Banccassurance

By : Anshika 20bcom35
Aakash Kaushik 20bcom29
Introduction
• Bancassurance is an arrangement between a bank and an insurance company
allowing the insurance company to sell its products to the bank's client base.
This partnership arrangement can be profitable for both companies. Banks earn
additional revenue by selling insurance products, and insurance companies
expand their customer bases without increasing their sales force.
• The insurance company benefits from increased sales and a broader client base
without having to expand its sales force.
• The bank benefits by receiving additional revenue from the sale of insurance
products.
Bancassurance Industry Growth

• The bancassurance market is growing worldwide, particularly for life

insurance and especially in the Asia-Pacific region. The research and
consulting firm IMARC Group says the global bancassurance market
reached a value of $1.268 trillion in 2021. IMARC expects the market to
continue to grow at a compound annual growth rate of 5.9% and attain a
value of $1.802 trillion by 2027. A major factor driving the trend: a
growing "geriatric population with greater need for health and life
insurance as well as retirement plans."
 Global Bancassurance Market Drivers:
•According to a report by the World Health Organization, the proportion of the world's
population over 60 years will nearly double from 12% to 22% between 2015 to 2050. As the
aging population has a greater need for health and life insurance as well as retirement product
plans, this global demographic shift will positively impact the bancassurance industry.
•Increasing economic growth in developing economies is further contributing to the growth of
the market. For instance, the MetLife India Insurance Company in India entered into a strategic
partnership with Punjab National Bank in 2011. MetLife got access to over 78 million bank
customers in India, whereas Punjab National Bank acquired 30% stakes in the company.
•Bancassurance is becoming an important factor for the overall growth of financial services due
to consolidation in the sector. With rising internet penetration and technological
advancements influencing consumer behaviors and their purchasing patterns, the market is
expected to witness a continuous rise in its valuation.