Global Bancassurance Market Increasing Demand, Growth Analysis and Outlook 2018-2023

The global bancassurance market is envisaged to witness a healthy growth in the near future due to various favourable factors such as benefits for both insurance companies and banks, increasing awareness about bancassurance, ageing population, rising private banking sector and thriving developing economies.

IMARC Group’s latest report, titled “Bancassurance Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023”, estimates that the global bancassurance market reached a value of more than US$ 1,100 Billion in 2017, registering a CAGR of 6.4% during 2010-2017. Bancassurance refers to the partnership between a bank and an insurance company, wherein the insurance company is enabled to sell its products by using bank as a distribution channel. This collaboration helps the bank in earning a revenue, apart from the interest, also known as fee-based income. Whereas, the insurance company gets to expand its consumer-base without rising its broker commissions and sales force. With bancassurance, these institutions offer a wide range of banking as well as investment products and services to the consumers, such as health insurance along with mortgage, life insurance, and annuities. These products tend to complement the existing bank products which further leads to additional selling opportunities for both the insurance company and bank.

Selling insurance through banks is a cost-effective affair than approaching customers through an agent. Agent’s involvement increases labour cost for the insurance company, thereby decreasing its profit margins. As a result, banking sector has appeared to be a potential distribution channel for insurance products.

Report this Page