The global bancassurance market reached a value of US$ 1191 Billion in 2020. Bancassurance refers to an arrangement between a bank and an insurance firm, wherein the bank can earn additional revenue by selling the products of the insurance company. It also helps to expand the financial product portfolio of banks, thereby increasing their turnover with little or no capital outlay which further gives a high return on equity. Since banks have become the main distribution channels for insurance products, bancassurance also benefits the insurance firms as it increases their market reach and expands their consumer base. As this arrangement can be profitable for both companies, it is gaining popularity across the globe. Looking forward, IMARC Group expects the global bancassurance market to reach a value of US$ 1696 Billion by 2026, exhibiting a CAGR of 5.98% during 2021-2026.
Global Bancassurance Market Drivers:
Breakup by Product Type:
Currently, life bancassurance dominates the market, accounting for the biggest share. Rising awareness about insurance services and the implementation of strict guidelines related to wealth management products is majorly stimulating the demand for life bancassurance services.
Breakup by Model Type:
Pure distributor represents the most popular bancassurance model, holding the majority of the total market share. Pure distribution offers added sales opportunities to both banks and insurance firms with minimum investment.
On a geographical front, Europe enjoys the leading position in the market due to a favorable tax structure. Countries like France, Italy, Portugal and Austria are the major contributors to the industry growth, whereas Luxembourg, Russia and Slovenia serve as potential markets for bancassurance in Europe.
On examining the competitive landscape of the market, it has been found that it is highly fragmented with a number of small and large players. Some of the major players operating in the market include:
The global bancassurance market reached a value of US$ 1191 Billion in 2020.
What will be the global bancassurance market to reach a value of US$ 1696 Billion by 2026, exhibiting a CAGR of 5.98% during 2021-2026?
Rising geriatric population with greater need for health and life insurance as well as retirement plans, represents one of the key drivers for the global bancassurance market.
The rising penetration of digitalization trends in the banking sector and numerous technological advancements influencing consumer behaviors and their purchasing patterns, are some of the key trends in the global bancassurance market.
Sudden outbreak of the COVID-19 pandemic had resulted in increasing health concerns among individuals, thereby augmenting the demand for life bancassurance.
On the basis of the product type, the market has been bifurcated into life bancassurance and non-life bancassurance. Currently, life bancassurance holds the largest market share.
On the basis of the model type, the market has been classified into pure distributor, exclusive partnership, financial holding, and joint venture. Currently, pure distributor exhibits a clear dominance in the market.
Region-wise, the market has been classified into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America, where Europe dominates the global market.
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