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Turning around a struggling hospital cash product

Emerging Insight #:


Date of Release:

  March 8, 2016


  Other channels, Claims, Sales, Improving value, Health


  FINO PayTech

How FINO PayTech improved agents’ motivation and interaction with clients

Since 2010, FINO PayTech has used the extensive network of FINO Fintech Foundation (FFF), through which it provides business correspondent services, to distribute insurance to around a million customers. In 2012 it decided to add a hospital cash product to its offering. However, despite training a large number of its agents (known as Bandhus) to sell the product, sales were very low, with only 1,200 policies sold in the first 15 months.

FFF made several process and technology changes to address problems ranging from connectivity to premium collection. However, it also felt that improving the motivation of Bandhus to sell insurance, as well as their relationship with clients, would be key to improving take-up. It tackled this in four ways:

  1. Firstly, it created a team of Bandhus focused primarily on selling the hospital cash product. Previously, all Bandhus tried to sell insurance when they performed other activities, such as opening savings accounts. Selling insurance was not their primary task. For the new team, the primarily responsibility is to sell the insurance product and their targets are set based on this.
  2. Another important change to increase motivation was to switch to upfront incentives. Previously, the full payment for the product was transferred to the insurer, who gave FFF a commission. Then, based on sales data, part of the commission was paid to the Bandhus by FFF. Now Bandhus receive their commission immediately at the point of sale. This has proved to be a much more powerful incentive.
  3. These changes were reinforced by improved training. FINO now trains staff using a new training programme that focuses on the impact of insurance in everyday life.
  4. Finally, FFF increased the support that Bandhus provide to clients during claims. It allowed Bandhus to contact the call centre to file claims on behalf of clients. Furthermore, the claims team accepted Bandhus’ confirmation of a hospital visit where full documentation could not be provided. This improved the relationship between Bandhus and clients, as clients saw that Bandhus could support them in receiving the benefits of the product.

The changes FFF made as a result of its initial experiences, including those outlined above, allowed it to sell around 75,000 policies in the 10 months up to January 2016.

Find out more about FINO PayTech’s project to distribute hospital cash through its business correspondent network here.