Life Bancassurance in the Asia-Pacific Region: Protection-Related Life Insurance

USA - English

• USA - English

London (PRWEB) December 05, 2013 -- What is the research?

Finaccord’s report titled Life Bancassurance in the Asia-Pacific Region: Protection-Related Life Insurance offers uniquely detailed insights into the distribution by banks and other lending institutions of risk life, critical illness and income protection insurance across eight countries: China, Hong Kong, India, Indonesia, Japan, South Korea, Thailand and Vietnam.

Drawing on a survey of over 470 banking entities, the study finds that 45.0% offer at least one of the types of protection-related life insurance researched, giving a total of 390 initiatives in the three fields combined. Hence, given that the aggregate market for protection-related life insurance across the eight countries, excluding creditor cover, is worth around USD 84.8 billion, it is clear that banks and other lending institutions can intermediate a significant volume of business in this sector.

In addition to identifying the schemes for distribution of protection-related life insurance through the bancassurance channel, the research also classifies and analyses these according to the operating model used, distinguishing, for example, between captive, joint venture and external underwriters. Furthermore, it also calculates the weighted share of partnerships of the underwriters and other product providers involved, thereby illustrating not only which competitors hold which partnerships but also which competitors hold the most significant distribution deals.

What methodology has been used?

The majority of Finaccord’s survey of the provision of protection-related life insurance by banks and other lending institutions in the Asia-Pacific region was carried out on a rolling basis between July 2012 and February 2013, and focused on all significant banking entities in each country. The research embraced the following information:
•whether risk life insurance, critical illness insurance and income protection insurance are available to customers;
•if so, how… through an external underwriter, multiple external underwriters, an external broker, a captive broker, a joint venture underwriter, a captive underwriter or a combination of these approaches?
•if so, who are the product providers?
Combined with Finaccord’s unique and proprietary quantification of the size and growth of the market for protection-related life insurance in each of the eight countries, with accompanying commentaries concerning the constituent product segments, this is the most thorough and comprehensive research into this subject ever published.

What is the report structure?

Executive Summary: providing a concise evaluation of the principal findings of the report.
Introduction: offering rationale, description of methodology and definitions.

Regional Overview: this includes quantification of the size and growth of protection-related life insurance across the eight countries, an analysis of the rates of provision of risk life, critical illness and income protection insurance by banking entities, an investigation into the operating models used, and a unique and valuable snapshot of the weighted share of partnerships for these products across the region as a whole. This latter analysis indicates which providers of protection-related life insurance have established the distribution partnerships with the greatest sales potential.

Specific country chapters (eight): an in-depth investigation into the distribution of risk life, critical illness and income protection insurance in each country including an introduction to the banking sector, national market size and growth data for the category of protection-related life insurance as a whole, commentary concerning the overall importance of bancassurance as a distribution channel, analyses of operating models used by banks and other lending institutions that are active in these fields, computation of the weighted share of bancassurance partnerships among product providers in these countries, and data illustrating the size and growth of key bancassurance competitors.

What are the key features of the research?

Key features of this report include:
•analysis of a combined total of 390 partnerships for the distribution of risk life, critical illness and income protection insurance through banking entities across eight Asia-Pacific countries;
•identification of the providers used by the 215 banks and other lending institutions that are active in one or more of these areas;
•a unique computation of the importance of bancassurance partnerships for every country and for the Asia-Pacific region as a whole: each partnership is weighted by the number of retail customers that each bank has, to illustrate which competitors hold the most significant relationships;
•discussion of the importance of bancassurance as a channel in each country, with data for the market shares of leading captives, joint ventures and other key bancassurance underwriters;
•quantification of the size, segmentation and growth of gross written premiums for protection-related life insurance in each country across a five-year time frame.

How can the research be used?

