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RCBC BANCASSURANCE CONTINUES DOUBLE-DIGIT GROWTH

As a growing number of its branches get involved in cross-selling various insurance products, Rizal Commercial Banking Corporation (RCBC) continues to experience double-digit growth rate for its Bancassurance business.

The bank posted P1.15B in new premiums as of third quarter of 2010, 35 percent more than in the same period last year, and expects to pull in P200 million in the last quarter to earn a total of P1.35 B for the whole year.

"We are able to generate a higher premium production than other top bancassurance players on a per branch basis," said Ismael R. Sandig, EVP and Head, RCBC Retail Banking Group. “This means that we are able to sell more with a fewer number of branches."

Beginning with P400 million premiums in 2007, RCBC's bancassurance took off as the bank became very aggressive in cross-selling insurance products. Premium income jumped by 87 percent in 2008 and broke the P1 billion mark in 2009.

"For next year, we aim to offer more improvements in terms of product offerings, sales process, training and customer service, with the goal of generating at least 25% growth," said Sandig.

His confidence rests on the top management's full support and recognition of bancassurance as an avenue that gives more business for the bank and expands network for the insurance sector.

"We closely coordinate with our bancassurance partners in terms of sales skills training and product orientation. Consequently our bancassurance partners are able to offer attractive incentive programs for our branches and products that address the protection and investment needs of our clients," said Sandig.

Under this scheme, RCBC is able to offer whole life insurance and endowment products, as well as motor car and fire insurance under Malayan Insurance. For lower-income segments, it offers more affordable term life and personal accident insurance.

Sandig also said that there are plans to offer micro-insurance products to clients of RCBC's thrift banks, JP Laurel and Merchants Bank.