Bancassurance refers to an agreement between a bank and an insurance company. In bancassurance, the insurance company can use the bank’s distribution channels to sell products. Banks, in return, receive a certain fee from the insurance company. Moreover, banks can ultimately collect extra revenue and augment their profits by selling insurance policies. On the other hand, insurance companies can effectively expand their customer base without investing in deploying additional sales force or paying commission to brokers and agents.
There is an increase in the demand for bancassurance service due to rise in number of customers in banks. In developing countries such as India, Indonesia and others, there has been a significant growth in the number of bank account holders. Therefore, as the customer base of the banks increase there are high chances for the bancassurance for selling their policies to these customers. In addition, higher customer retention and increased profitability for both the banks and insurance companies drive the growth of the market. However, sale of policies depend upon the business of the bank and it is difficult for the banks for cross selling of insurance products have emerged as key industry problems. On the contrary, surge in demand for insurance policies is projected to further give major opportunity for the bancassurance market growth.
The bancassurance market is segmented on the basis of insurance type, model type, end user, and region. By insurance type, it is bifurcated into life insurance and non-life insurance. By model type, it is divided into pure distributor model, strategic alliance model, joint venture model, financial holding, and others. By end user, it is classified into personal and business. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the Bancassurance service market such as American Express Company, ABN AMRO Bank N.V., BNP Paribas S.A, Barclays PLC, Citigroup, INC, HSBC Group, State Bank of India, Scotiabank, Standard Chartered, and Wells Fargo. These players have adopted various strategies to increase their market penetration and strengthen their position in the bancassurance service market share.
There is an increase in the demand for bancassurance service due to rise in number of customers in banks. In developing countries such as India, Indonesia and others, there has been a significant growth in the number of bank account holders. Therefore, as the customer base of the banks increase there are high chances for the bancassurance for selling their policies to these customers. In addition, higher customer retention and increased profitability for both the banks and insurance companies drive the growth of the market. However, sale of policies depend upon the business of the bank and it is difficult for the banks for cross selling of insurance products have emerged as key industry problems. On the contrary, surge in demand for insurance policies is projected to further give major opportunity for the bancassurance market growth.
The bancassurance market is segmented on the basis of insurance type, model type, end user, and region. By insurance type, it is bifurcated into life insurance and non-life insurance. By model type, it is divided into pure distributor model, strategic alliance model, joint venture model, financial holding, and others. By end user, it is classified into personal and business. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the Bancassurance service market such as American Express Company, ABN AMRO Bank N.V., BNP Paribas S.A, Barclays PLC, Citigroup, INC, HSBC Group, State Bank of India, Scotiabank, Standard Chartered, and Wells Fargo. These players have adopted various strategies to increase their market penetration and strengthen their position in the bancassurance service market share.
Key Benefits For Stakeholders
- The study provides in-depth analysis of the global bancassurance service market along with the current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the global bancassurance service market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the global bancassurance service market from 2022 to 2031 is provided to determine the market potential.
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Key Market Segments
By Insurance Type
- Life Insurance
- Non-Life Insurance
By Model Type
- Pure Distributor Model
- Strategic Alliance Model
- Joint Venture Model
- Financial Holding
- Others
By End User
- Personal
- Business
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- Key Market Players
- Scotiabank
- HSBC Group
- Citigroup, Inc.
- ABN AMRO Bank N.V.
- Mitsubishi UFJ Financial Group, Inc.
- Wells Fargo
- American Express Company
- Standard Chartered
- State Bank of India
- BNP Paribas
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: BANCASSURANCE MARKET, BY INSURANCE TYPE
CHAPTER 5: BANCASSURANCE MARKET, BY MODEL TYPE
CHAPTER 6: BANCASSURANCE MARKET, BY END USER
CHAPTER 7: BANCASSURANCE MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the bancassurance market was valued at $901.46 billion in 2021, and is estimated to reach $1.77 trillion by 2031, growing at a CAGR of 7.4% from 2022 to 2031.Bancassurance is an arrangement between a bank and an insurance company allowing the insurance company to sell its products to the bank's client base. This partnership arrangement can be profitable for both companies. Banks earn additional revenue by selling insurance products, and insurance companies expand their customer bases without increasing their sales force.
