Bancassurance in the Americas: Product and Partnership Strategies of the Region's Top 120 Retail Banking Groups

Transcription

1 Bancassurance in the Americas: Product and Partnership Strategies of the Region's Top 120 Retail Banking Groups Report Prospectus December 2016 Finaccord Ltd., 2016 Web: 1

2 Prospectus contents Page What is the research? Which banking groups are covered? Which insurance products are covered? How do country-specific retail banking units covered break down by region and group? What is the report structure? Output example: banking group involvement in bancassurance Output example: unweighted and weighted provider share of partnerships What are the key features of the research? How can the research be used? How can the Partner BASE be used? Who can use the research? What are some of the key findings? What is the cost and format? Country-specific reports about bancassurance How can the research be purchased? Finaccord Ltd., 2016 Web: info@finaccord.com 2

3 What is the research? Bancassurance in the Americas: Product and Partnership Strategies of the Region's Top 120 Retail Banking Groups is a report and interactive PartnerBASE dataset that provides a detailed overview of the bancassurance strategies of 120 of the leading consumer banking groups in the Americas (including North, Central and South America plus the Caribbean). In total, the research investigates 265 country-specific retail banking units since some of these groups are active in retail banking in multiple territories; for example, the study analyses the bancassurance operations of Santander in a total of nine countries. For each country-specific unit, it ascertains which of 24 different insurance types are offered, the operating model used where they are available (differentiating, for example, between external, joint venture and captive underwriting partners) and the identity of the insurance providers in each case. This dataset is then used to analyse the bancassurance strategies of each of the 120 retail banking groups. For example: it highlights which groups maintain alliances with insurance providers that can be considered strategic and which work more loosely with a range of providers; it shows whether internationally-diversified groups utilise the same insurance partners across multiple countries across North and / or Latin America or whether they formulate their approach at a country-specific level; and it demonstrates which groups are reliant wholly or mainly on captive or joint venture underwriters (continued overleaf). Finaccord Ltd., 2016 Web: info@finaccord.com 3

4 What is the research? (continued) The countries in the Americas across which the 265 retail banking units are researched are the 20 that follow: Argentina; Barbados; Bolivia; Brazil; Canada; Chile; Colombia; Costa Rica; Dominican Republic; Ecuador; Guatemala; Honduras; Mexico; Panama; Paraguay; Peru; Puerto Rico; Trinidad and Tobago; Uruguay; and the US. Finaccord Ltd., 2016 Web: 4

5 Which banking groups are covered? Alliance Data Card Services American Express ATB Financial BanBajío Banca Afirme Banco Agrario de Colombia Banco Ahorro Famsa Banco Alfa Banco Atlantida Banco Bolivariano Banco Caja Social Banco Consorcio Banco Credicoop Banco da Amazônia Banco Davivienda Banco de Brasília Banco de Córdoba Banco de Costa Rica Banco de Guayaquil Banco de la Ciudad Banco de la Nación (Argentina) Banco de la Nación (Perú) Banco del Pacífico Banco do Brasil Banco do Nordeste Banco Falabella (Falabella) Banco Ficohsa Banco General Banco GNB Sudameris Banco Hipotecario Banco Industrial Banco Mercantil do Brasil Banco Mercantil Santa Cruz Banco Nacional de Costa Rica Banco Nacional de Panamá Banco Pan Banco Popular (Costa Rica) Banco Popular (Dominican Republic) Banco Popular (Puerto Rico) Banco Popular (Spain) Banco Postal Banco Provincia Banco República Banco Ripley (Ripley) BancoEstado Banesco Bank of America Banorte BanPará BanReserva Banrisul Barclays BB&T BBVA Bci BMO Financial Group BNP Paribas Bradesco Caixa Econômica Federal Caja de Ahorros Caja Los Andes Caja Popular Mexicana Capital One CIBC Citigroup Citizens Financial Group Coast Capital Savings Comerica Credicorp Desjardins Group Discover Financial Services Fifth Third Bancorp Financiera Independencia First Republic Bank Global Bank Grupo Aval Grupo Bancolombia (Grupo Sura) Grupo Coomeva Grupo Galicia Grupo Interbank Grupo Macro Grupo Pichincha Grupo Safra Grupo Salinas Grupo Security Grupo Supervielle HSBC Huntington Bancshares ICBC Inbursa Itaú Unibanco Holding JP Morgan Chase KeyCorp La Araucana Los Héroes M&T Bank Midway Financeira (Guararapes) Mitsubishi UFJ Financial Group Multibank National Bank of Canada Navy Federal Credit Union Nuevo Banco de Santa Fe Pentagon Federal Credit Union PNC Financial Services Group RBC Regions Financial Corporation Republic Bank Santander Scotiabank Sicredi State Employees Credit Union SunTrust Banks Synchrony Financial TD Bank Group U.S. Bancorp USAA Vancity Votorantim Finanças Wells Fargo Zions Bancorporation Finaccord Ltd., 2016 Web: 5