You may be able to use this report plus the PartnerBASE™ dataset and market data annexe 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 protection-related life insurance by a majority of significant banking entities in these eight countries in the Asia-Pacific region;
•identify partnership opportunities for protection-related life insurance that may arise either because a banking institution is not currently active or because there is scope for replacing an existing initiative;
•understand which product providers have been successful in establishing distribution relationships with the most important banking entities;
•assess the background to the most significant bancassurance deals, including those that involve major international competitors such as AEGON, Ageas, AIA, AIG, Allianz, Aviva, AXA, BNP Paribas, Cigna, Dai-ichi Life, HSBC, ING, Manulife, MassMutual, MetLife, MS&AD, Prudential, Standard Life, Sun Life Financial and Zurich.

Who can use the research?

1.Insurance companies: this study is a uniquely comprehensive guide to a major segment within the bancassurance market of eight Asia-Pacific countries that can be used to identity partnership opportunities and to monitor competitor activity;
2.Banks and other lending institutions: the research will help banking entities to understand how their bancassurance strategy compares to that of other comparable institutions both in their domestic market and across other key Asia-Pacific countries;
3.Management consultancies: are you helping an insurance company or bank with its bancassurance strategy in the specific field of protection-related life insurance? Understand the current status of bank distribution of risk life, critical illness and income protection insurance in the Asia-Pacific region, saving time and effort on researching the subject yourself;
4.Investment banks and private equity companies: with some banking and insurance institutions under financial pressure, this research may be useful to understanding where there is scope for them to divest captive or joint venture providers in order to raise capital.

What are some of the key findings?

