Heightened bancassurance demand in emerging markets to drive bank-insurer partnerships
Citibank seeks to sell access of its Asian Pacific branch network to life insurers, as life insurance premiums in Asia’s emerging markets expected to grow 9.8% in 2013. August 21, 2013 | Magessan RajStudies on the bancassurance industry in the Asia Pacific region show 45.8% of over 470 banking entities across eight countries (China, Hong Kong, India, Indonesia, Japan, South Korea, Thailand, and Vietnam) offer at least one form of investment–related life insurance or retirement savings product – a total of over 420 initiatives in both fields. Focusing on bancassurance distribution of such products by banks, the aggregate market for investment-related life insurances and retirement savings in all eight countries was worth around $710.6 billion in premiums over 2012. Japan alone accounted for 53.4% of gross written premiums and equivalent revenues in 2012, while Indonesia and Thailand were amongst the fastest-growing markets (between 2008-2012) with real inflation-adjusted compound annual growth rates of 11.5% and 11.4% respectively. While the magnitude and nature of bancassurance vary greatly from country to country, one thing seems certain – emerging markets in the Asia Pacific region offer the most potential for bancassurers, as a consequence of growth in the underlying insurance market and the fact that the share of the bancassurance channel is likely to increase. Barry Stowe, Prudential Asia CEO, echoed a similar sentiment, as he spoke on the group’s focus on the region, “Our growth strategy relies on the rising number of middle-class families in Asia that we can help to achieve long-term savings. Our fundamental tactic is to penetrate 13 Asian markets by a mix of insurance agency and bancassurance.” Prudential, Britain’s largest insurer by market value, acquired the life assurance unit of Thailand’s Thanachart Bank in 2011, and is on track to successfully doubling its 2009 profit from its Asian business in 2013. In line with this, Citigroup’s US-based retail banking arm Citibank aims to capitalise on insurers’ need for distribution networks in fast-growing markets, as news leaked that the bank sought ... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Asia Pacific, Bancassurance, Retail Bankingasia pac,Bancassurance,retail, Asia Pacific,Bancassurance,Retail Banking, Keywords:Finaccord, Citibank, Swiss Re, CIMB Aviva Malaysia, Sun Life Financial, AIA Group, ING Group Malaysia, Prudential, Thanachart Bank Finaccord, Citibank, Swiss Re, CIMB Aviva Malaysia, Sun Life Financial, AIA Group, ING Group Malaysia, Prudential, Thanachart Bank
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