6 Which insurance products are covered? For each of the 265 country-specific banking units across the 120 groups, the study provides information about provision rates, operating models and provider partnerships for the following 24 insurance types. Accident and health Accident Health / hospital cash Medical expenses Commercial Commercial liability Commercial motor Commercial property Other commercial non-life Professional indemnity Trade credit Creditor Creditor consumer finance Creditor credit cards Creditor mortgages Investment / retirement Investment-related life (not unit-linked) Investment-related life (unit-linked) Retirement savings Motor, home and travel Home Personal motor Travel Personal / identity protection ATM cash / handbag / mobile / wallet Card protection Identity protection Protection-related life Critical illness Income protection Risk life Finaccord Ltd., 2016 Web: info@finaccord.com 6

7 How do country-specific retail banking units covered break down by region and group? US, 47 Argentina, 23 Barbados, 4 Bolivia, 3 American Express, 21 Scotiabank, 20 Uruguay, 8 Trinidad and Tobago, 4 Puerto Rico, 5 Peru, 17 Brazil, 31 Canada, 23 Santander, 13 Itaú Unibanco Holding, 12 BBVA, 11 Paraguay, 4 Panama, 14 Chile, 20 others, 169 Citigroup, 10 Grupo Aval, 9 Mexico, 16 Honduras, 6 Guatemala, 3 Ecuador, 5 Dominican Republic, 4 Colombia, 21 Costa Rica, 8 Source: Finaccord PartnerBASE for the Top 120 Retail Banking Groups in the Americas Finaccord Ltd., 2016 Web: info@finaccord.com 7

8 What is the report structure? 0. Executive Summary: providing a concise evaluation of the principal findings of the report. 1. Introduction: offering rationale, description of methodology and some definitions. 2. Group Strategy Overview: this chapter uses data gathered across the 120 banking groups researched for this report in order to give a combined analysis of their bancassurance product and partner strategy in the following key areas: captive and joint venture underwriters; strategic and other partnerships with insurance groups; merger and acquisition activity related to bancassurance; insurance products offered. 3. Group Strategy Analysis: for each of the 120 banking groups in turn, the interactive PartnerBASE dataset provides an overview of their retail operations and a summary of their bancassurance strategy in the Americas including a table illustrating their involvement in bancassurance (see slide 9 for an example) and a pair of bar charts depicting unweighted and weighted provider share of partnerships for insurance products (see slide 10 for an example). Finaccord Ltd., 2016 Web: info@finaccord.com 8