Key findings from the executive summary include:
•the approximate value of the market for protection-related life insurance across the eight countries investigated, excluding creditor cover, was USD 84.8 billion in gross written premiums in 2012, within which South Korea was the largest market accounting for USD 26.9 billion of the total;
•Hong Kong, Thailand and Indonesia were the fastest-growing markets between 2008 and 2012 in real terms, with compound annual growth rates of 13.9%, 11.9%, and 11.3% respectively, once inflation has been discounted;
•an analysis of the weighted share of ultimate holding companies (i.e. groups) with bancassurance partnerships for protection-related life insurance indicates that China Life is the leading group by this measure across the eight Asia-Pacific countries under consideration, with ING the leader among multi-national insurers;
•however, the international insurance group with bancassurance relationships for these products across the largest number of countries among those researched is Aviva, which was found to have established deals with banks in six of the eight countries.
0.0 EXECUTIVE SUMMARY 1
The total market is worth almost USD 93 billion in gross written premiums across eight countries 2
... within which non-creditor policies account for over 90% of the total value 2
Real inflation-adjusted growth rates are highest in Hong Kong, Indonesia and Thailand 4
Bancassurers’ distribution share of protection-related life insurance exceeds 30% only in five countries 5
45% of entities surveyed have a partnership for at least one type of protection-related life policy 6
The largest banks in China, Japan and South Korea typically collaborate with multiple partners 6
Aviva is active in this area of the bancassurance market in six of the eight countries researched 8
1.0 INTRODUCTION 9
What is this report about? 9
Distribution partnerships with banks and other lending institutions constitute the focus of this report 9
Rationale 9
Nearly half of banking organisations surveyed sell at least one type of the products covered by this report 9
Methodology 10
Survey of banks and other lending institutions 10
Market data 12
Definitions 12
Risk life insurance 12
Critical illness insurance 12
Income protection insurance 13
Weighted provider share of partnerships 13
Operating models 13
Abbreviations and exchange rates 14
PartnerBASE™ and market data annexe 14
Finaccord 15
2.0 ASIA-PACIFIC OVERVIEW 17
Introduction 17
Market analysis – protection-related life insurance 17
The combined market across eight countries grew by 5.3% in nominal terms between 2008 and 2012 17
In real terms, the market of Hong Kong showed the most rapid growth between 2008 and 2012 19
Non-creditor insurance makes up more than 90% of total protection-related life insurance 20
Per capita premiums for protection-related life insurance vary widely across the eight countries 23
Bancassurance analysis 24
Provision rates and operating models for risk life insurance 24
Banking entities in India were found to offer stand-alone risk life insurance most frequently 24
Many partnerships are set up in conjunction with a single external underwriter 24
...though the utilisation of multiple partners is preferred in three major countries 24
When viewed on a weighted basis, the use of multiple external partners becomes more prevalent 27
Provision rates and operating models for critical illness insurance 30
The provision rate for stand-alone critical illness insurance is highest in Japan 30
Provision rates and operating models for income protection insurance 36
Income protection insurance is fairly widespread in Japan but a niche product type elsewhere 36
Where offered by banks, it is usually sourced from a single, external underwriting partner 36
…and use of this operating model is even more pronounced on a weighted basis 39
Distribution share of bancassurance for protection-related life insurance 41
Finaccord’s analysis illustrates the influence of bancassurance on a standardised basis 41
Banks have made least progress as distributors of protection-related life insurance in Vietnam 4
Presence of international groups in the Asia-Pacific bancassurance market 43
Insurance groups operating in China and South Korea are especially visible in the partnership analysis 43
…with several international providers visible among the top eight groups 43
Aviva is present in six of the eight bancassurance markets under consideration 45
... with AIA, Allianz, MetLife and Prudential each present in five 45
3.0 CHINA 46
Banks and other lending institutions covered 46
Introduction to the banking sector 46
Agricultural Bank of China lays claim to the highest number of retail customers in China… 46
…while ICBC is the largest bank by assets 47
The joint-stock commercial banks provide a full range of banking services 47
…while many city commercial banks have expanded into other regions 48
The rural commercial banks were created to improve access to credit for China’s village-dwellers 48
Foreign banks in China suffer from a lack of funding from retail deposits 49
Doubts about the level of bad loans that may be lurking in the economy hang over the banking sector 49
Introduction to bancassurance 49
Bancassurance in China has grown extremely rapidly in recent years 49
…but new regulations introduced in 2010 seem to have disrupted the expansion 50
…while further regulatory notices issued in 2011 are meant to cut down on bribery and mis-selling 50
Relationships between banks and insurers have often been weak and sometimes short-lived 51
