Going to the bank recently, why does the account manager love to sell you insurance?

　　Sino-Singapore Jingwei, September 12 (Wei Wei intern Guo Xizi) "Affected by the epidemic in the past two years, the deposit interest rate is not high. Now many customers allocate some funds for medium and long-term insurance. The insurance sold by banks in the past two years is higher than before. There have been a lot more in a few years." Lin Peng (pseudonym), an account manager of a joint-stock bank, told Sino-Singapore Jingwei.

　　This year, many people may have such an experience. After entering the bank, they want to buy a wealth management product with relatively high income and guaranteed capital. At this time, the bank account manager will recommend an insurance product to you.

Recently, Sino-Singapore Jingwei randomly interviewed state-owned bank branches in Beijing, Tianjin, Wuhan and other places and found that as long as "principal guarantee" products are mentioned, almost all account managers will actively market insurance products such as incremental whole life insurance, "3.5% compound interest increase" "Capital preservation" and "revenue written in the contract" have become the selling points of such products.

　　"We need to train the current financial manager, and gradually improve his insurance allocation ability. Now they like to do it or not, and only 30% of them will open an order a month. In my opinion, it should be opened in a week. One order." Xie Yonglin, general manager and co-CEO of Ping An Group and chairman of Ping An Bank, said bluntly at the recent 2022 results conference.

　　In the first half of this year, the bancassurance channel is becoming a common force for banks and insurance companies.

What kind of sparks are banks and insurance producing?

Will you buy insurance from the bank?

Banks do not sell wealth management and insurance

　　It is nothing new for banks to sell insurance. Now, insurance products that were not popular in the past are being re-examined.

Wu Xin (pseudonym), a senior account manager who has worked in a state-owned bank in a capital city for 17 years, feels that this year's insurance is much better than in previous years.

"In the first quarter of this year, single-payment (note: pay all premiums at one time) insurance sold six or seven million, and regular-payment (note: installment premiums) insurance sold nearly 2 million. Many big customers are 200,000, 500,000. Save, there are many orders for 100,000." Wu Xin said.

　　A few years ago, a client of Wu Xin purchased a single-pay universal insurance product with a five-year insurance period at a bank, with a yield of about 5%.

After the insurance expired this year, he took out the money and originally planned to buy time deposits and wealth management products, but now the wealth management does not guarantee the principal and interest, and the fixed deposit interest rate is also very low, so he switched to insurance products.

"After the new regulations on asset management, I generally don't recommend wealth management products to clients, for fear of hurting them. If the client wants to buy it, I will inform the client in advance that the principal will not be guaranteed." Mu Yichen (pseudonym) who works in a state-owned bank in Hebei Province ) told Sino-Singapore Jingwei, "At least the insurance guarantees the principal, and the income is written in the contract and will not hurt the customer."

　　Wu Xin told Sino-Singapore Jingwei that customers are now more accepting of bancassurance products.

On the one hand, the compliance pressure of banks selling insurance products is increasing, requiring "double recording", that is, audio and video recording.

"The bancassurance products more than ten years ago are not as compliant as they are now. In the past, customers came to the bank to deposit money and trusted the bank very much. It turned out that the insurance supervision was not as strict as it is now, and there were some deceptive behaviors. Guaranteed products are more disgusting." Wu Xin said.

　　In Wu Xin's view, on the other hand, the current financial management has broken the rigid payment. There are fewer and fewer customers depositing financial management than before, and more and more customers are transferring to regular deposits. Large-denomination certificates of deposit generally need to be snapped up, and customers can accept three Yearly regular, can also be properly equipped with some regular insurance.

　　"The interest rate of insurance products may not be high now, but considering that after 5 or 10 years, the current income may still be high; there are also some wealthy families who will buy insurance for asset inheritance considerations." Wu Xin express.

Insurance companies' bancassurance channels rose against the trend

　　Recently, the 2022 interim report of listed insurance companies has been disclosed. According to the data, in the first half of this year, the premium income of the individual insurance agent channel showed a downward trend, but the premium income of the bancassurance channel increased.

　　According to Xiao Jianyou, vice president of PICC, in the first half of this year, the total premiums of the top seven insurance companies’ bancassurance channels increased by 21.3% year-on-year, and the regular premiums increased by 7.6% year-on-year, which is in contrast to the individual insurance channels.

Under this new situation, the industry has begun to further promote the value transformation of the bancassurance channel.

　　According to the data from the interim report,

　　Xiao Jianyou analyzed that the bancassurance channel was generally valued by life insurance companies in the first half of this year for two reasons: First, the growth of life insurance personal agents was weak, and the number of personal agents in the top seven insurance companies decreased by 1.58 million; second, the current bancassurance market Demand is magnifying.

