The global bancassurance market revenue was around US$ 1,039.9 billion in 2023 and is estimated to reach US$ 1,977.0 billion by 2032, growing at a compound annual growth rate (CAGR) of 7.4% during the forecast period from 2024 to 2032.
Bancassurance is an agreement between an insurance company and a bank letting the insurance company sell its products to the client base of the bank. This collaboration arrangement can be advantageous for both companies. Banks earn more revenue by selling insurance products, and insurance companies develop their customer bases without growing their sales force.
Factors Influencing Market Growth
- The retention rate is higher as customers are dedicated to their banks and buy the policies as it is good for them as per the financial advisory provided to them by their banks. Therefore, this factor propels the growth of the bancassurance market.
- The rising number of customers in banks mostly in the growing countries delivers a major customer base for the bancassurance market, which propels the growth of the market.
- The sale of policies relies upon the footfall of customers in a bank, if the customer footfall in a bank unit is low, the sale of insurance policies in that department is also lower in number as corresponded to other branches where the footfall is more elevated. Thus, this is a major limitation for the growth of the market.
- The rising demand for insurance services and products among customers and the growing awareness of insurance policies will offer major lucrative opportunities for the growth of the market.
Impact of COVID-19
The impact of the COVID-19 pandemic had a moderate influence on the global bancassurance market. The rapid adoption of digitalization in the banking sector during COVID-19 helped to increase the bancassurance market. However, bancassurance providers also encountered some market challenges, complicated subject matter, strict regulations, a lack of consumer awareness and continuously growing technology.
Regional Analysis
In 2023, Europe dominated the global bancassurance market in terms of revenue. This is attributed to the substantial growth in the financial, banking, services, and insurance sectors. Along with this, numerous key players across the region are also engaging in acquisitions and merger activities as well as collaborations to form multiple growth opportunities in the bancassurance market.
Also, the Asia-Pacific region is anticipated to grow at a significant growth rate during the forecast period. This is attributed to the heightened internet penetration and technology advancements influencing customer purchase patterns and habits, the valuation of the market is anticipated to grow gradually.
Leading Companies
The leading prominent companies profiled in the global bancassurance market are: -
- American Express Company
- ABN AMRO Bank N.V.
- BNP Paribas S.A
- Barclays PLC
- Citigroup
- INC
- HSBC Group
- State Bank of India
- Scotiabank
- Standard Chartered
- Wells Fargo
- Other prominent key players
Segmentation Outline
The global bancassurance market segmentation focuses on Insurance Type, Model Type, End User, and Region.
Segmentation based on Insurance Type
- Life Insurance
- Non-Life Insurance
Segmentation based on Model Type
- Pure Distributor Model
- Strategic Alliance Model
- Joint Venture Model
- Financial Holding
- Others
Segmentation based on End User
- Personal
- Business
Segmentation based on Region
- North America
- The U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest Of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
