Bancassurance Market Analysis APAC,Europe,North America,South America,Middle East and Africa - China,Japan,France,Germany,Spain - Size and Forecast 2023-2027

Bancassurance Market Forecast 2023-2027

The bancassurance market size is estimated to increase by USD 404.89 billion at a CAGR of 6.66% between 2022 and 2027. The market's growth hinges on various factors, notably the rising demand for insurance, driven by evolving risk landscapes, consumer behavior, and changing consumer needs. Additionally, the increasing number of high net-worth individuals (HNWIs) in developing regions fuels market expansion, as they seek comprehensive coverage for their assets and investments. Moreover, government regulations mandating insurance coverage in developing countries further propel market growth, ensuring broader financial protection for citizens. As these trends converge, the insurance industry experiences significant opportunities for expansion and innovation to meet the evolving needs of global markets.

What will be the size of the Market During the Forecast Period?

To learn more about this report, Download Report Sample

In the Bancassurance market, banks leverage their branch networks and expertise in cross-selling to offer insurance products to customers. Factors such as domestic business environment and legislation influence the scope of operations. Internet penetration and technological innovations enable banks to better understand, consumers' behavior and tailor insurance solutions to their purchase habits. Bancassurance involves the integration of insurance undertakings within the banking sector, offering both life insurance and non-life insurance policies. The pure distributor model is gaining traction, particularly in developing regions, offering financial services beyond traditional boundaries. Financial advisory plays a crucial role in raising awareness and guiding customers in selecting suitable insurance products to build their financial portfolios.

Market Dynamics and Customer Landscape

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. Bancassurance refers to the business model where banks sell insurance products to their customers. This model combines the strengths of both banking and insurance industries, allowing banks to expand their product offerings and insurance companies to reach a wider customer base. The Bancassurance market is growing rapidly, driven by factors such as increasing customer demand for comprehensive financial solutions, regulatory support, and technological advancements. Companies are using various marketing strategies to penetrate the Bancassurance market. For instance, they are focusing on building strong partnerships with banks to offer bundled products and services. They are also leveraging digital channels to reach customers and enhance their overall experience. Moreover, they are investing in customer analytics to gain insights into customer behavior and preferences, enabling them to tailor their offerings accordingly.

The market is also witnessing a trend towards customization and personalization. Marketers are recognizing the importance of providing solutions that cater to the unique needs of different customer segments. They are using data and analytics to segment customers and offer targeted products and services. Additionally, they are focusing on creating a seamless customer journey, from product discovery to purchase and servicing. In conclusion, the Bancassurance market is an exciting space, driven by the convergence of banking and insurance industries and the growing demand for comprehensive financial solutions. Marketers are using various strategies to penetrate this market, including partnerships, digital channels, customer analytics, and customization.

Key Driver

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.

In Europe, the financial and banking sectors have witnessed significant growth in the Bancassurance market due to the benefits it offers. With customization becoming a key factor, insurance products are now being tailored to meet individual needs. The KYC verification process ensures a flexible and accessible insurance solution for clients. The aging population and economic growth have led to an increase in life insurance premiums and non-life insurance premiums. Partnerships between banks and insurance companies provide synergies, expanding distribution channels and selling culture. Amidst the uncertainties of natural calamities and health crises, such as the COVID-19 pandemic, the demand for insurance has surged. Europe's Bancassurance market offers region-specific solutions, including health insurance and retirement product plans, catering to the unique needs of the European population.

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.

Key Trends

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.

Particularly social media brings significant benefits to the banking and insurance industries. With over 60% of the global population having Internet access and this number projected to grow, these platforms expand a firm's reach and facilitate customized communication. Customers can undergo the KYC verification process online, ensuring flexibility and convenience. In the insurance sector, this digital shift aids in marketing life insurance premiums, non-life insurance premiums, health insurance, and retirement product plans. Partnerships between banks and insurers create synergies, catering to an aging population's needs and economic growth. The distribution of insurance products through digital channels aligns with the selling culture and economic advancement in Europe.