　　"From the perspective of the bancassurance market environment, residents' savings are constantly increasing and are at a high level. However, after the newly-exchanged wealth management products have faded out of the market, consumers' demand for funds and wealth management products has declined, and insurance products have become an important choice. Bank customers The group is also differentiated, and the needs of mid-to-high-end customers in insurance protection, quality pension, asset inheritance, etc. are increasing. Based on the above changes, the development opportunities of the bancassurance market are also emerging." Xiao Jianyou said.

　　While listed insurance companies are making efforts in bancassurance channels, banks are also advancing the reform of bancassurance business.

Xie Yonglin once listed a set of figures, which accounts for a high proportion of the bancassurance income of retail banks in Europe and other retail banks, and about 50% of the intermediate business income of wealth management.

　　In China, China Merchants Bank, the "King of Retail", is one of the banks that attaches the most importance to insurance agency business.

In 2021, the bank's wealth management fee and commission income will be 35.841 billion yuan, a year-on-year increase of 29%, and agency insurance commission income will be 8.215 billion yuan, accounting for 22.92% of wealth management fees.

In the first half of 2022, the agency insurance revenue of China Merchants Bank has reached 8.790 billion yuan, exceeding the full year of 2021, and the proportion of retail wealth management fees and commissions has reached 48.31%.

　　Since 2021, Ping An Bank has launched the new bancassurance business reform and built a new wealth team that understands insurance; by the end of June 2022, the new team has accumulated more than 800 employees.

　　Data show that as of the first half of 2022, Ping An Bank’s agency insurance income was 1.065 billion yuan, a year-on-year increase of 26.3%.

Ping An Bank disclosed in its semi-annual report that in the first half of the year, the bank's agency and commission fee income was 4.229 billion yuan. Based on this calculation, agency insurance income accounted for 25.18% of it.

For comparison, for the whole year of 2021, the bank's agency insurance income was 1.516 billion yuan, accounting for only 17.68% of agency and commission fee income.

Incremental whole life insurance is favored

　　During the visit, Sino-Singapore Jingwei found that the bank account managers mainly recommended insurance with strong savings properties such as increased whole life insurance, annuity insurance and participating endowment insurance, especially increased whole life insurance.

　　According to the "2021 Bank Agency Channel Business Development Report" released by the Insurance Association of China, in

Whole life insurance occupies seven of the top ten annual sales of regular products.

Participating insurance and universal insurance are still the main products in the top ten products of single-payment product sales.

　　"From the perspective of business types, the value-based regular premiums of bancassurance have maintained rapid growth," Xiao Jianyou said.

.

　　What is increased whole life insurance?

In an interview with Sino-Singapore Jingwei, it was found that when the bank account manager recommended it, they would often tell the customer that it would not be cost-effective to take the product within five years. The value is written in the contract. Now the bank's three-year large-denomination certificate of deposit has a maximum interest rate of 3.25%.

　　Taking ICBC-AXA Life's "Xin Ruyi Jiuhao Whole Life Insurance" as an example, the promotional materials take Mr. Jin, 40, as an example to insure the full moon's daughter. The annual premium is 100,000 yuan and the payment period is 5 years.

The cash value in the first 5 years is relatively low. For example, the cash value in the first year is only 9,148 yuan, the cash value in the second year is only 23,791 yuan, the cash value in the fourth year is 76,242 yuan, and the cash value in the fifth year (note the end of the policy year) is only reached 505,900 yuan.

In the 10th year, the cash value is 600,800 yuan, and in the 20th year, the cash value is 847,500 yuan.

　　It is not difficult to see that if a customer withdraws cash within the five-year insurance period, the loss of the principal is higher, and compared with the deposit, the income calculation method of insurance products is different, and some customers will think that they have been deceived after applying for insurance.

　　Assuming that the annual interest rate is 3.5%, the deposit is 500,000 yuan. If it is deposited for 5 years, the principal plus interest will be 587,500 yuan at maturity, which is much higher than the cash value of insurance products; if it is deposited for 10 years, the total principal and interest will be 675,000 yuan; In 20 years, the total principal and interest amounted to 850,000 yuan, which was still slightly higher than the above-mentioned insurance products.

This is also one of the issues that many banks have been involved in in the past when selling insurance products.

It should be noted that in the above insurance case, 500,000 is not paid at one time. If the deposit is also deposited according to the above time line, the income will be lower than the above estimated amount.

　　But over time, the advantages of insurance products become more apparent.

If it is deposited for 30 years, the principal and interest of deposit products will total 1.025 million yuan, while insurance products can reach 1.1955 million yuan, and it is uncertain whether there will be 3.5% of deposit products in the future, and insurance products can lock in income.

　　According to Yang Zeyun, a teacher at the Department of Finance, School of Management, Beijing Union University, strictly speaking, first of all life insurance, that is, only when the insured dies (or is totally disabled), the beneficiary can receive insurance benefits (Note: In the case of total disability, generally by The insured himself receives the insurance benefits).

The difference between increased whole life insurance and traditional fixed whole life insurance is that its death insurance amount increases year by year, so it is called increased whole life insurance.