9 Output example: banking group involvement in bancassurance Across 20 retail banking units in 12 countries serving close to 20 million customers, Scotiabank generated premiums of USD million from its captive and joint venture underwriters in 2015 Group overview Strategic partner(s) in Americas BNP Paribas Cardif, Chubb, MAPFRE Total assets worldwide (USD billion) Approximate number of customers in Americas (million) 18.8 Countries researched in Americas 12 Banking operations researched in Americas 20 Captive underwriter(s) in Americas? Yes JV underwriter(s) in Americas? Yes Premiums in Americas (captive / JV) (USD million) Unweighted product provision rates Accident and health insurance Creditor insurance Accident insurance 40.0% Creditor insurance - consumer finance 88.9% Health / hospital cash plans 35.0% Creditor insurance - credit cards 87.5% Medical expenses insurance 15.0% Creditor insurance - mortgages 84.6% Motor and household insurance Other personal non-life insurance Household insurance 40.0% ATM cash / handbag / mobile / wallet insurance 30.0% Personal motor insurance 40.0% Card protection insurance 45.0% Identity protection assistance / insurance 0.0% Protection-related life insurance Travel insurance 20.0% Critical illness insurance 40.0% Commercial non-life insurance Income protection insurance 25.0% Risk life insurance 45.0% Commercial liability insurance 25.0% Commercial motor insurance 15.0% Investment-related life / retirement savings Commercial property insurance 10.0% Professional indemnity insurance 5.0% Investment-related life insurance (not unit-linked) 0.0% Trade credit insurance 5.0% Investment-related life insurance (unit-linked) 0.0% Other commercial non-life insurance 30.0% Retirement savings 0.0% Source: Finaccord PartnerBASE for the Top 120 Retail Banking Groups in the Americas Finaccord Ltd., 2016 Web: info@finaccord.com 9

10 Output example: unweighted and weighted provider share of partnerships MAPFRE is Banco do Brasil s main bancassurance partner albeit some other groups also hold distribution partnerships for selected products Unweighted provider share of partnerships, % (UHCs) Weighted provider share of partnerships, % (UHCs) MAPFRE 52.8% MAPFRE 85.2% Grupo Sura 19.4% Bradesco 6.5% MetLife 13.9% Principal Financial Group 6.5% Assurant 5.6% Assurant <1% Bradesco 2.8% Grupo Sura <1% Principal Financial Group 2.8% MetLife <1% Swiss Medical Group 2.8% Swiss Medical Group <1% Source: Finaccord PartnerBASE for the Top 120 Retail Banking Groups in the Americas Finaccord Ltd., 2016 Web: info@finaccord.com 10

11 What are the key features of the research? Key features of this research include: a thorough overview of the bancassurance products and partnerships of a total of 265 consumer banking units owned by 120 of the leading retail banking groups in the Americas; for each banking group, an analysis of its insurance providers presented in both unweighted and weighted terms, thereby illustrating not only which partners are engaged in the most product initiatives with that group but which are likely to hold the most valuable relationships given the number of retail customers of the local country unit in question; the first ever ranking by premiums due to captive and / or joint venture insurance entities of banking groups across North and / or Latin America with data provided for over 50 groups with their own insurance underwriting subsidiaries; coverage of 24 distinct insurance types in seven broad categories (as shown on slide 5); availability of an accompanying interactive PartnerBASE dataset that details 1,660 distinct product initiatives and that is fully searchable and filterable, enabling provision and distribution patterns to be explored by banking brand, banking group, country and insurance type. Finaccord Ltd., 2016 Web: info@finaccord.com 11

12 How can the research be used? You may be able to use this report and the PartnerBASE dataset that accompanies it in one or more of the following ways: gain access to a unique information source that will allow you to arrive at a rapid understanding of the bancassurance strategies of 120 of the leading retail banking groups in the Americas; appreciate which insurance providers have been successful in establishing partnerships with these groups and which of those partnerships can be considered genuinely strategic; comprehend the magnitude of the captive and / or joint venture underwriting businesses of over 50 banking groups in the Americas that have their own insurance subsidiaries; evaluate opportunities to establish bancassurance partnerships across a wide range of insurance products (both life and non-life, personal and commercial) either in a single country or across multiple territories where banking groups are active; benefit from both the broad conclusions contained within the report and the product-specific detail in the PartnerBASE, meaning that this is a study that can be used for both strategic and tactical planning. Finaccord Ltd., 2016 Web: info@finaccord.com 12

