According to the Market Statsville Group (MSG), the global Bancassurance Market size is expected to grow at a CAGR of 6.1% from 2023 to 2033.

Bancassurance is a financial agreement between a bank and an insurance company in which the bank earns additional revenue and a profit by selling the insurance company's policies. Endowment, unit-linked insurance plans (ULIPs), marine, health, and property are some insurance plans and policies covered. It assists banks in expanding their product portfolios, increasing turnover with no capital outlay, and providing a high return on equity. Furthermore, it is gaining enormous traction globally because it helps insurance companies increase their sales and profits by broadening their market reach and consumer base.

Global Bancassurance Market Definition

The global bancassurance market is expected to grow during the forecast period. The rapid growth of the BFSI sector, as well as the fact that several banks are opting for strategic partnerships to strengthen their market foothold, are driving the bancassurance market. Globally, the aging population will increase demand for financial products and services such as retirement plans and health and life insurance. This is yet another important growth factor. Rising economic growth in emerging economies will benefit the market. Furthermore, technological advancements and increased internet usage have influenced consumer purchasing habits, positively impacting the market. On the other hand, the outbreak of the Covid-19 pandemic may limit the growth of the bancassurance market in this region.

COVID-19 Impact on the Global Bancassurance Market

COVID-19, as well as the resulting social distancing and extended lockdowns, have effectively ended face-to-face contact and harmed insurance sales. Before the pandemic, insurers relied heavily on insurance agents and bancassurance, which relied on face-to-face contact between seller and customer. Banks have encouraged more partnerships with insurance players by relying on advanced digital capabilities, promotional activities, and features of new insurance policies. The sale of unit-linked insurance products accounts for nearly three-fourths of the premiums generated by the bancassurance channel. However, such products are expected to slow down in the coming years, as the focus during the pandemic has shifted to pure protection products. This may reduce the overall share of premiums generated by the bancassurance channel.

COVID-19 has also impacted corporate loans, as many businesses, particularly small businesses, have suffered economically due to lower business revenues and layoffs. The decline in corporate loans may indirectly affect the volume of corporate customers in the bancassurance channel. Banks that use open architecture can now offer their customers a wide range of products from various players. As a result, competition in the channel is fierce. As a result, some insurers are likely to reduce their reliance on the bancassurance channel.

Global Bancassurance Market Dynamics

Drivers: Steadily Rising Digitalization and Strategy

The widespread consolidation in the banking industry and aggressive digital strategies pursued by banks are expected to drive market growth. The increasing proportion of incremental deposits raised by various private banks and the credible solutions and plans with better services offered to their customers are expected to contribute to market growth.

Restraints: A Lack of Awareness

Lack of awareness about the insurance plans offered by banks to their customers limits market growth. Moreover, most banks are implementing the bancassurance concept, but the difficulty in attracting their customers to upsell the insurance product is expected to limit the overall industry's growth.

Opportunities: Banks are Introducing Mobile-Based Services

The continued introduction of mobile-based services by various banks worldwide, which enables them to improve their digital sales, bodes well for market growth. Other factors expected to drive market growth over the forecast period due to an increasing middle-class population, shifting customer purchasing patterns, and the rollout of high-speed internet networks.

Scope of the Global Bancassurance Market

The study categorizes the bancassurance market based on product type and model type at regional and global levels.

By Product Type Outlook (Sales, USD Million, 2019-2033)

• Life Bancassurance
• Non-Life Bancassurance

By Model Type Outlook (Sales, USD Million, 2019-2033)

• Pure Distributed
• Exclusive Partnership
• Financial Holding
• Joint Venture

By Region Outlook (Sales, USD Million, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Pure Distributor segment accounts for the highest CAGR during the forecast period by Model Type

Based on the model type, the global bancassurance market has been categorized into pure distributed, exclusive partnership, financial holding, and joint venture. The pure distributor segment is expected to grow faster as the bank acts as a mediator in this approach, offering solutions and services from multiple insurance companies. Typically, the insurance company pays the bank distribution commissions, which are offset by policyholder entrance and management fees. A sizable shareholding or cross-shareholding may be utilized to strengthen the bond between the bank and the insurer. The bank realized there was a real need to be able to offer insurance products to its customers, but it was unable or unwilling to develop this expertise internally, let alone make the significant upfront investments necessary. Customers like that advisors are independent. As a result, this concept is thought to work well in certain markets. At the same time, insurers may be disadvantaged as they have little influence over the customers who buy their policies.

Asia Pacific segment accounts for the highest CAGR during the forecast period by Region

Based on the regions, the global bancassurance market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. During the forecast period, Asia Pacific is expected to grow at the fastest compound annual growth rate (CAGR). The region is witnessing significant growth owing to the surging demand for bancassurance among emerging countries like India, China, and other ASEAN countries. Moreover, increasing awareness of insurance benefits and consumer concern for their family security are factors that augment the market’s growth over the forecast period.

Key Market Players in the Global Bancassurance Market

The global bancassurance market is highly competitive, with key industry players adopting strategies such as acquisitions, partnerships, agreements, product development, and expansion to strengthen their market positions. Most companies in the market are indulged in expanding business across regions, enhancing their capabilities, and molding strong partner relations.

Major players in the global bancassurance market are:

• ABN AMRO Bank N.V.
• American Express Company
• Banco Bradesco SA
• Banco Santander, S.A.
• BNP Paribas
• Citigroup, Inc.
• Crédit Agricole
• ING Group
• Wells Fargo
• Company 10

Key Issues Addressed

• What is the market size by various segmentation of the bancassurance by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the bancassurance market ?
• What are the key opportunities and trends for manufacturers involved in the bancassurance supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of bancassurance in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.