Bancassurance Models Around the World

Transcription

1 Bancassurance Models Global Bancassurance Strategies Around the World Presentation at the 8 th Annual Bancassurance Conference Vienna, October 3 rd 4 th 2013 Finaccord Ltd., 2013 Web: info@finaccord.com 1

2 Agenda Key factors that shape bancassurance strategies The meta level: strategies used by the world's 125 largest retail banking groups The country level: differences across global bancassurance markets Future outlook Finaccord Ltd., 2013 Web: 2

3 Key Factors that Shape Bancassurance Strategies 1. Meta level: Regulation Forced divestment Bancassurance Strategies 2. Country level: Regulation Market characteristics Finaccord Ltd., 2013 Web: 3

4 Key Factors that Shape Bancassurance Strategies 1. Meta level New regulation: Forced divestment: New capital requirements under the Basel III Accords Several banking groups have been forced to divest assets 2. Country level Regulation: Market characteristics: Mediation laws, insurance shareholding of banks, product regulation Maturity, insurance penetration Finaccord Ltd., 2013 Web: 4

5 Bancassurance Strategies on a Meta Level Segmentation of 125 retail banking groups between those with captive underwriters, those with joint venture underwriters and those with both captive and joint venture underwriters, 2013 None, 34.4% Captive, 41.6% Joint venture, 10.4% Captive and joint venture, 13.6% Finaccord Ltd., 2013 Web: info@finaccord.com 5

6 Bancassurance Strategies on a Meta Level: Captives and JVs Ranking of banking groups by value of premiums of captive and joint venture underwriters, 2012 Rank Group Premiums (USD billion) 1 Crédit Agricole ING Group BNP Paribas Bradesco Crédit Mutuel Lloyds Banking Group Société Générale HSBC NongHyup Bank Intesa Sanpaolo 7.28 Total of above Other retail banking groups in world's top Grand total Finaccord Ltd., 2013 Web: info@finaccord.com 6

7 Bancassurance Strategies on a Meta Level: Divestments Examples: ING Group: RBS Group: HSBC: Santander: Needs to divest its insurance subsidiaries as a requirement of the EC One condition of the bail-out has been the divestment of the Direct Line Group In 2011, the group announced a large-scale retrenchment of insurance operations The group has shifted its strategy from using captive to joint venture underwriters Finaccord Ltd., 2013 Web: info@finaccord.com 7

8 Bancassurance Strategies on a Meta Level: Strategic Partnerships Segmentation of 125 retail banking groups between those with and those without one or more strategic insurance partners, 2013 No strategic insurance partner, 58.4% One or more strategic insurance partners, 41.6% Finaccord Ltd., 2013 Web: info@finaccord.com 8

9 Bancassurance Strategies on a Meta Level: Strategic Partnerships Unweighted provider share of strategic bancassurance partnerships, 2013 Aviva, 8.5% Allianz, 5.6% Prudential, 5.6% Zurich, 5.6% other, 57.7% Ageas, 4.2% AXA, 4.2% MAPFRE, 4.2% CNP Assurances, 4.2% Finaccord Ltd., 2013 Web: info@finaccord.com 9

10 Bancassurance Strategies on a Country Level Estimated distribution share of bancassurance in life insurance, % Minimum % % range trigger 80% 60% 40% 20% 0% BR ES FR IT KR HK ID CN TH MX DE IN UK JP CL VN Finaccord Ltd., 2013 Web: info@finaccord.com 10

11 Bancassurance Strategies on a Country Level 'The Southern Europe model' (operating models, life and non-life insurance, weighted), 2011/2012 External underwriter Multiple external underwriters Captive underwriter JV underwriter Other tricker Spain Italy Brazil Mexico 0% 20% 40% 60% 80% 100% Finaccord Ltd., 2013 Web: info@finaccord.com 11

12 Bancassurance Strategies on a Country Level 'The multiple underwriters model' (operating models, life and non-life insurance, weighted), 2012 External underwriter Multiple external underwriters Captive underwriter JV underwriter Other tricker China Japan South Korea 0% 20% 40% 60% 80% 100% Finaccord Ltd., 2013 Web: info@finaccord.com 12

13 Bancassurance Strategies on a Country Level Asia displays various market structures (operating models, life and non-life insurance, weighted), 2012 External underwriter Multiple external underwriters Captive underwriter JV underwriter Other tricker Hong Kong India Indonesia Thailand Vietnam 0% 20% 40% 60% 80% 100% Finaccord Ltd., 2013 Web: info@finaccord.com 13

14 Future Outlook on the Meta Level: Asia's Rise Segmentation of the 15 largest retail banking groups in China between those with a captive, those with a joint venture and those with both a captive and joint venture, 2013 Captive, 13.3% None, 40.0% Captive and joint venture, 13.3% Estimated total customer base: 1.3 billion Joint venture, 33.3% Finaccord Ltd., 2013 Web: info@finaccord.com 14

15 Future Outlook on the Meta Level: Europe's Fall? High growth countries: Latin American countries + Asian emerging countries Low growth countries: Northern European countries + developed Asian countries + North America Problematic countries: Southern European countries + UK Opportunities: African / Middle Eastern countries Finaccord Ltd., 2013 Web: info@finaccord.com 15

16 Any questions? Sources and related Finaccord publications: Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups Creditor Insurance in Latin America Creditor Insurance in Northern, Central and Eastern Europe Creditor Insurance in Southern and Western Europe Life Bancassurance in the Asia-Pacific Region: Investment-Related Life Insurance and Retirement Savings Life Bancassurance in the Asia-Pacific Region: Protection-Related Life Insurance Life Bancassurance in Europe: Investment-Related Life Insurance and Retirement Savings Life Bancassurance in Europe: Protection-Related Life Insurance Life Bancassurance in Latin America: Protection-Related Life Insurance Non-Life Bancassurance in Europe: Accident and Health Insurance Non-Life Bancassurance in Europe: Motor and Household Insurance Bancassurance country reports (covering 30 different countries in the Asia-Pacific region, Europe and Latin America) Finaccord Ltd., 2013 Web: