Bancassurance Market Size, Share & Trends Analysis Report By Product Type, By Model Type, By Region, And Segment Forecasts, 2021 To 2028

The global bancassurance market is expected to witness significant growth over the forecast period. The widespread consolidation in the banking industry and the digital strategies being pursued aggressively by banks are primarily expected to drive the growth of the market. The increasing proportion of incremental deposits various private banks are raising, and subsequently, the credible solutions and plans with better services they are offering to their customers are also expected to contribute to the growth of the market.

Bancassurance Market Segmentation

Bancassurance envisages an arrangement between a bank and an insurance company, which allows the insurance company to sell its policies and services to the bank's customers. Such an arrangement can benefit both banks and insurance companies. The arrangement allows banks to offer various insurance products, such as mortgages, annuities, and health and life insurance, thereby widening their market reach while offering a high return of equity and effectively enhancing their financial portfolio. Banks can ultimately rake extra revenues and augment their profits by selling insurance policies. On the other hand, insurance companies can effectively expand their customer base without investing in deploying additional sales force or paying commission to brokers and agents. Given the increasing aging population across the globe, and subsequently, the growing demand for lucrative health and life insurance and retirement plans, bancassurance can potentially serve as a one-stop-shop solution, particularly for elderly customers looking forward to availing themselves convenient financial services.

The continued introduction of mobile-based services by various banks across the globe, which is allowing them to improve their digital sales, bodes well for the growth of the market. The increasing middle-class population, the shifting purchasing patterns of customers, and the rollout of high-speed internet networks are some of the other factors that are expected to play a vital role in driving the growth of the market over the forecast period.

Venture capital firms are focusing aggressively on investing in technology companies that help banks in transforming their business operations. For instance, in May 2021, Amount, Inc., a company that provides technology to financial institutions and banks, announced that it had raised USD 99 million in a Series D funding round at a valuation of just over USD 1 billion. Westcap Group, LLC led the funding round while Barclays Principal Investments, Invus, Goldman Sachs, and Hanaco Ventures participated in it. Such venture capital investments are expected to open new opportunities for the growth of the market over the forecast period.

The key players in the bancassurance market include ABN AMRO Bank N.V.; American Express Company; Banco Bradesco SA; Banco Santander, S.A.; BNP Paribas; Citigroup, Inc.; and HSBC Bank USA, N.A., among others. The market is getting highly competitive as the key market players are focusing on creating awareness about the bancassurance industry. As such, the prominent market players are hosting seminars and exhibitions to highlight their collaboration with banks and provide the related information of insurance products to the banks’ account holders. Market players are also focusing on providing information on insurance policies to the banks’ account holders through various other channels, including SMS, bank applications, and emails.