…as joint ventures between banks and insurers appeared late and remain relatively rare 51
…although there are signs that large financial conglomerates may develop in the foreseeable future 51
Market size and growth of protection-related life insurance 52
Protection-related life insurance grew by a compound average rate of 16.4% between 2008 and 2012 52
The market for term life insurance is traditionally limited but now being boosted by micro-insurance schemes 53
Critical illness insurance is an important product in China and often helps to meet medical expenses 54
Distribution share of banks 54
Bancassurance sales for life insurance have soared but new rules have restrained further growth 54
Bancassurance provision rates, operating models and partnerships 55
Risk life insurance 55
More than a third of Chinese banks promote some form of risk life insurance 55
China Life is the leading provider by weighted share of partnerships 55
…while Ping An can also count on a large number of national agreements 55
Taikang can also count on a large number of national agreements 56
Allianz China Life is collaborating with two of the ‘big four’ banks and three foreign lenders 56
The Shanghai branches of Bank of China collaborate with Manulife-Sinochem Life 57
CPIC has a large number of partnerships with smaller banks in China 57
…while Sun Life Everbright has struck agreements with four medium-sized lenders 57
While agents provide the main channel for CITIC Prudential, its sales through banks have also grown 58
China Post Life can sell its policies through the Postal Savings Bank of China and the postal network 58
Heng An Standard Life was slated for sale to Bank of China in 2010 but the deal broke down 58
China Construction Bank’s partnerships tend to be mostly determined at the local or provincial level 59
Critical illness insurance 61
Bancassurance agreements for critical illness insurance normally involve a single external underwriter 61
Taiping gains access to rural citizens through its alliance with the Postal Savings Bank of China 61
Income protection insurance 63
Chinese banks are not involved in the marketing of income protection insurance 63
Performance of key bancassurance underwriters 63
HSBC Life’s income from bancassurance sales accounts for 85% of its entire business… 63
…while ING-BoB Life signed its first agreement with Bank of Beijing in Tianjin in June 2011 63
4.0 HONG KONG 64
Banks and other lending institutions covered 64
Economic background 64
The service industry dominates Hong Kong's economy 64
…and in terms of ease of doing business the SAR ranks second in the world by one measure 64
Introduction to the banking sector 65
Hong Kong's banking sector was liberalised in the early years of the 21st century 65
While the Bank of China is the largest bank in terms of its number of retail customers 66
…HSBC is the largest group in the SAR by the same measure 66
The banking sector is highly consolidated 66
Introduction to bancassurance 67
Bancassurance in Hong Kong is well-developed, in particular for life and health insurance products 67
A large number of banks have set up captive insurance subsidiaries 67
The Hong Kong Monetary Authority might tighten bancassurance regulations 67
Market size and growth of protection-related life insurance 67
Protection-related life insurance represents only a small part of the total life insurance market 67
Critical illness insurance is often bundled with protection-related life insurance products 68
Distribution share of banks 69
Banks play a significant role in the distribution of protection-related life insurance 69
Bancassurance provision rates, operating models and partnerships 69
Risk life insurance 69
Nearly two thirds of Hong Kong's banking institutions promote some form of risk life insurance 69
In terms of weighted partnerships, BOCG Life also leads the market for risk life insurance 69
Hong Kong Life was set up as a joint venture between four banks and one insurance provider 70
… while ING Life and Public Bank entered into a strategic partnership in 2007 70
Aviva's partnership with DBS Bank is part of a pan-Asian alliance 70
Critical illness insurance 72
Critical illness insurance is often bundled with other types of cover 72
BOCG Insurance offers critical illness cover as part of a comprehensive medical protection plan 72
China Construction Bank and QBE have set up a joint venture underwriter 72
Income protection insurance 74
Only three banking institutions are offering this form of cover in Hong Kong 74
Performance of key bancassurance underwriters 76
The two largest life insurance providers in Hong Kong are owned by banks 76
5.0 INDIA 77
Banks and other lending institutions covered 77
Economic background 77
India's economy has performed very strongly in recent years 77
... and was relatively unaffected by the global financial crisis 78
... although it still faces many significant problems 78
In the World Bank's Ease of Doing Business Index, India is ranked only 132nd in the world 78
Introduction to the banking sector 79
In terms of its total number of retail customers State Bank of India leads the market 79
... in a sector in which government-owned banks account for a majority of branches 79
Substantial swathes of the Indian population remain unbanked 80
The RBI follows a policy that generally encourages banking sector consolidation 80
... with a number of mergers and acquisitions in evidence in recent years 80
Introduction to bancassurance 81
India's insurance market has been subject to deregulation since 2000 81
