NEW YORK, May 13, 2013 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:
Bancassurance in India: Life, Non-Life and Creditor Insurance
http://www.reportlinker.com/p01119525/Bancassurance-in-India-Life-Non-Life-and-Creditor-Insurance.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Life_Insurance
Bancassurance in India: Life, Non-Life and Creditor Insurance is a study and related PartnerBASE dataset examining the provision of life, non-life and creditor insurance by banks and other lending institutions in India.
Drawing on the results of a survey of 72 banking entities in India, the study verifies the percentage of organisations investigated that distribute each of the following 13 types of insurance: accident insurance, creditor insurance related to consumer finance, creditor insurance related to credit cards, creditor insurance related to mortgages, critical illness insurance, health / hospital cash plans, household insurance, income protection insurance, investment-related life insurance, medical expenses insurance, personal motor insurance, retirement savings, and risk life insurance.
For those banking entities that are active in one or more of these fields, the reports ascertain the operating models that they use to source the type of insurance in question (e.g. external, joint venture or captive underwriters) and the identity of the specific providers used. This information is then displayed in terms of the weighted share of partnerships of these providers, which takes into account the number of retail customers of the partner banking entities, thus highlighting those insurance companies that hold the distribution relationships that offer the most potential.
You may be able to use this report, plus the PartnerBASE dataset and market data annexes that accompany it, in one or more of the following ways:
- gain access to a source of information that provides a comprehensive overview of the provision of personal insurance products by all significant banking entities in India;
- identify partnership opportunities for the same personal insurance products that may arise either because a banking institution is not currently active or because there is scope for replacing an existing initiative;
- understand which underwriters and other product providers have been successful in establishing distribution relationships with the most important banking entities in India;
- assess how the evolving regulatory environment may open up or block opportunities for your organisation to sell through the bank distribution channel;
- appreciate the magnitude of the opportunity to sell personal insurance products through banks and other lending institutions in India.
Overall, in a market characterised by the involvement of over 20 joint venture underwriters, across the 72 banks and other lending institutions researched in India, Finaccord's research identified over 500 bancassurance distribution initiatives for the various types of insurance investigated.
TABLE OF CONTENTS
0.0 EXECUTIVE SUMMARY 1
1.0 INTRODUCTION 3
What is this report about? 3
Distribution partnerships with banks and other lending institutions constitute the focus of this report 3
Rationale 3
Bancassurance is the most rapidly growing distribution channel in India 3
Methodology 4
Survey of banks and other lending institutions 4
Market data 4
Definitions 5
Investment-related life insurance 5
Retirement savings 5
Risk life insurance 5
Critical illness insurance 5
Income protection insurance 6
Accident insurance 6
Health / hospital cash plans 6
Medical expenses insurance 6
Personal motor insurance 6
Household insurance 6
Creditor insurance 7
Mortgages, consumer finance and credit cards 7
Weighted provider share of partnerships 7
Operating models 8
Abbreviations and exchange rates 9
PartnerBASE™ and market data annexe 9
Finaccord 9
2.0 MARKET BACKGROUND 12
Banks and other lending institutions covered 12
Economic background 12
India's economy has performed very strongly in recent years 12
and was relatively unaffected by the global financial crisis 13
although it still faces many significant problems 13
In the World Bank's Ease of Doing Business Index, India is ranked only 132nd in the world 14
Introduction to the banking sector 14
In terms of its total number of retail customers State Bank of India leads the market 14
in a sector in which government-owned banks account for a majority of branches 14
Substantial swathes of the Indian population remain unbanked 15
The RBI follows a policy that generally encourages banking sector consolidation 15
with a number of mergers and acquisitions in evidence in recent years 15
Introduction to bancassurance 16
India's insurance market has been subject to deregulation since 2000 16
Unusually, the distribution share of banks is higher in non-life insurance than in life insurance 16
although is growing in both fields as the traditional agency model comes under pressure 16
Most insurance companies use bank distribution as a part of a multi-channel strategy 17
State Bank of India has maintained a joint venture with BNP Paribas Cardif since 2000 17
…with over 20 other joint ventures having been established since then 17
The bancassurance channel is characterised by relatively strict regulation in India… 18
…with banks not being permitted to tie up with any more than one life and one non-life insurer 18
Regulations governing bancassurance partnerships are likely to change in the near future 18
3.0 INVESTMENT-RELATED LIFE INSURANCE AND RETIREMENT SAVINGS 20
Insurance market size and growth 20
The total market grew by 8.0% in nominal terms between 2008 and 2012 20
Banks commonly offer a wide range of investment-related life insurance products 20
