.
Proposal Review: In-depth assessment of binding proposals, clarifications, risk evaluations, and strategic alignments.
Actuarial Comparison: Utilising actuarial expertise to compare proposed business plans, financial models and assess value generation.
Deal Negotiation Support: Providing insights into agreement terms, assisting negotiations, and ensuring strategic alignment.
Through our diligent process, we enabled the bank to make informed decisions:
Shortlisted top insurers through rigorous proposal evaluation.
Formulated an aligned business plan with the selected insurers.
Conducted comprehensive assessment, aligned with industry standards and strategic priorities.
Provided actionable insights into value generation through actuarial assessment.
Facilitated informed negotiations with selected insurance partners.
Key Deliverables:
Strategic Alignment: Ensure the chosen partner aligns with the bank’s strategic vision.
Comprehensive Proposal Assessment: Evaluate financials, execution capabilities, and business plans.
Informed Decision-Making: Facilitate the selection of the most suitable bancassurance partner.
Value Generation Assessment: Utilise actuarial expertise to compare and assess proposed plans.
Effective Negotiation: Assist in negotiations for terms that align with the bank’s commercial objectives.
