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The global bancassurance market reached around USD 1.57 billion in the year 2024. The market is further expected to grow at a CAGR of 7.5% between 2025 and 2034 to reach a value of USD 3.03 billion by 2034.
Base Year
Historical Year
Forecast Year
Global Bancassurance Market Report Summary | Description | Value |
Base Year | USD Billion | 2023 |
Historical Period | USD Billion | 2018-2023 |
Forecast Period | USD Billion | 2024-2032 |
Market Size 2023 | USD Billion | 1.57 |
Market Size 2032 | USD Billion | 3.03 |
CAGR 2018-2023 | Percentage | XX% |
CAGR 2024-2032 | Percentage | 7.5% |
CAGR 2024-2032 - Market by Region | North America | 7.8% |
CAGR 2024-2032 - Market by Country | USA | 7.9% |
CAGR 2024-2032 - Market by Country | Brazil | 7.7% |
CAGR 2024-2032 - Market by Product | Life Bancassurance | 8.1% |
CAGR 2024-2032 - Market by Bancassurance Models | Exclusive Partnership | 8.0% |
Market Share by Country 2023 | Australia | 2.3% |
Bancassurance is characterised as a relationship between an insurance undertaking and a bank, the latter being used for the selling of their products as a distribution channel. This system enables banks to earn profits beyond those derived from taxes, thereby increasing bancassurance demand growth.
The insurance company, on the other hand, may broaden the customer base without charging agents or broker fees and sales. These institutions offer a variety of investment and financial services and products through financial insurance, such as health insurance, credit life, pensions, life insurance, and mortgages, which further fuels the growth of the industry.
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The Impact of Private Banking
In recent years, with the growth of the private banking sector, the banking sector has undergone a systemic and functional change. Banking institutions have begun introducing improved products and customer service to withstand the growing competition. Private banks are increasingly investing in digital solutions to enhance their bancassurance services. A recent survey indicated that digital bancassurance represented just 19% of non-life insurance sales and 2% of life insurance sales, although notable growth has been observed.
As per the bancassurance industry analysis, the emergence of "open insurance" within the European Union is also reshaping the traditional bancassurance model. This change allows private banks to share customer data more openly with insurance providers, resulting in more customised and integrated insurance products.
To promote domestic business development, new legislation was also introduced by the governments of developing regions, such as East Africa, China, and the Middle East. Countries like Kenya and Ethiopia are making progress in their infrastructure development and offering economic reforms that encourage private sector involvement in financial services. For example, Ethiopia is opening up state-owned sectors to attract private investment, which in turn boosts bancassurance by expanding banking operations and increasing the demand for financial services.
Advancements in Financial Sector
The bancassurance market dynamics and trends are being driven by market consolidation, which has established banking insurance as a key element in the advancement of financial services.
According to the Life Insurance Association of Japan, in Japan, the number of individual life insurance policies reached 194.58 million by the end of the fiscal year 2022, up from 181.29 million in 2018. In Japan, the number of new individual insurance policies rose to 12.90 million in 2022, up from 11.35 million in 2020. According to the Life Insurance Association of Japan, this encompasses 3.46 million health insurance policies, 1.72 million term insurance policies, and 1.81 million whole life insurance policies. Incorporating these products into their portfolio allows banks to offer a more comprehensive range of financial solutions, thereby boosting market revenue and improving customer satisfaction and loyalty.
September 2024
Max Life Insurance Company Ltd. (Max Life) established a bancassurance partnership with CSB Bank (CSB), a private sector banking institution in India. This collaboration is designed to provide a variety of savings, protection, retirement, and group life insurance products to over 2.5 million customers of CSB.
August 2024
ICICI Lombard General Insurance announced that it has partnered with seven different financial institutions to create bancassurance collaborations. This initiative aims to strengthen its distribution network and increase the availability of insurance services for customers across the country.
