RC Bratislava Danube - setkání (3. 11. 2014, 18:30 - 20:00)

Přednáška

REGINA OVESNY STRAKA: Banking Vs Insurance Majority of Reginas working experience are in banking. Our new member, Regina, described that banking is a service and allowing to fulfil our dreams. Insurance is based on fear. Insurance product is about giving the client security of coverage before any risks coming to everyone of us. The most difficult is to sell it. Banks have mostly own employees and a part (20%) of the products are sold via broker. In insurance companies are products also sold through own employees, but majority 70% through brokers. Employees in banks are paid fix in 80% while variable part of the salary represents 20%. In insurance companies employees are paid by commissions (variable) part in amount of 95% of their salary and only 5% is fixed part. In the beginning, insurance employees earn much less compared to banking employees. The main reason is the process and time until the seller creates client basis. BANKS sell through branches and upcoming e-commerce tendency to make activities outside Customer relationship management mostly well developed currently short term to midterm oriented Insurance focused on face2face meetings outside of office - important to value the clients assets (many time clients don’t know what they really have or its assets value) 60% of all sales are closed outside of the office. Products are also sold electronically to reach young clients customer relationship mngmnt: client segmentation not common in insurance business. Currently the importance of CRM is low, but the increasing value of the databases will create demand and higher importance of the crm. Insurance is long-term oriented - if closing life insurance product, the agreement is closing for 60years, which pushes the importance and investments of the insurance company to create the ability to pay out e.g. life insurance in 60 years. Crises in 2009 BANKS buying bonds and shares, speculative and unable to pay at due date and bad loans (bad debt). Short term view caused shortage in liquidity and inability to pay out dues. Insurance reasons was long term view and conservative investments. Causes were not that severe as in banking industry. REGULATIONS - capital and equity BANKING BASEL III. Implementation of the regulation is undergoing and will be finalized in 2016. Focus is on guidelines and reports (tests) to evaluate banks approaches. Regulations have approximately 10ths regulations. Banks are supervised by EU (not by national bank of Slovakia). Also a question is whether EU has sufficient experts for controlling all EU countries INSURANCE SOLVENCY II - guideline under implementation will be finalized in 2016. Pillars in insurance: all reports to Slovak national Bank. Problem of guidelines: all regulators are concerned, that the bank industry will repeate the crisis from 2009 again. Currently the situation is represented by overregulation, which affects even the business, a lot of cost - employ people for such calculation regulating guidelines, forecasting and the client has no value added from the regulation. Business models in banking and insurance become more difficult. CHALLANGES: - low interest rates, estimation for the upcoming 3years the interest rates will not change. After the 3 - for insurance companies low interest rates invest in secure bonds (german bonds are very low), part of the money can be invested - client gets less revenue and insurance companies also earn less. - banks have difficulties with several products due to low interest rates - consumer protection: in Slovakia is far more intensive then in Austria. New security laws are coming in not only within Slovakia but also from EU. - e-commerce in banking are relaunching the branch network. A lot of banks start to refocus from branches (closing) to internet banking. - economic environment ANSWER TO CHALLANGES cost management and efficiency: look on solutions to become more efficient. Back offices may be reman aged, marketing budgets need to be remade. Business model will need to undergo severe changes due to economic environment, client expectations and needs (internet service), regulations.Also important is to create information channels within industries as well as between.