According to the latest report by IMARC Group, titled “Bancassurance Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2021-2026,” the global bancassurance market size reached US$ 1191 Billion in 2020. Bancassurance is an arrangement between a bank and an insurance company that enables the bank to earn additional revenue and a profitable sum of money. This set-up allows the selling of numerous insurance products, which may include annuities, mortgage and health and life insurance. The utilization of banks as a distribution channel further aids the insurance companies to expand their consumer base without investing in sales agents or incurring broker commissions. This also helps them in growing their market reach while providing a high return of equity and improving their financial portfolio considerably.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Global Bancassurance Market Trends:
The global market is majorly driven by widespread consolidation in the banking sector. This is supported by the rising proportion of incremental deposits being raised by private banks, which has resulted in banking institutes in providing plans and credible solutions with better service to their customers. Additionally, a considerable rise in the aging population that increasingly needs life and health insurance and lucrative retirement plans is expected to create a positive outlook for the market. Since this partnership between banks and insurance firms serves as a one-stop-shop solution for numerous financial requirements and offers enhanced convenience to the customers, this is anticipated to gain prominence among the masses, particularly among the elderly customers. The market is further driven by the introduction of mobile-based services by banks, which has enabled them to boost their digital sales. This, coupled with increasing penetration of high-speed internet connection across the globe and the continual improvements in their digital strategies, is expected to provide an impetus to the market growth. Other factors, including the shifting purchasing patterns of the masses and the growing middle-class population on the global level, are diving the market further toward growth. On account of the aforementioned factors, the market is projected to reach a value of US$ 1696 Billion by 2026, exhibiting a CAGR of 5.98% during 2021-2026.
- Based on the product type, the market has been bifurcated into life and non-life segments, wherein life bancassurance represents the preferred product type.
- On the basis of the model type, the market has been divided into pure distributors, exclusive partnerships, financial holdings and joint ventures. At present, pure distributors hold the majority of the total market share.
- On the geographical front, Europe holds the leading position in the market. Other major regions include Asia Pacific, North America, Latin America, and Middle East and Africa.
- The competitive landscape of the market has been examined in the report with the detailed profiles of the key players operating in the market. Some of these players include ABN AMRO Bank N.V., The Australia and New Zealand Banking Group Limited, Banco Bradesco SA, The American Express Company, Banco Santander, S.A., BNP Paribas S.A., ING Bank N.V., Wells Fargo & Company, Barclays PLC, Intesa Sanpaolo SpA, Lloyds Banking Group plc, Citigroup Inc., Crédit Agricole S.A., HSBC Holdings plc, NongHyup Financial Group, Société Générale and Nordea Group.
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