Advancements in technology enable innovative insurance solutions and streamlined processes. Artificial Intelligence (AI) is revolutionising the insurance sector by improving operational efficiency, particularly in areas like claims processing, fraud detection, and customer interaction. The use of AI-powered chatbots is on the rise, offering personalised and immediate support to policyholders, which can reduce processing times and enhances customer satisfaction, boosting the bancassurance market value. In 2024, insurance companies are increasingly utilising AI for more precise risk evaluations and predictive analytics, enabling them to tailor policies and refine underwriting practices.
Growing awareness and understanding of financial products drive demand for integrated services. In many regions, there has been an increased effort to improve financial literacy, which has led to a growing demand for a wide range of financial products. A 2023 report reveals that the global bancassurance market is expected to grow at an annual rate of 7% through 2025, as more consumers recognise the benefits of integrated banking and insurance services.
Merging banking and insurance operations can be challenging and may require significant operational adjustments. For instance, a 2023 study conducted by Accenture highlighted that numerous banks across Europe faced challenges in adopting digital platforms for bancassurance. This situation necessitated significant investments in information technology and comprehensive operational changes to synchronise banking and insurance processes. Such modifications are considered essential to meet consumer demand and adhere to regulatory standards, positively impacting bancassurance demand forecast.
Strict regulations in different regions can complicate compliance and operational flexibility. In 2024, the Saudi Arabian Monetary Authority (SAMA) introduced new regulations that mandated stricter compliance protocols for banks engaged in insurance services. This development has resulted in increased operational complexity and has restricted the ability of banks to quickly introduce new products.
Customers may have reservations about purchasing insurance from their bank, potentially impacting sales. Furthermore, a 2023 survey by McKinsey stated that 27% of bank customers in North America were reluctant to purchase insurance through their banks. This hesitation is due to concerns regarding the representatives' product knowledge and their capability to address insurance-related questions effectively.
Bancassurance provides a comprehensive solution by integrating banking and insurance services, which boosts customer convenience and satisfaction, thereby increasing the growth of the bancassurance market. In 2023, Santander Bank partnered with Zurich Insurance to integrate insurance services into their banking app, allowing customers to easily access a range of insurance products, which improved convenience and customer engagement.
Banks can leverage existing customer relationships to cross-sell insurance products, increasing market penetration and revenue. A 2024 report from McKinsey stated that banks that build strong customer relationships have successfully boosted their revenues through cross-selling insurance products. For instance, a European bank experienced a 30% increase in revenue by leveraging customer data to offer tailored insurance solutions, significantly enhancing its market position.
Banks' extensive branch networks provide broad access to insurance products, reaching a wider audience. In 2024, HDFC Bank in India effectively used its extensive branch network to expand the distribution of insurance products, successfully reaching rural and underserved communities. This strategy led to an 18% rise in the bank's insurance penetration, demonstrating the potential of branch networks to improve access to financial services.
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“Global Bancassurance Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
Market Breakup by Product
Market Breakup by Bancassurance Models
Market Breakup by Region
By Product Insights
Life bancassurance is expected to witness a CAGR of 8.1% in the forecast period as it focuses mainly on products like life insurance, annuities, and pension plans. This sector has seen significant growth, particularly in Asia, where banks leverage their extensive customer bases to promote life insurance offerings. In 2024, Asian markets, especially in countries like China and India, experienced remarkable growth in life bancassurance, fuelled by rising financial literacy and an increasing demand for retirement planning solutions, boosting the bancassurance industry revenue.
Non-life bancassurance includes general insurance products that cover risks related to health, property, vehicles, and liability. In areas such as Europe and North America, non-life bancassurance has rapidly expanded, driven by a growing demand for products like health and auto insurance.
By Bancassurance Models Insights
In the exclusive partnership model, banks establish exclusive partnerships with a single insurance provider to promote their products. This segment is expected to witness a CAGR of 8.0% between 2024 and 2032 as this strategy enhances service integration and fosters better collaboration, enabling banks to utilise customer data for tailored insurance solutions. This approach has proven particularly effective in regions such as Asia and Europe, where consumers are familiar with maintaining long-term relationships with their financial service providers as well as enhancing the bancassurance market opportunities.
