Insurance companies that want to expand internationally face substantial distribution challenges: how do they establish their brand and how do they reach new customers? One way for them to try to solve these problems is through creating sales partnerships with leading banks, which gives them access to a new customer base using the bank's own brand. According to new research about global bancassurance strategies published by Finaccord, BNP Paribas Cardif is the insurance group holding the most bancassurance partnerships among the world's 500 largest retail banking groups, followed by AXA and MetLife.
Based on an investigation into the consumer banking operations of the top 500 retail banking groups worldwide (spanning over 100 countries), Finaccord's research established that BNP Paribas Cardif was being utilised as an insurance partner for at least one bancassurance product by a total of 81 of the 500 banking groups. The France-based insurance group was followed by AXA with a total of 78 partnerships, and MetLife with a total of 75 agreements. Overall, among the 20 most prominent insurance groups in terms of their number of relationships with the top 500 banking groups, ten originated from Europe, five from North America and five from the Asia-Pacific region.
"Competition among international insurance groups for bancassurance partnerships has been intense in recent years", comments Stefan Wagner, a Consultant at Finaccord. "This is a consequence of the high or rising importance of bancassurance as a distribution channel in a number of insurance markets including China, Indonesia and Thailand in the Asia-Pacific region, Poland and Spain in Europe, and Brazil and Mexico in Latin America. In addition, many banks have expanded substantially their offering not only into new product areas but also into alternative sales channels, including digital distribution, which has created more partnership opportunities for insurers."
Finaccord's research also classified insurance groups' partnerships with the 500 banking groups according to whether they were set up either as joint ventures, as strategic, long-term relationships, or as less substantial, ad hoc distribution partnerships. With regards to joint ventures and strategic agreements among the 500 banking groups, AXA is the insurance group with the most such arrangements at 15 (breaking down between eight joint ventures and seven strategic relationships). It is followed by BNP Paribas Cardif with ten, Allianz with nine, Aviva and MAPFRE with eight each, and MetLife with seven.
"While the total number of partnerships is certainly a helpful measure to identify key insurance groups in the global bancassurance market, it is also important to look at joint venture and strategic partnerships as these commonly have a long-term focus and often generate substantially more revenue than looser distribution agreements", concludes Stefan Wagner. "As such, international insurance groups are increasingly seeking these types of deal. For example, major agreements established during 2017 included those of Allianz with Standard Chartered and of Chubb with DBS, both for non-life insurance and spanning multiple countries in the Asia-Pacific region."
- Standard Chartered Bank And Allianz Announce 15-Year General Insurance Partnership In Asia
- AXA To Acquire Aid-Call Limited
- AXA To Sell Its Romanian Operations To Vienna Insurance Group
- Jumia And AXA Partner To Provide Insurance Products And Services To African Customers
- Travel Insurance Claims Soar As Families Hit The Slopes
- AXA Publishes Latest Insurance Claims Stats
- Manulife China Bank Life Assurance Corporation to Begin Offering Bancassurance Products to China Bank Savings Clients
- AXA PPP Healthcare Introduces New Cost-Effective Health Cover
- MetLife Announces First Quarter 2015 Results
- UK Gaps In ISA knowledge Revealed
Latest from iPMI Magazine
- Chinese Travel Expansion: International Assistance Group Welcomes HealthLink As Core Partner
- Real-Life Scenarios Prepare CEGA Staff For Winter Sports Travel Insurance Claims
- AnaCap Signs Exclusive Arrangement To Exit French Insurance Broker AOG
- International Health Insurer Allianz Care Announces Appointments For Qatar And Germany
- Starr Insurance Companies Expands Aviation Insurance Operations To Brazil