Bancassurance is a relatively new concept in the financial services sector wherein a bank and an insurance firm form an alliance, permitting the insurance company to sell its products to the clients of the bank. This collaboration is profitable for both the parties as it provides the insurance company with a broader consumer-base while the bank earns additional revenue, also known as fee-based income, apart from the interest. Some of the bancassurance services which are offered to consumers include life and health insurance along with mortgage and annuity. These products tend to complement the existing bank products which further leads to additional selling opportunities for both the bank and the insurance company. As per the bancassurance market report by IMARC Group, the market reached a value of more than US$ 1,100 Billion in 2017.
Development in the private banking sector is majorly providing a boost to the growth of the bancassurance market. Private banks are adopting advanced technologies to strengthen their IT base and offer faster customer services. Moreover, in order to sustain the mounting competition in the market, these banks are consistently revising their policies and offering improved services which, in turn, is supporting the overall development of the industry. Further, according to a WHO report, the proportion of the world population with the age above 60 years will experience a double-digit growth by the year 2050 and outnumber the children who are younger than 5 years of age. As the elderly population has greater requirement for health and life insurances, and retirement plans, the bancassurance alliances are likely to witness positive growth in the market. Looking forward, the global bancassurance market size is expected to reach US$ 1,571 Billion by 2023, exhibiting a CAGR of more than 6% during 2018-2023.
Want to find out more about this report? Click here for a free sample: https://www.imarcgroup.com/request?type=report&id=982&flag=B
Segmentation on the basis of Products and Bancassurance Models
On the basis of products, the market is divided into life bancassurance and non-life bancassurance. Presently, life bancassurance represents the most popular product type, accounting for the majority of the total bancassurance market share. Most of the demand for life bancassurance is emerging from the developing economies due to growing middle-class population and the implementation of rigid regulations concerning wealth management products.
The market is also segregated on the basis of bancassurance models which include pure distributor, exclusive partnership, financial holding and joint venture. Amongst these, pure distributors are the preferred model as they offer additional sales opportunities with minimum investments for banks and insurance firms.
Asia Pacific dominates the market
Region-wise, the market is divided as Asia Pacific, Europe, Latin America, North America, and Middle East and Africa. At present, Europe is the leading market for bancassurance owing to favorable tax structures and reduced social security costs in the region. However, Asia Pacific is expected to emerge as the largest market for bancassurance by 2023 due to strong economic growth and a burgeoning middle class.
Highly Fragmented Market
On analyzing the competitive landscape of the bancassurance market, it has been found the market is highly fragmented and consists of several small as well as large players. Some of the major players operative in the market include American Express, Banco Santander, BNP Paribas, Citigroup, Crédit Agricole, HSBC, ING Group, Wells Fargo, ABN AMRO, ANZ, Banco Bradesco, Barclays, Intesa Sanpaolo, Lloyds Bank, NongHyup Financial Group, Nordea Group and Société Générale.
About Us
IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.
IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.
Contact us
IMARC Group
309 2nd St, Brooklyn, NY 11215, USA
Website: www.imarcgroup.com
Email: sales@imarcgroup.com
USA: +1-631-791-1145
Follow us on twitter: @imarcglobal