Irish unit linked life insurance for use as a tool to protect assets from German income taxation

Table of Contents

1. Executive summary

2. Aims and objectives

3. Background information

Far environment (STEEP analysis)

Competition

Industry competition

Threat of potential entrants

Threat of sthe bank grouptitutes

Bargaining power of buyers

Bargaining power of suppliers

Service quality

4. Research/methodology

Literature review

Market potential

German market for unit-linked policies

Client base

Customer segmentation and customer needs

Tax efficiency

Inheritances

Transparency

‘Swissness’ and Open Architecture

Product literature and training material

Processes

Process model overview

Issues capturing the data

Unclear process definitions

Helpline

Data collection

Regulatory and taxation restrictions

Data analysis

Product content

Attractiveness of investment content

Fee structure

Pre- and after-sales processes

Summary of results

5. Conclusion/recommended next steps

Key stakeholder groups/nature of performance

Recommendations: Marketing

Customer segmentation

Segment 1: Core affluent with volume < 5m Euro

Segment 2: HNWI with volume > 5m Euro < 20m Euro

Segment 3: UHNWI with volume > 20m Euro < 100m Euro

Segment 4: Ultra High Net Worth with volume >100m Euro

Differentiating capabilities

New sales arguments

PM High Yield

Creative swiping of order-winning criteria

New fee structure

Trust and loyalty

Communication

Recommendations: Operations

‘Flexible Specialisation’/special cases process

Kaizen

Increase knowledge of help-line

Close the communication gap

Automated pooling of sub-policies

Market risks during cooling off period

New access rights for Front Support

6. Key learning points/critical reflection

Project Goals and Topics

The primary goal of this report is to analyze and optimize the marketing and operational processes for "THE BANK GROUP Life Portfolio Plan (Germany)." The project aims to identify strategic improvements to increase the competitiveness of this tax-efficient investment vehicle while ensuring stakeholder requirements are met.

• Strategic optimization of the "Life Portfolio Plan" for the German market.
• Enhancement of marketing strategies through customer segmentation and new sales arguments.
• Operational process improvements, including the "Flexible Specialisation" approach for ultra-high-net-worth individuals.
• Alignment of investment content with current tax regulations and customer needs.
• Establishing trust and loyalty through "Product Champions" and effective communication.

Excerpt from the Book

Summary of Chapters

1. Executive summary: Provides an overview of the "bankassurance" concept and outlines the strategic goal of creating a win-win situation between the insurance company and the bank.

2. Aims and objectives: Defines the core objective of challenging current operational and marketing assumptions to add value to the existing product offering.

3. Background information: Analyzes the environment using the STEEP model and evaluates competitive forces using Porter's five forces model.

4. Research/methodology: Documents the literature review, market potential assessment, process analysis, and data collection methods employed throughout the project.

5. Conclusion/recommended next steps: Presents specific actionable recommendations for marketing, including customer segmentation, and for operations, focusing on "Flexible Specialisation" and Kaizen.

6. Key learning points/critical reflection: Reflects on the challenges encountered during the project and the importance of professional project planning and stakeholder management.

Keywords

Bankassurance, Germany, Unit-linked life insurance, Tax efficiency, Wealth Management, UHNWI, HNWI, Portfolio Management, Customer segmentation, Operations, Marketing, Strategy, Inheritance, Tax wrapper, Financial planning

Frequently Asked Questions

What is the core purpose of this project report?

The report aims to find strategic improvements for "THE BANK GROUP Life Portfolio Plan (Germany)" to increase its contribution to strategic goals and create a win-win situation between the insurance company and the bank.

What are the primary target segments for the product?

The target segments are Core Affluent, High Net Worth Individuals (HNWI), and Ultra High Net Worth Individuals (UHNWI).

What is the main objective regarding the product’s marketing?

The report seeks to differentiate the product by moving away from purely technical arguments to comprehensive sales arguments focusing on tax efficiency, succession planning, and transparency.

Which methodology is used to assess operational processes?

The project employs the "service shop" process model and recommends the introduction of "Flexible Specialisation" and "Kaizen" principles to optimize operations.

What does the background section cover?

It provides an in-depth STEEP analysis and a benchmarking approach using Porter’s value chain to identify competitive advantages.

Which key factors influence the marketability of this insurance product?

The key factors include the German regulatory environment, tax efficiency, inheritance planning, and the demand for open architecture in investment management.

How does the proposed "Flexible Specialisation" process work?

It is a structured five-step process designed to ensure that UHNWI requests receive prompt, prioritized attention and high-level sign-offs while maintaining operational flexibility.

Why is the "cooling off period" a significant risk for the bank?

There is a market risk during the 15-day cooling off period after a policy is issued, as the bank must decide whether to hold cash or invest, creating potential regulatory and financial exposure.