13 How can the PartnerBASE be used? Select banking brand Filter by product Identify partners Banking group Country Banking brand Estimated number of retail customers CREDITOR INSURANCE - CONSUMER FINANCE Product offered? Operating model Partner(s) BBVA Colombia Bancamía 453 Yes Captive underwriter + external underwriter BBVA Seguros, MAPFRE BBVA Chile BBVA 847 Yes Captive underwriter BBVA Seguros BBVA Colombia BBVA 2,982 Yes Captive underwriter BBVA Seguros BBVA Argentina BBVA Banco Francés 1,500 Yes External underwriter Assurant BBVA Mexico BBVA Bancomer 11,100 Yes Captive underwriter Seguros BBVA Bancomer BBVA US BBVA Compass 7,000 No BBVA Peru BBVA Continental 1,997 Yes Captive underwriter RIMAC BBVA Paraguay BBVA Paraguay 209 No BBVA Uruguay BBVA Uruguay 318 Yes External underwriter MAPFRE BBVA Peru Financiera Confianza 96 Yes External underwriter MAPFRE BBVA Chile Fórum Servicios Financieros 170 Yes Multiple external underwriters ACE, Bci Seguros, BNP Paribas Cardif Filter by group Choose country View number of retail customers for each brand See operating model Finaccord Ltd., 2016 Web: info@finaccord.com 13

14 Who can use the research? 1. Banking groups: approaches to bancassurance vary enormously across the 120 banking groups investigated if your organisation is reviewing its own product or partnership strategy in this field then this study will help it to benchmark itself against its peer group in the Americas; 2. Insurance underwriters: this research provides a comprehensive guide to the bancassurance strategies, partnerships and individual product initiatives of 120 major retail banking groups, allowing you to formulate strategy at both regional and country-specific levels; 3. Management consultancies: if you are helping an insurance or banking group with its bancassurance strategy, then this research will summarise the overall landscape in the Americas, saving time and effort on researching the subject yourself; 4. Investment banks: depending upon the regulatory environment, their financial constraints and their strategic intent, banking groups regularly review whether they should develop, buy or divest insurance operations which, naturally, can generate work for the investment banking community. Finaccord Ltd., 2016 Web: info@finaccord.com 14

15 What are some of the key findings? 1) 53 out of the 120 retail banking groups investigated have at least one captive or joint venture insurance underwriter of which two own both types Captive underwriter, 46 none, 67 JV underwriter, 5 Captive + JV underwriter, 2 Source: Finaccord PartnerBASE for the Top 120 Retail Banking Groups in the Americas Finaccord Ltd., 2016 Web: info@finaccord.com 15

16 What are some of the key findings? (cont.) 2) Across the 120 banking groups surveyed, MAPFRE, BNP Paribas Cardif and Chubb hold the most bancassurance relationships of any type although the latter has the most joint venture or strategic partnerships Insurance group JV partnerships Strategic partnerships Non-strategic partnerships Total partnerships MAPFRE BNP Paribas Cardif Chubb Liberty Mutual Zurich Assurant Grupo Sura SulAmérica Icatu MetLife AIG Allianz Source: Finaccord PartnerBASE for the Top 120 Retail Banking Groups in the Americas Finaccord Ltd., 2016 Web: info@finaccord.com 16

17 What are some of the key findings? (cont.) 3) Key findings from the executive summary include: across the banking groups for which data is available, total premiums written or earned by captives and joint ventures amounted to more than USD 75 billion in 2015 with the five largest bancassurers alone accounting for over USD 46 billion of this figure; with regards to the insurance products offered across the 265 country-specific banking units of the 120 banking groups researched in the region, creditor insurance related to consumer finance recorded the highest provision rate, at 73.9% followed by mortgage-related creditor insurance (69.7%), creditor insurance linked to credit cards (59.2%), risk life insurance (53.6%) and household insurance (45.7%); at the other end of the spectrum, the lowest rates of availability were reported for identity protection insurance / assistance and trade credit insurance (at just 2.3% each); on average, banks located in Latin America offered 7.96 insurance products while the equivalent data points for those based in Canada, the Caribbean and the US were 4.01, 1.38 and 2.69, respectively, thereby illustrating the generally higher impact of bancassurance in Latin America. Finaccord Ltd., 2016 Web: info@finaccord.com 17

