Bancassurance Market Size, Share, Growth, and Industry Analysis by Type (Life Bancassurance, Non-Life Bancassurance), by Application (Pure Distributor, Exclusive Partnership, Financial Holding, Joint Venture), and Regional Insights and Forecast To 2031

Updated On: 22 April 2024

bancassurance market Report Overview

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The global bancassurance market size was 1196442.31 million in 2021 and is expected to reach USD 1781167.83 million in 2027, exhibiting a CAGR of 6.86% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with bancassurance market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market growth and demand returning to pre-pandemic levels once the pandemic is over. 

Bancassurance, or bank insurance model (BIM), refers to an arrangement wherein insurance products are sold through banking channels through tie-ups. Bancassurance is a procedure between a bank and an insurance company consenting the insurance company to sell its products to the banks client base. This partnership arrangement can be profitable for both companies. Banks earn additional revenue by selling insurance products, and insurance companies enlarge their customer bases without increasing their sales force. The global penetration of the Internet and smart gadgets and evolved customer expectations have increased the implementation of social media platforms by insurance firms.  Bancassurance can influence on this opportunity by advising several types of insurance policies to the customers. Furthermore, banks are partnering with insurance companies to form bancassurance in order to increase their customer satisfaction and with the rising demand for insurance policies, insurance companies are impending banks to sell their products to the customers. As banks continue to expand their reach and digitalize their services the distribution of insurance products through online banking platforms further augments the convenience and expediency for customers.

Banks can ultimately degenerate extra proceeds and augment their profits by selling insurance policies. On the other hand, insurance companies can effectively expand their customer base without financing in deploying additional sales force or paying commission to brokers and agents. These partnerships often lead to inventive products that are precisely designed to meet the needs of the banks customers, increasing the probabilities of acceptance. Technological advancements and innovation activate unique revenue augmenting opportunity which will upsurge the bancassurance market growth. Participating are fixing their efforts on encouraging R&D. Manufacturers need to stay updated with changing market trends and develop products that meet growing consumer needs. Technological development are supporting the regional market growth. Companies coming up with progressive technological solutions for firming their positions.

COVID-19 Impact: Pandemic hampered the market due to unexpected disruption in the sector

COVID- 19 pandemic has extremely affected the whole world. It caused many unexpected disruption and affected the industry. COVID- 19 had negative impact on the market due to economic slowdown, unpredictability in financial sector and high unstable market. The pandemic resulted in decreased demand due to a disrupted supply chain, drop in sales of products, delivery schedules. Travel bans imposed affected business collaboration and partnership. Demand had recently reduced due to travel bans and lockdown during the COVID-19 pandemic. The continuous loss in the business due to the lockdown measures is projected to directly influence the growth of the investments in the market.

Latest Trends

"Use of innovative products to boost the market growth "

Technological improvement and development will further enhance the presentation of the product, allowing it to obtain a varied range of requests in the market. Technological advancement will improve performance and propel the market growth. Technological advancement with high demand are increasingly setting a force to increase the productivity. Some players focus on product improvement to meet consumer requirements and likings. Constant innovation in manufacturing of products is anticipated to stimulate product demand.

bancassurance market Segmentation

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• By Type Analysis

According to type, the market can be segmented into life bancassurance, non-life bancassurance.

Non-life bancassurance will capture the maximum market share through forecast period.

• By Application Analysis

According to application, the market can be segmented into pure distributor, exclusive partnership, financial holding, joint venture.

bancassurance market players cover segment as joint venture will dominate the market share during forecast period.

Driving Factors

"Increasing elderly population to boost the market growth"

The growing aged population is appealing the need for retirement policy plans and health and life insurance policies which represents one of the key factors positively influencing the demand for bancassurance solutions around the world. The demand is motivated by the growth of these industry which is anticipated to enhance market growth.

Higher customer retention to upsurge the market.

Growing number of customers in banks mostly in the developing countries provides a major customer base for the bancassurance market, which pushes the growth of the market. Customers are loyal towards their banks and purchase the policies as it is good for them as per the financial advisory given to them by their banks. Furthermore, the bank has a large customer base and therefore chances of customer retention upsurge which is helpful for the insurance company.

Restraining Factors

"Cross selling of products to hamper the market growth"

Cross selling is hampering development of bancassurance market. It is tough for the bank employees to do cross selling of insurance products and services along with their bank products. Thus, these are the chief reasons hampering the bancassurance market sector. Technical difficulties will reduce the industry revenue.

bancassurance market Regional Insights

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"Asia Pacific to dominate the region due to rapid economic expansion "

Asia Pacific is further expected to witness growth in the bancassurance market share. The region is dominating the market due to large population, rapid economic expansion and increasing awareness of insurance products. The rising inhabitants and increasing income levels are also contributing to the development of the market. Upsurge in investments by key market players for the R&D undertakings and enlargement of their production abilities and product portfolios are projected to upsurge the growth. The expansion of regional market is being aided by technological developments.

Key Industry Players

"Key players focus on partnerships to gain competitive advantage"

The key players are dynamically contributing in strategic events that are aimed at maintaining strong market position and increasing market share by merger, partnerships and others. Key players are motivated to introduce new innovative products. They are spending severely on research and development in order to arise with more new technology so that they can maintain and improve their existing market. The market changes are dynamic such as market expansion, partnership and merger.

List of Market Players Profiled

• The Australia and New Zealand Banking Group Limited (Australia)
• HSBC Holdings plc (U.K.)
• The ING Group (Netherlands)
• Nordea Group (Denmark)
• Wells Fargo & Company (U.S.)

Report Coverage

The report provides scrutiny and information according to market sectors. Business overview, financial overview, product portfolio, new project launch, recent development enquiry are the factors included in the profile. The report incorporates completely examined and appraised evidence of the noticeable players and their position in the market by methods for various descriptive tools. The report covers national and regional level market size and forecast. The report gives businesses the facility to research new prospect in many areas. The report shows to be an operational tool that players can use to gain a competitive superiority over their opponents and ensure lasting achievement in the market.