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