Unusually, the distribution share of banks is higher in non-life insurance than in life insurance 81
... although is growing in both fields as the traditional agency model comes under pressure 81
Most insurance companies use bank distribution as a part of a multi-channel strategy 81
State Bank of India has maintained a joint venture with BNP Paribas Cardif since 2000 82
…with over 20 other joint ventures having been established since then 82
The bancassurance channel is characterised by relatively strict regulation in India… 83
…with banks not being permitted to tie up with any more than one life and one non-life insurer 83
Regulations governing bancassurance partnerships are likely to change in the near future 83
Market size and growth of protection-related life insurance 84
The market for protection-related life insurance declined in value between 2008 and 2012 84
Critical illness insurance is often offered as a rider rather than as a stand-alone product 84
A small proportion of protection-related life insurance is due to creditor insurance 84
Distribution share of banks 85
Bancassurers accounted for around 12% of the total life insurance market in 2012 85
Bancassurance provision rates, operating models and partnerships 86
Risk life insurance 86
Over three quarters of banking organisations researched offer risk life insurance… 86
... with SBI Life and LIC again ranked most highly by weighted share of partnerships 86
Star Union Dai-ichi Life benefits from its joint venture partnerships with two banks 86
... albeit many other joint ventures are also active in this field 86
MetLife India benefits from a key partnership with Punjab National Bank 87
Critical illness insurance 89
Relatively few banking institutions in India sell critical illness insurance as a stand-alone policy 89
Thanks to two partnerships, Reliance General is ranked first by weighted share of partnerships 89
... followed by HDFC ERGO 89
... and ICICI Lombard 89
Eight banking organisations utilise external underwriters of critical illness cover 89
Income protection insurance 91
Income protection insurance is rarely marketed by banking organisations in India 91
Performance of key bancassurance underwriters 91
Around one quarter of the Indian life insurance market is controlled by joint ventures 91
6.0 INDONESIA 93
Banks and other lending institutions covered 93
Economic background 93
Indonesia's economy is the largest in Southeast Asia… 93
The Indonesian economy swiftly recovered from the Asian financial crisis… 93
…and is well positioned for further growth 94
In the World Bank's Ease of Doing Business Index, Indonesia is ranked only 128th in the world 94
Introduction to the banking sector 95
In terms of its total number of retail customers Bank Rakyat Indonesia leads the market… 95
…and Bank Tabungan Negara is the largest mortgage lender 95
Government-owned banks have a strong position in the market 95
A number of foreign entities are active in the market 95
DBS bid for Bank Danamon at the beginning of 2012 96
Introduction to bancassurance 96
Bancassurance accounts for around 41% of life insurance premiums in 2012… 96
…with many banks having changed their bancassurance strategies in recent years… 97
…and have set up captive insurance underwriters, mainly in the life insurance segment 97
A number of banks have set up joint venture underwriters with foreign insurance companies… 97
...and competition among underwriters for bancassurance partnerships is fierce 97
Banks are offering a range of sharia-compliant insurance products 98
Regulations divide bancassurance in three different business categories… 98
…and have a strong impact on the structure of the market 99
Market size and growth of protection-related life insurance 99
Protection-related life insurance grew by 21.0% per annum in real terms between 2008 and 2012 99
... albeit a substantial proportion of this is probably due to creditor insurance 99
Distribution share of banks 100
Bancassurance is estimated to account for over 41% of life insurance premiums 100
Bancassurance provision rates, operating models and partnerships 101
Risk life insurance 101
Around one third of banking organisations offer risk life insurance 101
... with BRIngin Life ranked first by weighted share of partnerships 101
AXA Mandiri is the most prominent joint venture underwriter 101
Mega Life is an important player in the life segment 101
10 banking organisations have established external partnerships in this field 102
Critical illness insurance 104
Relatively few banking institutions in Indonesia sell critical illness insurance… 104
…and two providers affiliated with banks predominate the market 104
Chartis is the most prominent external underwriter in this field 104
Income protection insurance 104
Income protection insurance is not commonly marketed by banking organisations in Indonesia 104
Performance of key bancassurance underwriters 107
The combined market share of key bancassurers peaked in 2009 107
7.0 JAPAN 108
Banks and other lending institutions covered 108
Economic background 108
Japan has the third-largest economy in the world in terms of national economic output 108
The country's economy was hit by the global financial crisis in 2008 and by the earthquake in 2011 109
The service sector accounts for around 75% of the total economy 109
Government debt and negative population growth are the main challenges for the future 109
In the World Bank's Ease of Doing Business Index Japan is ranked 20th in the world 109
Introduction to the banking sector 110