Since it is whole life insurance, it is mainly received by the beneficiary after death, so its main motive for insurance is for wealth inheritance.

　　Yang Zeyun pointed out that in

and many additional whole life insurance can be added. , thus, the result is further "deposited".

In recent years, in an economic environment where interest rates continue to decline, incremental whole life insurance can lock in long-term and stable income, and is favored by many customers.

　　Yang Zeyun emphasized that when buying insurance from banks, it is necessary to clarify whether the purchased bancassurance can meet your needs.

Take incremental whole life insurance as an example, many people buy incremental whole life insurance based on its higher interest than bank deposits.

　　"The so-called flexible withdrawal of the increased whole life insurance in the future is actually the surrender of the cash value, which can be withdrawn according to individual circumstances, but it should be noted that only some insurance companies have no limit on the old products, and now the new products basically have a 20% limit ” An insurance broker told Sino-Singapore Jingwei that most companies stipulate that insurance can only be reduced once a year, and the amount does not exceed 20% of the basic insurance amount agreed in the contract.

　　The insurance broker argues that limits actually have pros and cons.

"Some people want to leave this money to their children, but if there is no limit, the child may take the money all at once, and the limit can be maintained for a long time. Some customers want to buy this kind of product with a limit."

Banks are under pressure to sell insurance compliance

　　As banks attach great importance to bancassurance business, the bank's account managers are not under pressure on insurance sales. After all, the importance of this middle income to the bank is self-evident.

　　"During the peak marketing season in the first quarter, there will be performance indicators. For example, the branch needs to sell 500,000 or 600,000 regular payments in the first quarter. If the performance is not completed, the bank may have many measures, such as not being able to rest on weekends, and coming for training. , that is, to exert pressure in disguised form, and may also be named and criticized at the meeting, which will put a lot of pressure on the account manager. Sometimes, a surprise camp will be held, such as selling 500,000 insurance within half a month. The outlets will go to PK, and you will be praised if you complete them.

　　"Out of 10 customers, maybe only 1 can accept it. Some customers think that the product is too complicated and it takes a long time to listen to the introduction." Wu Xin told Sino-Singapore Jingwei.

　　In addition to the pressure on sales performance, Wu Xin bluntly said that the compliance pressure on insurance sales in the past two years has also increased.

"Now selling insurance is more and more compliant, and customers cannot be deceived. Compliance needs to be explained to customers clearly, and maybe customers will not buy it, because buying insurance requires double recording. Although it is to protect consumers and protect our sales staff, but Many possible risks and all terms will be told to customers, and a robot will tell them during the double recording, and customers can buy if they agree, and some customers will not buy when they hear the risks.”

　　Sino-Singapore Jingwei learned that usually, a bank branch can only cooperate with three insurance companies.

"At the beginning of the year, we will let us choose by ourselves. There are N options for the second-tier bank for you to choose. The insurance company of your own line is a must." Wu Xin revealed.

　　The above-mentioned insurance brokers told Sino-Singapore Jingwei that there may only be one or two insurance products mainly promoted by each bank, and insurance brokerage companies basically have insurance products on the market, so some customers will learn about the products from the bank. Then find a professional insurance broker to help you compare and choose the most cost-effective one.

　　When talking about the advantages of banks selling insurance, Yang Zeyun said, first of all, banks have far more outlets than insurance companies. Insurance companies use bank outlets to sell insurance products, which can not only reduce sales costs and expenses, but also accurately locate customers.

Secondly, the banking workplace can accurately locate deposit customers and carry out targeted insurance product marketing for them.

Third, Chinese residents have a natural sense of trust in banks, and it is easier for bank employees (or those in the banking workplace) to sell insurance products to bank customers.

　　In addition to the advantages, there are also some disadvantages.

Yang Zeyun said.

　　In addition, insurance companies are currently under certain pressure on the investment side. Regarding the interest margin space for long-term savings business, Gong Xingfeng, vice president and chief actuary of New China Insurance, mentioned at the performance conference that the risk of interest spread loss is one of the most prominent factors. .

He believes that, first of all, it is necessary to establish a good risk management on the product design side, provide a reasonable pricing level for long-term protection, and avoid extreme pricing.

　　Regarding bancassurance cooperation, Yang Zeyun said that in reality, for insurance companies, bancassurance has rapidly increased the premium scale, but bancassurance business also faces problems such as high costs and low business value.

Especially for some small and medium insurance companies, if there is no bancassurance business, there may be basically no business.

However, in order to win cooperation with banks, higher fees must be paid to banks, which ultimately makes it difficult for insurance companies to make profits.

　　"Based on the sustainability of insurance companies, regulators have restricted the sales of short- and medium-term wealth management bancassurance products, and require insurance companies to sell bancassurance products based on long-term pension annuities, ordinary life insurance, etc. The

” Yang Zeyun said.

(Sino-Singapore Jingwei APP)