Distribution share of banks 22
Bancassurers accounted for around 12% of the total life insurance market in 2012 22
Bancassurance provision rates, operating models and partnerships 22
Investment-related life insurance 22
Investment-related life insurance is promoted by three quarters of banking organisations researched 22
SBI Life is the leading provider by weighted share of partnerships 22
followed by the government-owned LIC through relationships with 10 different banks 22
Star Union Dai-ichi Life benefits from its joint venture partnerships with two banks 22
albeit many other joint ventures are also active in this field 23
17 of the banking organisations investigated do not distribute investment-related life insurance 23
Retirement savings 25
The provision rate for retirement savings products is similar to that for investment-related life insurance… 25
and the partnerships in place are also very comparable 25
Performance of key bancassurance underwriters 27
Around one quarter of the Indian life insurance market is controlled by joint ventures 27
4.0 PROTECTION-RELATED LIFE INSURANCE 28
Insurance market size and growth 28
The market for protection-related life insurance declined in value between 2008 and 2012 28
Critical illness insurance is often offered as a rider rather than as a stand-alone product 28
A small proportion of protection-related life insurance is due to creditor insurance 28
Distribution share of banks 29
Bancassurance provision rates, operating models and partnerships 30
Risk life insurance 30
Over three quarters of banking organisations researched offer risk life insurance… 30
with SBI Life and LIC again ranked most highly by weighted share of partnerships 30
MetLife India benefits from a key partnership with Punjab National Bank 30
Critical illness insurance 32
Relatively few banking institutions in India sell critical illness insurance as a stand-alone policy 32
Thanks to two partnerships, Reliance General is ranked first by weighted share of partnerships 32
followed by HDFC ERGO 32
and ICICI Lombard 32
Eight banking organisations utilise external underwriters of critical illness cover 32
Income protection insurance 34
Income protection insurance is rarely marketed by banking organisations in India 34
Performance of key bancassurance underwriters 34
5.0 ACCIDENT AND HEALTH INSURANCE 36
Insurance market size and growth 36
The market for accident and health insurance grew to a value of USD 3.1 billion in 2012 36
Accident and health insurance policies are underwritten by both life and non-life insurance companies 36
Distribution share of banks 37
Bancassurance provision rates, operating models and partnerships 38
Accident insurance 38
Stand-alone accident insurance is quite commonly sold by banking organisations in India 38
Government-owned underwriters lead the market by weighted share of partnerships 38
Universal Sompo is a joint venture underwriter co-owned by four different companies 38
35 banking institutions have no apparent arrangement for selling stand-alone accident insurance 38
Medical expenses insurance 40
Medical expenses insurance is also commonly sold by banking organisations in India 40
Three government-owned underwriters are ranked most highly by weighted share of partnerships 40
although Bajaj Allianz lays claims to a total of 11 partnerships in this field 40
26 of the banking organisations investigated do not distribute medical expenses insurance 40
Health / hospital cash plans 42
23 bancassurance initiatives are identifiable in the field of health and hospital cash plans 42
Tata AIG is ranked fourth by weighted share of partnerships thanks to its link with Axis Bank 42
Performance of key bancassurance underwriters 44
Joint venture underwriters enjoy a strong position in the (non-life) accident insurance market 44
…but have fallen back somewhat in the (non-life) health insurance sector 44
6.0 PERSONAL MOTOR AND HOUSEHOLD INSURANCE 46
Insurance market size and growth 46
Personal motor insurance premiums increased by over 15% per year in real terms between 2008 and 2012 46
Distribution share of banks 47
Bancassurance provision rates, operating models and partnerships 48
Personal motor insurance 48
Most banking organisations surveyed have an arrangement for selling personal motor insurance 48
By weighted share of partnerships SBI General and Oriental Insurance lead the market 48
Third-ranked Bajaj Allianz has established a total of 13 distribution agreements in this field 48
Household insurance 51
Provision rates for household insurance are even higher than those for personal motor cover 51
…and the two providers ranked first and second are exactly the same 51
Performance of key bancassurance underwriters 53
Bank-affiliated joint venture underwriters control close to 45% of the total motor insurance market 53
and over 30% of the total fire insurance sector 53
7.0 CREDITOR INSURANCE 55
Consumer lending market size and growth 55
Mortgage lending 55
Residential mortgages in India grew at a real compound annual rate of only 3.9% between 2008 and 2012 55
Non-mortgage lending 56
The value of non-mortgage consumer lending balances is slightly below that of mortgage balances 56
Credit and other pay later cards 57
The credit card market peaked in 2008 and has since slipped by almost 30% 57
Creditor insurance provision rates, operating models and partnerships 58
Creditor insurance linked to mortgages 58
All mortgage lenders in India sell related creditor insurance 58
with SBI Life emerging as the leader by weighted share of partnerships 58
Once again, joint ventures involving overseas insurance groups have a strong position in the market 59
