Bancassurance partnership agreement - Magi Consulting

Crafting a Successful Bancassurance Agreement

Background and Requirements

Magi’s client is a leading Bank in South Asia. The Bank sought a long-term Bancassurance partner, prompting them to invite expressions of interest from leading Life Insurance Companies. MAGI was engaged to facilitate the partner selection process, which included RFP design and management, business modeling, partner assessment, due diligence, and deal valuation. The project aimed to select a partner aligned with the bank’s strategic objectives and capable of delivering on key requirements, and enter into a definitive long-term exclusive Bancassurance agreement.

Bancassurance partnership agreement

Navigating the path towards selecting the ideal Bancassurance partner presented a series of challenges that demanded a strategic approach and astute problem-solving. The project encountered the following hurdles:

  1. Identifying the Right Fit: The foremost challenge lay in identifying the Bancassurance partner whose strategic vision and operational capabilities harmonised seamlessly with the Bank’s objectives. This necessitated a rigorous selection process to discern the partner best suited for a mutually beneficial alliance.
  2. Strategic Alignment: Ensuring that the chosen partner aligned perfectly with the bank’s strategic imperatives required in-depth discussions and assessments to guarantee that the partnership would enhance the bank’s offerings and customer experience.
  3. Data Coordination Complexity: Coordinating the exchange of data and requirements between Commercial Bank and the participating insurers added a layer of complexity. Managing the flow of information, clarifications, and documentation required meticulous attention to detail.
  4. Efficient RFP Process Management: Executing an efficient Request for Proposal (RFP) process, marked by transparency and fairness, was a priority. Overcoming potential bottlenecks and ensuring a smooth and transparent RFP process was essential to attract the right partners.
  5. Negotiating Strategic Alliances: The negotiation phase with selected partners represented a significant challenge. Balancing the commercial and legal aspects of the agreements, while considering industry standards and best practices, demanded industry-specific insights and expertise.

Navigating these challenges required a collaborative and strategic approach, which Magi provided, facilitating a successful partnership selection process.


In order to identify the optimal Bancassurance partner and execute a seamless partnership, Magi Consulting implemented a comprehensive set of solutions that encompassed various phases of the project. These solutions aimed to address the challenges effectively, align the objectives, and ultimately result in a successful partnership selection process.

RFP and Assessment Processes: Magi Consulting designed and implemented a meticulous Request for Proposal (RFP) and assessment journey, ensuring the right insurers were shortlisted and equipped with the essential information to submit binding proposals. This process encompassed:

Preparation for RFP:

  • Collaboratively preparing the groundwork for the RFP, understanding the strategic imperatives of the Bancassurance deal, assessing the bank’s current experience, and aligning insurer requirements, with the assessment process.
  • Finalising the Information Memorandum.

Output & Deliverables : This phase yielded a high-level understanding of objectives, a well-structured RFP process, and ongoing preparation work for the RFP.

Binding Proposal and Business Planning: Magi facilitated detailed discussions, data provisions, and business planning with shortlisted insurers. This encompassed:

  • Supporting the Bank in data-related discussions.
  • Coordinating data requests and queries.
  • Developing a joint business plan with shortlisted insurers.
  • Facilitating operational reviews and sales model discussions.
  • Assessing insurer capabilities.
  • Reviewing, advising, and supporting discussions on draft Bancassurance Agreements received during the RFP process.

Assessment and Actuarial Review: Upon receiving proposals from RFP participants, a comprehensive assessment and actuarial review was conducted.

  • Review and Clarifications: Supporting the Bank in discussions with insurers, reviewing and advising on proposal clarifications, and ensuring alignment with business objectives.
  • Actuarial Comparison : Providing actuarial comparisons of proposed plans, valuation and assess the financial benefits to the bank and overall value generated.

Deal Negotiation Support: The final phase centred on deal negotiation support, working closely with the Bank’s management and legal team to ensure the agreement met commercial expectations and aligned with industry standards. This phase comprised:

  • Offering insights and inputs to the legal team.
  • Assisting with negotiations with selected insurance partner commercial and legal teams.
  • Providing guidance and support from a commercial and industry perspective.

Magi Consulting’s holistic approach and solutions facilitated a smooth and strategic partnership selection process, enabling the Bank to embark on a successful Bancassurance journey.

Outcome and Results:

The diligent implementation of Magi Consulting’s comprehensive solutions yielded a range of favorable outcomes and results:

Identification of a Bancassurance Partner: Magi Consulting successfully facilitated the identification of a Bancassurance partner that closely aligned with the Bank’s strategic objectives, setting the foundation for a fruitful partnership.

Efficient RFP Process Management: The management of the RFP process was carried out with precision and efficiency, ensuring that the right insurers were engaged and equipped with the necessary information to participate effectively.

Detailed Assessment Reports and Recommendations: Magi Consulting provided detailed assessment reports and well-founded recommendations, enabling the Bank to make informed decisions based on a comprehensive understanding of each proposal.

Actuarial Comparisons: The project included high-level actuarial comparisons of proposed plans, providing valuable insights into the financial implications and share of value generated by each business plan.

Support During Deal Negotiation: Magi Consulting continued to offer valuable support during the deal negotiation process, assisting Commercial Bank in navigating the complexities of finalizing agreements.

Key Deliverables:

  • A meticulously crafted project plan that extended up to the RFP assessment and deal negotiation stages.
  • Agreed-upon business plans with insurers, providing a clear roadmap for collaboration.
  • Comprehensive capability reviews of insurers, enabling Commercial Bank to make informed partner selections.
  • Actuarial modeling of business plans and financial offers, offering quantitative insights into the value generated by each proposal.
  • Essential commercial input for the drafting of legal agreements, ensuring that contractual terms aligned with industry standards and expectations.
  • Continuous assistance throughout the negotiation process, reinforcing the Bank’s position and facilitating mutually beneficial agreements.

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