18 What is the cost and format? Bancassurance in the Americas: Product and Partnership Strategies of the Region's Top 120 Retail Banking Groups is available as a standard PDF document. The PartnerBASE dataset that accompanies it at no further charge is in Excel format. Costs for this research set and other related, multi-country bancassurance titles being made available during 2017 are as follows: REPORT PRICE * Global Bancassurance: Product and Partnership Strategies of the World s Top 500 Retail Banking Groups Global Bancassurance: Product and Partnership Strategies of the World s Top 150 Retail Banking Groups Bancassurance in Africa and the Middle East: Product and Partnership Strategies of the Region s Top 120 Retail Banking Groups Bancassurance in the Americas: Product and Partnership Strategies of the Region s Top 120 Retail Banking Groups Bancassurance in the Asia-Pacific Region and Australasia: Product and Partnership Strategies of the Region s Top 150 Retail Banking Groups Bancassurance in Europe: Product and Partnership Strategies of the Region s Top 150 Retail Banking Groups Global Bancassurance: Product and Partnership Strategies in Accident and Health Insurance of the World s Top 500 Retail Banking Groups Global Bancassurance: Product and Partnership Strategies in Commercial Non-Life Insurance of the World s Top 500 Retail Banking Groups Global Bancassurance: Product and Partnership Strategies in Investment-Related Life Insurance and Retirement Savings of the World s Top 500 Retail Banking Groups Global Bancassurance: Product and Partnership Strategies in Motor, Household and Travel Insurance of the World s Top 500 Retail Banking Groups Global Bancassurance: Product and Partnership Strategies in Personal and Identity Protection Insurance of the World s Top 500 Retail Banking Groups Global Bancassurance: Product and Partnership Strategies in Protection-Related Life Insurance of the World s Top 500 Retail Banking Groups GBP 7,995 GBP 3,995 GBP 1,995 GBP 1,995 GBP 2,995 GBP 2,995 GBP 2,495 GBP 2,495 GBP 2,495 GBP 2,495 GBP 2,495 GBP 2,495 * Titles focused on bancassurance in single countries are as shown overleaf for UK-based clients, VAT at the prevailing rate will be added to the basic price costs quoted are for a single site user licence only for a corporate user licence, please see the next slide for further details invoices can be paid in EUR, at the prevailing exchange rate, if preferred. Finaccord Ltd., 2016 Web: info@finaccord.com 18

19 Country-specific reports about bancassurance Separate reports about bancassurance in different countries are available as listed below. These cover investment-related life insurance and retirement savings, protection-related life insurance, accident and health insurance, motor and household insurance, and creditor insurance linked to mortgages, consumer finance and credit cards. BANCASSURANCE IN... Belgium GBP 995 Malaysia GBP 995 Brazil GBP 995 Mexico GBP 995 Chile GBP 995 Philippines GBP 995 China GBP 995 Poland GBP 995 France GBP 995 Russia GBP 995 Hong Kong GBP 995 South Korea GBP 995 India GBP 995 Spain GBP 995 Indonesia GBP 995 Thailand GBP 995 Italy GBP 995 Vietnam GBP 995 Japan GBP 995 * For UK-based clients, VAT at the prevailing rate will be added to the basic price. Costs quoted are for a single site user licence only. For a corporate user licence, please see the final slide for further details. Invoices can be paid in EUR or USD, at the prevailing exchange rate, if preferred. For acquisition of multiple reports, please contact Finaccord discounts may be available. Finaccord Ltd., 2016 Web: info@finaccord.com 19

20 How can the research be purchased? Simple. Just go to the relevant area of the Finaccord web site available at and fill in the online order form, clearly indicating: report required type of corporate user licence, if required * billing name address and address purchase order number, if applicable Please allow up to one working day for the delivery of electronic copy by . * For the corporate user licence please choose one of the following options: 1. One office, one country: no supplement over and above basic cost of reports ordered 2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered 3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered 4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers. Finaccord Ltd., 2016 Web: info@finaccord.com 20