Thus, the emergence of the digital marketing platform helps in increasing the revenue of key market players. Insurance brokers 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.

Key Challenge

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 profitts

Market Customer Landscape

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

Who are the Major Bancassurance Market Players?

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:

• 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

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.

Market Segmentation

 

The bancassurance market encompasses a diverse range of financial services, leveraging the strategic partnership between banks and insurance companies to offer life insurance and non-life insurance products to consumers. This model enables banks to capitalize on their extensive branch network and footfall, enhancing awareness and financial advisory services. Technological innovations and internet penetration have revolutionized purchase habits, facilitating cross-selling opportunities and improving retention rates. In developing regions, where legislation supports this collaboration, bancassurance plays a pivotal role in expanding financial services access. Moreover, the pure distributed model is gaining traction, catering to diverse ,consumers' behaviour  and financial needs, driving growth in mortgages, annuities, and other products.

By Type

In this model, insurance firms collaborate with banks to expand their customer base and sales force, while pure distributed operating without commission, promote awareness and importance of insurance coverage. With digital transformation and increasing mobile phone usage, marketing strategies have evolved. Revenue is generated through the sale of various insurance policies, including life and non-life, to customers. Financial advisory services are also offered. Developing countries present significant growth opportunities due to untapped demand and increasing footfall in branches. Restraints include competitive intensity, new entrants, and substitutes. Cross-selling and pricing options are key strategies for retaining buyers. The market can be segmented by insurance type, model type, end user, region, and partnership structure, including the pure distributed model, strategic alliance model, and joint venture model, with financial holdings playing a significant role in business and personal insurance.

By Product

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. . These include financial protection for immediate family members, high-risk life cover, death benefits, improved cash valuation through permanent life insurance schemes, and tax advantages. The availability and flexibility of these insurance products are enhanced through the KYC verification process and partnerships between banks and insurance providers. The aging population and economic growth in Europe are fueling the demand for customized insurance solutions, such as health insurance and retirement product plans. The banking sector plays a crucial role in this distribution channel, leveraging its selling culture and synergies with the insurance industry. Both life and non-life insurance premiums contribute to the growth of the bancassurance market in Europe.

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.

Get a glance at the market contribution of various segments Request a PDF Sample

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.

Which are the Key Regions for the Market?

For more insights on the market share of various regions Request PDF Sample now!

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 global bancassurance market is experiencing growth in developing countries, including India and China, due to expanding economies, increasing insurance penetration, and a growing middle class. Insurance companies form partnership arrangements with banks to expand their customer base and sales force. Revenue is generated through the sale of various insurance products, such as unit-linked policies and endowments, in a strategic alliance model. Bancassurance models include the pure distributor model, strategic alliance model, and joint venture model. Financial advisory services are also offered to customers. Restraints include competitive intensity from new entrants and substitutes. The complexity of insurance policies and marketing efforts aim to increase demand and awareness among buyers. Suppliers include banks and insurance companies offering life and non-life insurance. Pricing options and regional differences influence the end user experience.

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.

Segment Overview

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. 

• Product Outlook
  • Life bancassurance
  • Non-Life bancassurance

• Type Outlook
  • Pure distributor
  • Joint venture
  • Exclusive partnership
  • Financial holding

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market thrives on strategic partnership arrangements between financial institutions and insurance providers, brokers, 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.

The market is influenced by various impacting factors, including profitability and the demand for insurance policies. With a focus on private banking and improved products, this model generates tax-based profits and addresses diverse needs such as credit life, pensions, return of equity and mortgage insurance. It encompasses offerings like property and casualty insurance and marine and aviation policies. As the banking industry adopts digital strategies and mobile-based services, bancassurance benefits from digital sales and evolving purchasing patterns. Leveraging high-speed internet networks, collaborations between banks and insurers attract investment from venture capital firms and technology companies, enhancing business operations and expanding through funding rounds, seminars, exhibitions, SMS, bank applications, and emails. 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.

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	If our market growth and trends report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Request PDF sample

What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

We can help! Our analysts can customize this report to meet your requirements. Get in touch