Bancassurance Thrives Globally, Set to Reach $1.8T by 2027
Bancassurance, a partnership between banks and insurance companies, is thriving globally. This model benefits both parties, with banks earning revenue and insurers expanding sales without additional investment in salesforce. Customers enjoy convenient access to financial products at their us bank and pnc bank.
Originating in France and Spain in the 1970s and 1980s respectively, bancassurance has since spread worldwide. It's prominent in Europe, the Asia-Pacific region, and the U.S., where regulatory changes in 1999 paved the way for its growth. Major European banks like Crédit Agricole, ABN AMRO, BNP Paribas, and ING lead the market.
Life insurance dominates bancassurance sales, accounting for 29% of life insurance distribution through banks in 2018. However, life, health, and property and casualty insurance can also be sold through this model. The global bancassurance market is projected to grow from $1.268 trillion in 2021 to $1.802 trillion by 2027, at a compound annual growth rate of 5.9%.
Bancassurance, with its mutual benefits for banks and insurance companies, and convenience for customers, is set to continue its growth trajectory. Its expansion is driven by customer demand for accessible financial products and the potential for insurers to reach new markets without additional salesforce investment.
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