The banking sector is dominated by three major groups… 110
…albeit regional banks and Shinkin banks also play an important role in the market 110
The penetration of foreign-owned banking institutions is very limited 111
The banking sector has seen major structural changes since the early years of the 21st century 111
Introduction to bancassurance 111
The sale of insurance products by banking institutions was fully deregulated only in 2007… 111
…with only a few restrictions now remaining 112
Banks usually act as insurance agencies that collaborate with a large number of underwriters… 112
…some of which are investing strongly to increase their sales via the bancassurance channel 112
The importance of the bancassurance channel is increasing most in the life segment… 113
…and bancassurance is generally less important in the non-life insurance sector 113
Online sales of insurance remain comparatively low in Japan 113
Market size and growth of protection-related life insurance 114
The market for protection-related life insurance increased in value between 2008 and 2012 114
Risk life policies are often bundled with other forms of protection 114
Cancer insurance is by far the most widespread type of critical illness insurance 114
Distribution share of banks 116
The bancassurance distribution channel is likely to have advanced in recent years 116
Bancassurance provision rates, operating models and partnerships 116
Risk life insurance 116
Around half of Japan's banking institutions promote some form of risk life insurance 116
Aflac has seen soaring sales through the bancassurance channel in recent years 116
Japan Post Insurance is the main captive underwriters active in the market 117
Manulife has distribution partnerships with over 40 financial institutions across Japan 117
Critical illness insurance 119
Critical illness insurance is often bundled with other types of cover 119
Market leader Aflac has a particular focus on cancer insurance policies 119
Tokio Marine & Nichido Anshin Life claims partnerships with a total of 17 banking organisations 119
MassMutual Life has a sole partnership with Mizuho Bank 119
Income protection insurance 121
Income protection insurance is less commonly offered by banking organisations in Japan 121
In terms of weighted partnerships, NKSJ Himawari Life leads the market 121
Lifenet, which was only launched in 2008, benefits from its ties with credit card issuers 121
AXA has set up Nextia Life to compete in the online insurance market 121Orix Life is the only captive underwriter found to be active in this market segment 121
Performance of key bancassurance underwriters 123
Captive underwriters are not a common feature of the market 123
8.0 SOUTH KOREA 124
Banks and other lending institutions covered 124
Economic background 124
South Korea benefits from an export-driven economic strategy 124
…and has demonstrated a high level of financial resilience in recent years 125
In the World Bank's Ease of Doing Business Index, South Korea is ranked eighth in the world 125
Introduction to the banking sector 125
In terms of number of retail customers Kookmin Bank leads the market 125
…which is highly concentrated with four predominant financial groups 126
The penetration of foreign banks is relatively low 126
Co-operative banks in South Korea have a fairly large customer base 126
…and insurance companies are also engaged in consumer lending 126
Many of South Korea's savings banks have been wound up or taken over 127
Introduction to bancassurance 127
Bancassurance in South Korea is well-developed, in particular for life insurance products… 127
…and the market features a number of providers that specialise in bancassurance 128
The distribution of insurance products by banks is heavily regulated 128
...aiming to prevent excessively strong ties between banks and insurance providers 128
… meaning that captive and joint venture underwriters are therefore less prominent in the market 128
Market size and growth of protection-related life insurance 129
Protection-related life insurance decreased in value between 2008 and 2012 129
Critical illness cover is often bundled with medical expenses insurance products 129
Distribution share of banks 130
Banks play a significant role in the distribution of protection-related life insurance 130
Bancassurance provision rates, operating models and partnerships 131
Risk life insurance 131
Around one third of South Korea's banking institutions promote some form of risk life insurance 131
Aviva and Woori Financial formed a joint venture underwriter in 2008 131
…and ING plans to sell its South Korean business in 2012 131
Heungkuk Life specialises in the bancassurance distribution channel 131
30 banking organisations do not distribute risk life insurance 132
Critical illness insurance 134
Over 40% of banking institutions surveyed are distributors of critical illness insurance 134
AIA Life has partnerships in place with nine banking organisations 134
Income protection insurance 134
Performance of key bancassurance underwriters 136
The importance of the bancassurance channel has grown significantly for major insurance companies… 136
… and dedicated bancassurance underwriters have expanded their market share since 2007 136
9.0 THAILAND 138
Banks and other lending institutions covered 138
Economic background 138
Thailand benefits from an open and export-driven economy 138
... although economic success is not shared equally across the country 139
In the Ease of Doing Business ranking, Thailand's economy is ranked 17th in the world 139
Introduction to the banking sector 140
