2016 Performance
INSURANCE
In 2016, we concentrated on our main strategies:
increasing crossing insurance products with those offered by banks and improving cost efficiency, resulting in a better return on invested capital.
We are improving product offerings to have higher quality sales that reach customers when they need them. To do this, we have better focused our offer for each channel and each customer segment. In retail banking, we focused the number of products with the most deposits from 6 to 4, so that executives can more efficiently direct their efforts to the insurance they sell.
Our contact centers have a are better equipped to conduct client surveys to detect which type of insurance the client needs, according to transactions carried out. Thus, insurance against credit or debit card fraud are promoted at the time the customer calls to activate his/her card.
We designed specific preferential banking products and increased relationship with car loan and mortgage executives. Cross sales for Banorte car loan customers who also bought Banorte insurance was at 76% - we have now reached 86%.
As well as ensuring the outstanding amount of the mortgage, we are promoting individual insurance with customers, to protect their patrimony.
Cross sales for Banorte car loan customers who also bought Banorte insurance was at 76% - we have now reached 86%.
We have expanded our insurance offerings to ATMs. In 2016 we offered 3 different products in this channel and increased it to 5 in 1Q17.
Sales of differentiated insurance according to segment and channel, as well as a better alignment between the goals and incentives for executives, have allowed us to increase the term of the relationship with our customers. The sale of insurance in branches increased 14% but the premiums charged for them increased by 23%, which is a sign that we are enjoying a longer term relationship with customers.
2017 prospects
We have been preparing to face instability in the exchange rate, which can affect the profitability of the insurance company, as well as to protect us against systemic risks, such as a possible increases in insecurity and therefore in accidents, and to offset the increased competition in the sector.
We will continue our strategy of selling more insurance on average per customer and focus our product offering according to the channel and segment of users. We are working so that products can be more flexible and adapt to the customer’s needs.
This year we will continue to align the objectives of business banking executives, especially for SMEs, with the insurance representatives.
Jose Francisco Landaverde Flores
General Director
Banorte Insurance
“Differentiated insurance sales according to segment and channel have enabled us to increase the length of our relationship with customers.”
Jose Francisco Landaverde Flores
General Director
Banorte Insurance