In Joint venture model, banks and insurance companies collaborate to form a joint venture, creating a new entity that delivers combined banking and insurance services. this partnership allows both parties to leverage shared resources and customer bases while concentrating on specific regional markets.
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Asia Pacific Bancassurance Market Drivers
The regional market growth is expected to be driven by emerging markets, particularly China and India. The market in China is expected to witness a CAGR of 7.6% in the forecast period. Moreover, raising living standards and the growing middle- and high-income classes in developed regions simultaneously are leading to the growth of the market. According to Invest India, the life insurance sector's penetration has increased from 2.2% in FY 2002 to 3.2% in FY 2022, which can also aid the demand of bancassurance market. Similarly, the penetration of the non-life insurance sector has risen from 0.5% in FY 2002 to 1% in FY 2022. In terms of insurance density, life insurance has grown from USD 9.10 in FY 2002 to USD 69 in FY 2022, while non-life insurance density has increased from USD 2.40 in FY 2002 to USD 22 in FY 2022.
CAGR 2024-2032 - Market by | Country |
USA | 7.9% |
Brazil | 7.7% |
China | 7.6% |
UK | 7.5% |
Mexico | 7.1% |
Canada | XX% |
France | XX% |
Italy | XX% |
Japan | XX% |
India | XX% |
Australia | XX% |
Saudi Arabia | 7.0% |
Germany | 6.7% |
North America Bancassurance Market Growth
North American region is expected to witness a CAGR of 7.8% in the forecast period. The National Association of Insurance Commissioners reports that in the United States, the property/casualty insurance industry experienced notable shifts in income from 2019 to 2023, with net investment income increasing from USD 56.5 billion in 2019 to USD 72.6 billion in 2023, marking a growth of approximately 28.5%. The USA market is also expected to witness a CAGR of 7.9% in the forecast period. This rise further enhances bancassurance market revenue, as providing property and casualty insurance offers banks additional revenue streams beyond traditional banking and life insurance products.
Europe Bancassurance Market Trends
Several European countries have readily adopted regulatory frameworks that support bancassurance. UK and Germany markets are anticipated to witness CAGRs of 7.5% and 6.7% between 2024 and 2032. A key instance of this is the implementation of the EU’s Insurance Distribution Directive (IDD), which has developed standardised practices in bancassurance, enhancing transparency and protecting customer interests, which increases the bancassurance market expansion. This advancement has fuelled customer confidence and facilitated the growth of bancassurance across Europe. Furthermore, European banks have been leveraging digital platforms to better integrate insurance products into their banking services.
Middle East and Africa Bancassurance Market Analysis
Developed countries in the region have established state insurance coverage laws that include life and health insurance, property and casualty insurance, and specialised plans such as marine and aviation policies, which are further driving the bancassurance demand. The Saudi Arabian market is expected to witness a CAGR of 7.0% in the forecast period. In Africa, the bancassurance sector is experiencing significant growth, driven by government efforts to enhance financial inclusion. Nations such as Kenya and South Africa are at the forefront of regulatory changes that promote the convergence of insurance and banking services. Additionally, the sector is experiencing rapid expansion due to an increasing awareness of the importance of insurance.
Latin America Bancassurance Market Dynamics
Countries in the region are focusing on improving financial inclusion, leading to a significant rise in bancassurance market share. Brazil and Mexico markets are expected to witness CAGRs of 7.7% and 7.1% in the forecast period respectively. Government bodies in countries like Brazil, Mexico, and Chile are encouraging partnerships between banks and insurance firms to offer insurance products that are both accessible and affordable. With the growth of the middle class, there is an increasing demand for both life and non-life insurance options. Bancassurance has successfully capitalised on this trend by combining these products with existing financial services, making it easier for consumers to access insurance.
Startups are developing digital platforms that successfully connect banks and insurance companies through Application Programming Interfaces (APIs). These platforms enable banks to offer a wide range of insurance products directly to their customers, facilitating a streamlined and efficient process. Additionally, startups in bancassurance market are integrating insurance options directly into banking apps and financial services, allowing customers to buy insurance effortlessly within their banking experience, without the need to visit a separate website or physical location.
