Global Bancassurance Market Report and Forecast 2024-2032

Global Bancassurance Market Size

The global bancassurance market value reached around USD 1.57 billion in the year 2023. The market is further expected to grow at a CAGR of 7.5% between 2024 and 2032 to reach a value of USD 3.03 billion by 2032.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Global Bancassurance Market Growth

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 bancassurance industry.

Global Bancassurance Market Analysis

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. 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.

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. The industry is also likely to increase with the increased internet penetration as well as technological innovations affecting consumers' behaviour and purchase habits.

Global Bancassurance Industry Outlook

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 bancassurance industry revenue and improving customer satisfaction and loyalty.

According to Invest India, the life insurance sector's penetration has increased from 2.2% in FY 2002 to 3.2% in FY 2022. 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.

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%. 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.

Bancassurance provides a comprehensive solution by integrating banking and insurance services, which boosts customer convenience and satisfaction, thereby accelerating the bancassurance industry growth.

• Banks can leverage existing customer relationships to cross-sell insurance products, increasing market penetration and revenue.

• Banks' extensive branch networks provide broad access to insurance products, reaching a wider audience.

Merging banking and insurance operations can be challenging and may require significant operational adjustments.

• Strict regulations in different regions can complicate compliance and operational flexibility.

• Customers may have reservations about purchasing insurance from their bank, potentially impacting sales.

Growth in developing regions offers new opportunities to the bancassurance market for expanding services.

• Advancements in technology enable innovative insurance solutions and streamlined processes. 

• Growing awareness and understanding of financial products drive demand for integrated services.

High competition from specialized insurers and digital platforms can affect bancassurance market share and profitability.

• Economic downturns may reduce consumer spending on insurance products.

• Evolving regulatory landscapes can pose challenges to maintaining compliance and adapting business models.

Key Players in the Global Bancassurance Market and Their Key Initiatives

Zurich Insurance Company Ltd

• Acquired a 51% stake in India’s Kotak Mahindra General Insurance. 

• Launched next-generation global API marketplace Zurich exchange. 

ABN AMRO Bank N.V.

• Launched an advanced digital platform for seamless insurance services.

• Formed alliances with leading insurance providers to meet the growing demand of the bancassurance market.

The ING Group

• ING Belgium and NN strengthen their collaboration by extending their bancassurance partnership until 2034.

• ING and AXA announce digital partnership to build a global insurance platform.

Barclays

• Barclays and Blackstone Credit & Insurance Agree to Sale of Credit Card Receivables. 

• Partnered with Simply Business to capture the bancassurance market opportunities.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Global Bancassurance Industry Segmentation

“Global Bancassurance Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product

• Life Bancassurance

• Non-Life Bancassurance

Market Breakup by Bancassurance Models

• Pure Distributor

• Exclusive Partnership

• Financial Holding

• Joint Venture

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Bancassurance Market Share

Developed countries 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 market demand. Additionally, the sector is experiencing rapid expansion due to an increasing awareness of the importance of insurance.

The bancassurance market growth is expected to be driven by emerging markets, particularly China and India. Moreover, raising living standards and the growing middle- and high-income classes in developed regions simultaneously are leading to the growth of the global bancassurance market.

Leading Companies in the Bancassurance Market

The companies provide a diverse array of insurance products and services, encompassing life, general, and speciality insurance.

• Zurich Insurance Company Ltd 

• ABN AMRO Bank N.V. 

• The ING Group  

• Barclays 

• Wells Fargo 

• Lloyds Bank plc 

• Crédit Agricole Group 

• HSBC Bank

Key Highlights of the Report

Bancassurance Market Report Snapshots

Bancassurance Market Size

Bancassurance Market Growth

Bancassurance Market Analysis

Bancassurance Market Share

Bancassurance Companies