In a significant leap towards aligning insurance and bancassurance distribution in Pakistan with global best practices, Instaful Solutions has joined forces with Shoreline Asia, a leading international financial services consulting firm headquartered in Hong Kong.
Bancassurance, and its Shariah-compliant variant BancaTakaful, represent a business model where insurance companies collaborate with banks for the distribution of investment and protection products to bank customers. This model has been in practice in Pakistan for nearly two decades and has emerged as a key avenue for delivering insurance to predominantly first-time buyers in a country with a remarkably low insurance penetration rate.
However, the conventional model has faced challenges over time, characterized by focus on a small niche of a bank’s top clients, similar product offerings and a sales approach heavily reliant on commissions and incentives. This approach has led to stagnant or negative growth in new sales, elevated cancellations, a high lapse rate where customers abandon policies after the first premium payment and frequent complaints of foul selling.
Recognizing the need for innovation and a global perspective, Instaful, on a mission of market-creation through innovation, has entered into a strategic alliance with Shoreline Asia. The goal is to address these challenges head-on and assist Pakistani insurance companies and banks to grow quality sales and satisfied customers.
Rehan Butt, Founder & CEO of Instaful Solutions, expressed enthusiasm at the agreement signing ceremony, stating, “We are excited to continue our journey of meaningful work for the growth and sustainability of the Pakistani insurance market, making it attractive not only for local buyers of insurance but also for potential international organizations willing to invest in Pakistan. This partnership with Shoreline Asia is a significant step in that direction and I thank my colleagues at Shoreline Asia for recognizing the potential in Pakistan and joining us on this transformative journey”.
Douglas Sumner, Chairperson of Shoreline Asia, added: “We are delighted to be able to partner with Instaful Solutions to further develop and grow insurance penetration in Pakistan through the application of best practice in the sale and service of insurance and wealth management products through the Bancassurance channel in Pakistan. We firmly believe in a customer first approach when it comes to the sale of financial services products and are looking forward to bringing our global experience to Pakistan together with Instaful Solutions”.
About Instaful
Instaful Solutions, an InsurTech from Pakistan, is on a mission to debunk the belief that “insurance is always sold, never bought” by simplifying both its delivery and purchase. Founded by Rehan Butt, a trailblazer in micro, digital and inclusive insurance, the company collaborates with insurance providers and consumer brands including telecom operators, FinTechs, sharing economy apps, digital platforms and development agencies, to make insurance easy, affordable, accessible and available. For more information, contact: contact@instaful-solutions.com
About Shoreline Asia
Founded in 2009, Shoreline Asia is an international financial services consulting firm headquartered in Hong Kong and comprises a highly experienced and operational team, specialising in the insurance, banking and financial services industry.
Shoreline Asia’s Bancassurance Principal Leads enjoy a global reputation in the sector and have over 80 years of combined experience in this specialist area with particular expertise in partner identification, deal structuring, and negotiation, distribution valuation, proposition development, campaign management, reward and remuneration, sales management & training, process re-design and product design and development. For more information contact: doug@shoreline-asia.com