BIMA
BIMA is a leading InsurTech startup focused on providing mobile-based insurance and health services in emerging markets. The company partners with banks, mobile network operators, and various financial organisations to offer microinsurance solutions, improving insurance access for underserved communities.
Trov
Trov is an advanced on-demand insurance startup that focuses on flexible, mobile-oriented insurance solutions. By working with banks, Trov facilitates the direct delivery of insurance products through their digital platforms, allowing customers to quickly obtain and manage coverage for specific items or needs. This collaborative approach with financial institutions is expanding the scope of digital bancassurance services.
The companies provide a diverse array of insurance products and services, encompassing life, general, and speciality insurance. Growth in regions offers new opportunities to the bancassurance market players for expanding their services. Many companies are leveraging digital platforms to improve the efficiency of selling insurance through banking institutions. They are integrating insurance services into online banking applications and websites, offering smooth experience for customers when purchasing and managing their policies. Furthermore, companies are developing customised insurance products that meet the unique needs of bank customers. For example, they offer life insurance, health insurance, and home insurance as part of mortgage packages.
Zurich Insurance Company Ltd
The company has acquired a 51% stake in India’s Kotak Mahindra General Insurance. It has also launched next-generation global API marketplace Zurich exchange to boost its market reach.
ABN AMRO Bank N.V.
The company has launched an advanced digital platform for seamless insurance services. It has also formed alliances with leading insurance providers to meet the growing demand of the market.
The ING Group
ING Belgium and NN strengthen their collaboration by extending their bancassurance partnership until 2034. ING and AXA have further announced digital partnership to build a global insurance platform.
Barclays
Barclays and Blackstone Credit & Insurance agreed to the sale of credit card receivables. the company has also partnered with simply business to capture the market opportunities.
Other major players in the market are Wells Fargo, Lloyds Bank plc, Crédit Agricole Group, and HSBC Bank, among others.
August 2024
SBI General Insurance Company and HSBC India established a bancassurance partnership aimed at the distribution of non-life insurance products. This collaboration signifies a move towards offering accessible and comprehensive insurance solutions.
May 2024
Federal Bank, a leading private sector bank in India, has entered into a Bancassurance partnership with Tata AIA Life Insurance Co Ltd, a major player in the Indian life insurance market. This strategic collaboration is designed to offer Federal Bank's customers access to the wide range of insurance products provided by Tata AIA Life.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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The global bancassurance market reached a value of USD 1.57 billion in 2023.
The market is projected to grow at a CAGR of 7.5% between 2023 and 2032.
The market is estimated to witness healthy growth in the forecast period of 2024-2032 to reach about USD 3.03 billion by 2032.
The major drivers of the market include rising disposable incomes, increasing population, and increasing knowledge about the value of insurance among customers.
The implementation of stringent guidelines associated with wealth management products and rising living standards are expected to be key trends guiding the growth of the market.
The market is broken down into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa.
Life bancassurance and non-life bancassurance are the various products considered in the market report.
Pure distributor, exclusive partnership, financial holding, and joint venture are the different bancassurance models in the market.
The competitive landscape consists of Zurich Insurance Company Ltd, ABN AMRO Bank N.V., The ING Group, Barclays, Wells Fargo, Lloyds Bank plc, Crédit Agricole Group, and HSBC Bank, among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
REPORT FEATURES | DETAILS |
Base Year | 2023 |
Historical Period | 2018-2023 |
Forecast Period | 2024-2032 |
Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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Breakup by Product |
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Breakup by Bancassurance Models |
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Breakup by Region |
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Market Dynamics |
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Competitive Landscape |
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Companies Covered |
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Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
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United States (Head Office)
30 North Gould Street, Sheridan, WY 82801
+1-415-325-5166
Australia
63 Fiona Drive, Tamworth, NSW
+61-448-061-727
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-858-608-1494
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.
+63-287-899-028, +63-967-048-3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84-865-399-124
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