Bancassurance provides increased profitability for both the banks and the insurance companies as banks receive extra commission on the sale of insurance policies from the insurance companies, whereas insurance companies get a customer base of the bank to sell their policies without having to invest in any marketing of their products. Therefore, this is a major factor driving the bancassurance market growth. In addition, the retention rate is higher as customers are loyal towards their banks and purchase the policies as it is good for them as per the financial advisory given to them by their banks. Thus, this factor drives the of the bancassurance market size growth. Furthermore, growing number of customers in banks mostly in the developing countries provides a major customer base for the bancassurance market, which drives the growth of the market. However, the sale of policies depend upon the footfall of customer in a bank, if the customer footfall in a bank branch is less, the sale of insurance policies in that branch is also lesser in number as compared to other branches where the footfall is higher. Therefore, this is a major restraint for the bancassurance market. Furthermore, it is difficult for the bank employees to do cross selling of insurance products and services along with their bank products. Thus, these are the major factors hampering the bancassurance market share.
The market also offers growth opportunities to the key players in the market. There has been a significant increase in the awareness about the importance of insurance policies among the customers. Bancassurance can leverage on this opportunity by offering various types of insurance policies to the customers. Furthermore, banks are partnering with insurance companies to form bancassurance in order to increase their customer satisfaction and with the rising demand for insurance policies, insurance companies are approaching banks to sell their products to the customers. Therefore, with the growing demand for insurance policies among customers, the demand for bancassurance services will also increase in the upcoming years. Thus, it will provide major lucrative opportunities for the growth of the bancassurance market.
The bancassurance market is segmented on the basis of insurance type, model type, end user, and region. By insurance type, it is segmented into life insurance and non-life insurance. By model type, it is bifurcated into pure distributor model, strategic alliance model, joint venture model, financial holding, and others. By end user, it is segmented into personal and business. Region wise, it is analyzed across North America (the U.S., and Canada), Europe (UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
The key players profiled in the study are American Express Company, ABN AMRO Bank N.V., BNP Paribas S.A, Barclays PLC, Citigroup, INC, HSBC Group, State Bank of India, Scotiabank, Standard Chartered, and Wells Fargo. The players in the market have been actively engaged in the adoption various strategies such as business expansion, product launch, and partnership to remain competitive and gain advantage over the competitors in the market. For instance, In July 2019, Canada-based Scotiabank has signed a long-term bancassurance pact BNP Paribas Cardif, to better serves its customers in the Pacific alliance countries. The agreement will be valid for a period of 15 years. Both the partners have agreed to develop protection and insurance plans which will be distributed to Scotiabank’s nine million retail customers in the Pacific Alliance Countries. With the help of this partnership the companies delivered more personal approach to bancassurance that build customer and bank relationship which provided a strategic advantage to the company and bancassurance market size.
Key Market Insights
By insurance type, the life insurance segment was the highest revenue contributor to the market, and is estimated to reach $1.28 trillion by 2031, with a CAGR of 6.3%. However, the non-life insurance segment is estimated to be the fastest growing segment with the CAGR of 11.1% during the forecast period.By model type, the pure distributor model segment dominated the global market, and is estimated to reach $577.64 billion by 2031, with a CAGR of 5.2%. However, the financial holding segment is expected to be the fastest growing segment during the bancassurance market forecast.
Based on end user, the personal segment was the highest revenue contributor to the market, with $546.35 billion in 2021, and is estimated to reach $954.90 billion by 2031, with a CAGR of 6.1%.
Based on region, Europe was the highest revenue contributor, accounting for $326.78 billion in 2021, and is estimated to reach $582.65 billion by 2031, with a CAGR of 6.3%.
Companies Mentioned
- Scotiabank
- HSBC Group
- Citigroup, Inc.
- ABN AMRO Bank N.V.
- Mitsubishi UFJ Financial Group, Inc.
- Wells Fargo
- American Express Company
- Standard Chartered
- State Bank of India
- BNP Paribas
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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