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The “multiplier” effect: distributing insurance through banking correspondents

Emerging Insight #:


Date of Release:

  May 20, 2013


  Other channels, Retailers, Mobile network operators


  Bradesco Seguros, Brazil and FINO, India

In Brazil and India many banks have developed extensive networks of “banking correspondents”, non-bank outlets such as small shops or hairdressers that provide financial services and products on behalf of the bank. Two of our partners are learning how to utilize these outlets to sell microinsurance.

FINO, a technology service provider in India, trains and supports banking correspondents to deliver banking and insurance services.FINO works with both individuals and retail shops. It has recently started offering insurance through merchants who provide money transfer and remittance services. These merchants are known and trust in the communities and FINO is able to leverage this trust to sell insurance. Merchants recommend insurance products, collect premium and use their own mobile wallet accounts to transfer payments to the insurer. An advantage with this type of banking correspondent is that these merchants can utilize the pre-paid limits established with FINO reducing the need for cash transaction and they provide access to a large pool of clients since the footfall in these outlets is increasing.

Similarly, Bradesco Seguros, the insurance arm of the Bradesco group, provides personal accident, funeral, and household insurance to low-income communities through banking correspondents maintained by the Bradesco Bank. Bradesco Seguros realized, based on the experience of the bank, that it needed to assign representatives to provide ongoing support to the banking correspondents. Providing only initial training was not sufficient. As a result, Bradesco Seguors uses individuals (called “multipliers”) that train, support and troubleshoot with the banking correspondents on an ongoing basis. They also represent the insurer in the communities, helping build trust in the product. Starting with 108 correspondents in northern regions, Bradesco Seguros has since expanded to provide insurance through 245 correspondents out of 40,000 correspondents that are part of the Bradesco bank’s network. To learn more about distribution, click here to access the recording of the Webinar on New Opportunities in Microinsurance Distribution.