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The bancassurance market size is estimated to increase by USD 404.89 billion between 2022 and 2027. The size of the market is forecast to grow at a CAGR of 6.66%. The growth of the market depends on several factors, including the increased need for insurance, the increase in the number of HNWIs in developing regions, and the increasing government regulations on mandatory coverage in developing countries.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increased need for insurance is the key factor driving global market growth. In 2018, the total number of natural catastrophes, including droughts, floods, hurricanes, tsunamis, earthquakes, epidemics, and volcanic activity, was nearly 315. In 2019, three major typhoons, including Lekima, Hagibis, and Idai, resulted in huge losses in terms of human life and property. In 2020, the world witnessed the outbreak of the COVID-19 pandemic, which led to a global health crisis. The emergence of such natural calamities and health crises led to an increase in the demand for insurance. Several individuals and organizations are proactively adopting to financially protect themselves and their families from unexpected losses and damage due to unforeseen incidences.
With the increase in demand, the market is expected to grow during the forecast period. In addition, vehicle collisions lead to thousands of fatalities every year globally. In the US, more than five million accidents take place in a year, resulting in over 90 fatalities daily. Approximately 75% of the reported motorcycle crashes result in injuries or death. The same figure for car crashes is approximately 25%. This showcases the high demand for life, medical, accidental, and vehicle insurance. This will lead to the growth of the global market during the forecast period.
The emergence of digital marketing platforms is the primary trend in the global market. Digital marketing platforms (such as social media platforms) aid in propagating effective branding and marketing communication to target consumers. The global penetration of the Internet and smart gadgets and evolved customer expectations have increased the adoption of social media platforms by firms. According to The World Bank Group, in 2021, more than 60% of the global population had access to the Internet. This percentage is expected to increase during the forecast period. Social media platforms aid in increasing a firm's market reach. Such platforms help propagate awareness about the multiple product offerings of a firm.
Thus, the emergence of the digital marketing platform helps in increasing the revenue of key market players. Insurance brokerage firms employ social media platforms to resolve product queries, collect customer feedback, and provide simultaneous policy updates. For instance, Aon PLC has a significant presence on YouTube, Facebook, Twitter, and LinkedIn. The adoption of digital marketing strategies by key market players is expected to positively impact the global market during the forecast period.
Risk to reputation is a major challenge to global market growth. The reputation of banks is an essential element in building trust between the customer and the bank, and word of mouth is one of the key factors in promoting banks. Therefore, poor customer service or any inefficiency exhibited in the delivery of services of the bank may tarnish its reputation.
As banks act as corporate agents for insurance companies in the model, they are held responsible for any problem regarding inefficient or delayed delivery of services to the client, even though the problem may be of the insurance company. Hence, the reputation of the banks is at stake in the event of late or poor service delivery. Also, insurance fraud can tarnish a bank's reputation. This could highly influence a bank's reputation and affect its profitability.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABN AMRO Group NV- The company offers bancassurance solutions such as home, car, travel, and liability insurance.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the life bancassurance segment will be significant during the forecast period. A life policy provides financial protection against any monetary loss that may take place because of an unexpected or early death of the insured person. This helps the beneficiaries to tackle financial uncertainties in the event of the death of the insured person. Investing in life insurance has become a key financial decision for insurance customers. With growing awareness, providers are witnessing massive growth in demand for life insurance policies.
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The life bancassurance segment was valued at USD 726.75 billion in 2017 and will continue to grow by 2021. The major factors for the growth of the life segment include the increasing average age of the population in North America and Europe. People who are financially stable and in their 30s are more inclined to get their life insured to ensure that their family is financially safe in their absence. Other factors, such as the frequent occurrence of natural calamities and terrorist attacks, which cause unexpected deaths, also drive the growth of the life-bancassurance segment. Hence, life bancassurance companies are expected to sell more products on life cover. These factors propel the growth of the global market during the forecast period.
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APAC is estimated to contribute 53% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is driven by growing economies, higher penetration of insurance, and a burgeoning middle-class population in the region. The deregulation of banks and policy has facilitated the formation of multiple partnerships of banks with insurance companies. For instance, in September 2019, United India Insurance Co. Ltd. partnered with Syndicate Bank to provide a wide range of non-life policies. Taiwan and Malaysia have a high penetration, while India and China are growing rapidly in the region.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market thrives on strategic partnership arrangements between financial institutions and insurance providers, leveraging existing customer bases and sales forces to offer insurance products. Commission-based sales incentivize banks to enhance retention rates through financial advisory services, maximizing footfall in branches. Porter's five forces analysis reveals the competitive intensity and opportunities for cross-selling, particularly in the European region.
Various models like pure distributor, strategic alliance, and joint venture facilitate the distribution of personal and non-life insurance, catering to diverse end users. Online and app-based policies streamline the purchasing process with flexible options and benefits tailored to individual needs. Amidst economic growth and demographic shifts towards an aging population, bancassurance bridges gaps in health insurance and retirement planning, fostering synergies within the financial services sector.
Bancassurance Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.66% |
Market growth 2023-2027 |
USD 404.89 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.35 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 53% |
Key countries |
China, Japan, France, Germany, and Spain |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABN AMRO Group NV, American Express Co., Australia and New Zealand Banking, AXA Group, Banco Bradesco SA, Banco Santander SA, Barclays PLC, BNP Paribas SA, Citigroup Inc., CNA Insurance Corp., Credit Agricole SA, Credit Mutuel, HSBC Holdings Plc, ING Groep NV, Intesa Sanpaolo Spa, Lloyds Banking Group Plc, Metlife Inc., Nordes Bank Abp, Wells Fargo and Co, and Yes Bank Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
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