STRATEGIC ANALYSIS OF BANCASSURANCE IN SABAH USING SWOT-TOWS-AHP FRAMEWORK

Nur Shaihana Masnirah Suhaimi; Mohd Noor Hidayat Jimainal; Iqrima Mas Mappangile

doi:10.51200/jaaab.7832

Authors

Nur Shaihana Masnirah Suhaimi Universiti Malaysia Sabah
Mohd Noor Hidayat Jimainal Universiti Malaysia Sabah
Iqrima Mas Mappangile Universitas Borneo Tarakan

DOI:

https://doi.org/10.51200/jaaab.7832

Keywords:

Bancassurance, Strategic Management, Analytic Hierarchy Process (AHP), Financial Inclusion, Rural Financial Services

Abstract

Bancassurance has emerged as an important financial service distribution model that integrates banking and insurance products through a single platform. Despite its growth potential, the development of bancassurance in Sabah remains constrained by geographical challenges, low insurance penetration, limited financial literacy, and infrastructure limitations. This study aims to identify the key internal and external factors influencing bancassurance development in Sabah, formulate strategic alternatives, and prioritize the most suitable strategies using an integrated SWOT-TOWS-AHP framework. Data were collected through focus group discussions involving 16 industry practitioners from banking, insurance, and financial advisory sectors, supported by secondary data from industry reports and academic literature. The SWOT analysis identified four strengths, four weaknesses, four opportunities, and four threats affecting the sector. These factors were subsequently transformed into 18 strategic alternatives using the TOWS matrix and prioritized through the Analytic Hierarchy Process (AHP). The results revealed that Strength-Opportunity (SO) strategies received the highest priority (47.9%), followed by Strength-Threat (28.7%), Weakness-Opportunity (12.9%), and Weakness-Threat (10.4%) strategies. The highest-ranked strategy was deploying trusted bank staff to underserved rural communities. The findings provide practical guidance for banks, insurers, and policymakers in enhancing bancassurance penetration and promoting financial inclusion in Sabah.

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