About Bancassurance
The link between the insurance company and a bank that intends at offering insurance products or benefits to the customers of the bank is called bancassurance. The bank staff becomes the point of sale or point of contact for the customers in this partnership. The bank staff is counseled and supported by the insurance company by giving the complete product information, sales training and marketing campaigns. After the complete transaction is done the bank and the insurance company split the commission so obtained. Insurance policies that are sold by the banks are processed and further administered by the insurance company itself. This partnership can prove to be profitable for both sides. The banks can make additional revenue by promoting and selling the insurances, on the other hand, the insurance companies expand their customer base without expanding their sales team or paying extra commissions to the brokers or agents. This partnership has proved as an effective distribution channel in many countries.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
The companies are now exploring the market by adopting mergers & acquisitions, expansions, investments, new developments in existing products and collaborations as their preferred strategies. The players are also exploring new geographies and industries through expansions and acquisitions so as to avail a competitive advantage through combined synergies. Analyst at AMA Research estimates that European Players will contribute the maximum growth to Global Bancassurance market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
SBI (India), American Express (United States), ICICI (India), Barclays (United Kingdom), BNP Paribas (France), Santander (Spain), HSBC (United Kingdom), Société Générale (France), Standard Chartered (United Kingdom), Citigroup (United States), Raiffeisen Bankegruppe (Austria), Crédit Agricole (France), Scotiabank (Canada), Crédit Mutuel (France) and UniCredit (Italy) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are BBVA (Spain), Intesa Sanpaolo (Italy), Axis Bank (India), Groupe BPCE (France) and Ecobank (Lome).
Segmentation Overview
AMA Research has segmented the market of Global Bancassurance market by and Region.
On the basis of geography, the market of Bancassurance has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Business Model, the sub-segment i.e. Full Integrated Models will boost the Bancassurance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Type, the sub-segment i.e. Life Insurance(Term Insurance Plan, Endowment Plan, Unit Linked Insurance Plan) will boost the Bancassurance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Increasing Urbanization and Rising Disposable Income among the Middle Income Population is expected to Provide Stable Growth for the Bancassurance Market and The Growing Trend of Customer Loyalty and Retention by Providing Integrated Services to the Customer
Market Growth Drivers:
With the Increasing Competition in The Market, the Banking Institutions Have Started to Bring in Better Products and Extended Customer Service. and Growing Demand of Customers for Getting Complete Solutions and Services All Under One Roof will drive the growth of the Market
Challenges:
Lack of Service Disruptions or Data Safety and Security and Growing Digitalisation Has Allowed the Customers to Divide the Insurance Cover and Select the Bits That They Are Interested in
Restraints:
Lack of Transparency Associated With Insurance Policies
Opportunities:
An increasing trend of implementing governmental regulations in developing regions in order to support the domestic growth of the market and Improvement in the Processing Time by Ease of Accessibility and Reduced Turnaround Time would make the Process Hassle-Free for the Customers
Market Leaders and their expansionary development strategies
On January 23rd, 2020 - Barclays announced a new fintech partnership with Nimbla. In a high street banking first, Barclays has announced a partnership with Nimbla, a pioneer of single invoice insurance. Barclays’ one million SME clients will have the opportunity to benefit from the partnership, with the new ability to take out insurance against individual invoices, rather than the whole book. Nimbla's solution provides simplicity and speed and aims to disrupt a market where a sale typically takes days or weeks as opposed to a few minutes. Nimbla graduated from the Barclays Accelerator, powered by Techstars in 2018, having built a new digital platform to give business customers a flexible and affordable way to ensure individual invoices, helping protect them from insolvency and late payments.
The Reserve Bank of India and the insurance development and regulatory authority have a set of guidelines for companies that couple to form bancassurance. Based on the equity a bank should hold in a joint venture, the highest allowable value of equity, the type of banks and insurance companies that can couple together and the operation of bancassurance are all the factors that are regulated by RBI and IRDA. The IRDA has very recently drafted guidelines to promote open architecture in bancassurance. Currently, a bank has a tie-up with only one life insurer and one non-life insurer. But in the new model, the banks necessarily have to have multiple tie-ups.
Key Target Audience
Insurance Companies, Banks, Regulatory Bodies and Governmental Bodies
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.