Bdo insurance brokers inc a case study

BDO Insurance Brokers Inc. is a wholly owned subsidiary of Banco de Oro Unibank. We are a team of industry professionals seasoned in the field of property, casualty insurance, healthcare, life assurance and employee benefits. Since insurance is a highly specialised and technical subject to what most people think. It is also very complex and even seasoned practitioners like us continue to encounter new issues that sometimes can catch us by surprise.

To better serve our clients, we are continuously mapping out our initiatives and projects for 2012 and the coming years especially the three units who were highlighted in this study- Marketing, Claims and Operations. Overall, employing additional manpower (2 for Marketing and 1 for Operations) is the most urgent resolution to address the issues. It would also be helpful to promote the senior staff /s to Officer/s instead of poaching external applicant/s to save administrative cost.

Designing an Incentive Programs for our referrers to motivate them including the employees and continue to assure our clients of the financial standing of our Accredited Insurance companies are recommended. About BDO Insurance Brokers Inc. – We Find ways BDO Insurance Brokers, Inc. was established in 1998 to serve the insurance requirements of the country’s number one bank BDO, and the country’s number one retail chain SM and its affiliates.

Through the years, BDO Insurance (BDOI) has grown in step with BDO Unibank, evolving into a total risk and insurance solutions provider and consultant for its clients. Today, it is one of the top three insurance brokers in the country managing an asset of value over 200 Billion. Being ranked 40th insurance broker in the country on its first year in 1998 to no. 4 in terms of Premiums (Php 2. 671B) and no. 1 in terms of commissions (Php 507. 4M) from the most recent Insurance Commission as of December 2011. Strategic Risk Management to Protect Your Balance Sheet

Our fulltime Risk Management professionals familiarize with your operations and protection needs, identify risks and recommend measures to eliminate or reduce these exposures – assuring your business objectives and protecting your financials and your brand. Our Reputation and Market Presence are Your Assurance We are backed by the strength and fuelled by the entrepreneurial spirit of our parent companies, BDO and SM Group, one of the largest and most respected groups of companies in the country today. ROLE AS A BROKER Guides clients in the identification of the risks •Analyses/evaluates risk exposures •Designs a program tailor-fit to the needs of the clients •Represents client during negotiations with Insurance Companies •Coordinates program design with the client and implement adequate and competitive coverages •Reviews contract and other insurance documents •Expedites processing and facilitation of claims settlement •Provides up-to-date information on the trends in the insurance industry, i. e new products and how these products can be procured MARKETING AND CLAIMS

Marketing team is the production arm of the company and their ultimate goal is to hit the monthly quota. Marketing activities are considered the entry point of our business. They need to proactively generate leads and ask referrals and customer profile from our bank counterparts, existing clients, and personal and professional network. They promote and offer different insurance lines depending on the needs and the requirements (if mortgaged to bank) of the property or borrower. They will request for quotations or proposals to our Accredited Insurers if it is not covered by our current packages.

Currently the Marketing team is manned by the Head and a marketing staff. A 30% increase in budget was imposed by the Management. According to Marketing Head – Amelia Monton, they were not able to hit the quota for the month of February due to some justifiable reasons like: •they were not able to materialize the accounts in their pipelines •some clients are still undecided to renew their accounts due to previous claim issues •branches and other bank units were not motivated to refer leads •Existing and new clients were having apprehensions in insuring their properties since he news of Financial crisis of another Insurance Company 1. )GENERATING MORE PRODUCTION Additional manpower (1 Account Officer & 1 Marketing staff) will be hired and expected to report by 1st week of April of this year. The new Account Officer is from another insurance company and has extensive background in underwriting. The newly appointed Unit Head – Elmo Bontuyan sees that she can help generate more accounts especially in HMO (Health Maintenance Organization) whilst the additional staff is from BDO branch.

These two will hopefully be able to serve all the queries and requests from other bank units (like Consumer Lending Group & Commercial banking – for mortgaged properties) and branches in which BDO has 20 branches in Davao Area alone in which they seek assistance for client calls, inspections and knowledge for BDOI products. PRODUCTS AND SERVICES Our services do not end with the following list of insurance solutions.

We complement these solutions with expert advice and guidance from our risk management professionals who will help identify specific business risks and how to mitigate them. We may be have wide array of services and insurance lines but there are also cases where some Accredited insurers are NOT willing to accept the risks (subject of the loan), so BDOI will assess, pre-underwrite and match the risk with prospective insurers who are willing and have available underwriting facilities that will properly and sufficiently insure the risk.

Being the insurance arm of the bank- BDOI periodically conducts a review and monitors the financial status and service performance of insurance companies. Accredited insurers are those who have complied with BDOI’s accreditation requirements and have passed the company’s standards on the following key areas: Financial Stability, Services Quality/Reinsurance Treaty Facilities, and BDO Relationship. Some of our Insurance Lines INURANCE SOLUTIONPROTECTS WHAT? AGAINST WHAT TYPE OF LOSS?

Fire InsuranceReal estate, machinery, and equipment, stocksPhysical loss, destruction, or damage due to fire and other catastrophes Motorcars, trucks, and vansLoss, damage and/or third party liability Business InterruptionRevenues and profitsInterruption caused by damage or destruction of property Comprehensive General LiablityBusiness operationsThird party liability which may be in the form of bodily injury, including death; and property damage due to accidents arising from business operations or negligence Bonds/Surety

Business operations Contractor or project failure through a guarantee that work is performed according to contract terms and conditions; including other types of bonds such as bid bond, guarantee bond judicial bond Personal AccidentYourself and your loved onesLosses due to fire, explosion, and acts of nature such as earthquake and typhoon Travel InsuranceYourself and your loved onesMedical or related expenses due to accident or illness while away on a trip, including expenses on trip delays and cancelations, and baggage loss

COST When it comes to insurance costs, we can help them through economies of scale, because simply we’re the largest Filipino-owned insurance broker in the country today. We leverage our size (including those of our parent companies BDO and the SM Group) to negotiate for each and every cover our clients need – and these enables us to provide them the best terms and most competitive rates. Brokers like us have existing portfolio of business that we could use as leverage when we place your business with insurers.

Since we use the same insurers for the rest of our business, insurance companies also ‘service’ us as valuable source of their revenue. This means that they can be pressured to improve the terms and conditions including premium levels, to our clients’ benefit. Almost always, we are able to outperform the rates of a direct insurer because we can approach several insurers. Imagine the Client’s sole insurer competing against 10,20 or 30 insurers that we could approach.

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