Bancassurance in the Asia-Pacific Region: Replacing the Agency Distribution Model

by Prathima Rajan, November 11, 2010
Vendor Reviews
Asia-Pacific

Abstract

Bancassurance is growing in many Asian markets, buoyed by deregulation of the banking sector and insurance companies intending to optimize distribution via banks. On the local level, the bancassurance business has evolved in different ways in different countries.

Bancassurance in the Asia-Pacific region is growing quickly, despite the dominance of agents in both life and nonlife insurance. In a new report, Bancassurance in the Asia-Pacific Region: Replacing the Agency Distribution Model, Celent analyses the bancassurance channel in major Asia-Pacific markets to understand the growth of this channel and its scope.

 

“Despite differences in various APAC countries, life insurance products are best suited to being sold via bancassurance,” says Celent Analyst Prathima Rajan, author of the report. “Nevertheless, eventually bancassurance should grow in the P&C segment as well. In the most mature markets, such as South Korea, property insurance sold via bancassurance already accounts for 5%.”

This report talks about popular products sold via banks in the Asia-Pacific region. The report captures some of the most common business models in bancassurance, such as distributor referrals (retail and corporate), strategic alliances, and joint ventures, along with the involvement of banks at various levels.

The report also discusses some examples of joint ventures, product development and innovation, distribution, and financial services group models that can help pave the way for market entrants or highlight best practices for established bancassurance companies.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Erica Ferguson
eferguson@celent.com
Tel.: +1 617 262 8225

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

3

Introduction

5

Growth of Bancassurance in the Asia-Pacific Region

7

A Different Bancassurance Ecosystem in Each Country

13

 

China

13

 

Hong Kong

16

 

Taiwan

18

 

Singapore

19

 

Malaysia

21

 

South Korea

23

 

India

26

Bancassurance Business Models

29

Conclusions

38

Leveraging Celent’s Expertise

40

 

Support for Financial Institutions

40

 

Support for Vendors

40

Related Celent Research

41

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