Max Life is a non-bank joint venture involving Max and Japan's Mitsui Sumitomo 59
Creditor insurance linked to consumer finance 61
Over 80% of entities offering consumer credit have a scheme in place for loan payment protection cover 61
The main partnerships in this field are identical to those for mortgage-related creditor insurance 61
12 lending institutions have no apparent scheme for in place for this type of creditor insurance 61
Creditor insurance linked to credit cards 63
Over 20 schemes for card-related creditor insurance are up and running in India 63
Once again, joint venture underwriters affiliated with banks dominate the market 63
Creditor insurance risk coverage 65
Some policies offer cover for temporary incapacity but none incorporate cover for unemployment 65
Creditor insurance market size, growth and forecast 66
The overall market for all forms of creditor insurance in India is advancing rapidly 66
with demand for policies linked to mortgages and consumer credit likely to be most robust 66
LIST OF GRAPHICS / TABLES
0.0 EXECUTIVE SUMMARY 1
Overview of bancassurance provision rates for different types of insurance in India, 2012 2
1.0 INTRODUCTION 3
Banks and other lending institutions in India contacted by Finaccord, segmented by type 4
2.0 MARKET BACKGROUND 12
Key economic indicators for India, 2012 14
3.0 INVESTMENT-RELATED LIFE INSURANCE AND RETIREMENT SAVINGS 20
Gross written premiums for investment-related life insurance and retirement savings in India, 2008 to 2012 21
Gross written premiums for investment-related life insurance and retirement savings in India, 2008 to 2012 (data) 21
Bancassurance provision of investment-related life insurance in India, 2012: provision rate, operating models and weighted provider share of partnerships 24
Bancassurance provision of retirement savings in India, 2012: provision rate, operating models and weighted provider share of partnerships 26
Market share in life insurance of key bancassurance underwriters in India, 2007 to 2011 27
4.0 PROTECTION-RELATED LIFE INSURANCE 28
Gross written premiums for protection-related life insurance in India, 2008 to 2012 29
Gross written premiums for protection-related life insurance in India, 2008 to 2012 (data) 29
Bancassurance provision of risk life insurance in India, 2012: provision rate, operating models and weighted provider share of partnerships 31
Bancassurance provision of critical illness insurance in India, 2012: provision rate, operating models and weighted provider share of partnerships 33
Bancassurance provision of income protection insurance in India, 2012: provision rate, operating models and weighted provider share of partnerships 35
5.0 ACCIDENT AND HEALTH INSURANCE 36
Gross written premiums for accident and health insurance in India, 2008 to 2012 37
Gross written premiums for accident and health insurance in India, 2008 to 2012 (data) 37
Bancassurance provision of accident insurance in India, 2012: provision rate, operating models and weighted provider share of partnerships 39
Bancassurance provision of medical expenses insurance in India, 2012: provision rate, operating models and weighted provider share of partnerships 41
Bancassurance provision of health / hospital cash plans in India, 2012: provision rate, operating models and weighted provider share of partnerships 43
Market share in accident insurance of key non-life bancassurance underwriters in India, 2010 to 2011 44
Market share in health insurance of key non-life bancassurance underwriters in India, 2008 to 2011 45
6.0 PERSONAL MOTOR AND HOUSEHOLD INSURANCE 46
Gross written premiums for personal motor and household insurance in India, 2008 to 2012 47
Gross written premiums for personal motor and household insurance in India, 2008 to 2012 (data) 47
Bancassurance provision of personal motor insurance in India, 2012: provision rate, operating models and weighted provider share of partnerships 50
Bancassurance provision of household insurance in India, 2012: provision rate, operating models and weighted provider share of partnerships 52
Market share in total motor insurance of key bancassurance underwriters in India, 2007 to 2011 53
Market share in total property insurance of key bancassurance underwriters in India, 2007 to 2011 54
7.0 CREDITOR INSURANCE 55
Residential mortgage lending balances outstanding in India (absolute and per capita), 2008 to 2012 55
Consumer non-mortgage lending balances outstanding in India (absolute and per capita), 2008 to 2012 56
Credit and other pay later cards issued and per capita in India, 2008 to 2012 57
Key data points for the consumer lending market in India, 2008 to 2012 58
Provision of creditor insurance linked to mortgages in India, 2012: provision rate, operating models and weighted provider share of partnerships 60
Provision of creditor insurance linked to consumer finance in India, 2012: provision rate, operating models and weighted provider share of partnerships 62
Provision of creditor insurance linked to credit cards in India, 2012: provision rate, operating models and weighted provider share of partnerships 64
Risk coverage of creditor insurance policies in India, segmented by type of underlying product, 2012 65
Creditor insurance gross written premiums in India, segmented by policy type, 2008, 2012 and 2016 66
Creditor insurance gross written premiums in India, segmented by cover type, 2008, 2012 and 2016 67
Creditor insurance gross written premiums in India, segmented by policy and cover type, 2008, 2012 and 2016 (data) 67To order this report:
Life_Insurance Industry: Bancassurance in India: Life, Non-Life and Creditor Insurance
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