In terms of its number of retail customers, Bangkok Bank leads the market 140
Government-owned institutions play an important role in the mortgage lending sector 140
The presence of foreign-owned banks in the market is comparatively limited 140
... with several overseas entities having exited the market in recent years 141
Introduction to bancassurance 141
Bancassurance in is well-developed especially for life insurance products 141
A number of banks have divested stakes in insurance companies in recent years 141
…although Siam Commercial Bank has taken full control of its joint venture 142
... leaving only two bona fide joint venture insurers in the bancassurance sector 142
Many insurance companies sell through banks as a part of a multi-channel strategy 142
... although those with the most exposure to bancassurance have tended to grow most rapidly 143
The Thai bancassurance market is subject to relatively 'light touch' regulation 143
Market size and growth of protection-related life insurance 143
Protection-related life insurance premiums increased strongly between 2008 and 2012 143
Distribution share of banks 145
Bancassurance accounts for over 35% of total life insurance premiums 145
Bancassurance provision rates, operating models and partnerships 145
Risk life insurance 145
Nearly 40% of Thailand's banking institutions promote some form of risk life insurance 145
... with partnerships spread across ten different providers 145
26 banking organisations have no visible arrangement in place for risk life insurance 146
Critical illness insurance 148
Only a limited number of institutions surveyed are distributors of critical illness insurance… 148
…with familiar underwriters leading the market in terms of partnership share 148
Income protection insurance 148
Income protection insurance has yet to establish itself as a core bancassurance product 148
Performance of key bancassurance underwriters 151
The combined market share of key bancassurers increased consistently between 2007 and 2011 151
10.0 VIETNAM 152
Banks and other lending institutions covered 152
Economic background 152
Political and economic reforms have transformed Vietnam in recent years 152
… although state-owned enterprises still produce about 40% of national GDP 153
High inflation is one the country's main economic concerns 153
…although it also faces other structural problems 153
In the Index of Economic Freedom, Vietnam's is ranked only 136th in the world 153
Introduction to the banking sector 154
Four of Vietnam's five largest banks by number of customers are state-owned 154
... with Agribank leading the market by this measure 154
Indigenous banks control around 90% of the retail lending sector 154
... although this market remains very small by international standards 155
Several Japanese banks have displayed an interest in Vietnam's banking sector 155
Introduction to bancassurance 156
Bancassurance in Vietnam is developing at a slower pace than in other Asian countries 156
... given a channel share of between only 3% and 5% of total life insurance premiums 156
... although the available evidence points to a rapid growth rate from this low base 156
Only a limited number of banks have set up captive or joint venture underwriters 156
... with Aviva and BNP Paribas Cardif apparent as joint venture partners 156
Typically, captive and joint venture insurers use bank distribution as part of a multi-channel strategy 157
Baoviet is known to be focusing increasingly on bancassurance as a strategic distribution channel 157
Several key factors have delayed the development of bancassurance in Vietnam 157
... although the experience of neighbouring countries points to strong future growth potential 158
Market size and growth of protection-related life insurance 158
Premiums for protection-related life insurance moved up consistently from 2010 onwards 158
Distribution share of banks 159
Bancassurance accounts for only a small proportion of total life insurance premiums 159
Bancassurance provision rates, operating models and partnerships 160
Risk life insurance 160
Prudential, Dai-ichi Life and Prévoir Life are ranked among the top five providers 160
... with the former company having established four partnerships for risk life policies 160
Critical illness insurance 160
Critical illness cover is promoted in a stand-alone format by a small minority of Vietnamese banks 160
Income protection insurance 163
Performance of key bancassurance underwriters 163
Although they have huge potential to grow, the market share of VCLI and VietinAviva remains low 163

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY 1
An average of 91.3% of total premiums can be attributed to non-creditor protection-related life insurance. 3
In South Korea, over 60% of protection-related life insurance premiums are secured through the bancassurance channel 5
The operating models used by banks to sell risk life insurance vary greatly by country 7
Five international insurance groups are active in five or more of the bancassurance markets covered ... 8
1.0 INTRODUCTION 9
Banks and other lending institutions contacted by Finaccord, segmented by country and type 11
2.0 ASIA-PACIFIC OVERVIEW 17

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Life Bancassurance in the Asia-Pacific Region: Protection-Related Life Insurance

http://www.reportbuyer.com/banking_finance/insurance/life/life_bancassurance_asia_pacific_region_protection_related_life_insurance.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Life_Insurance

For more information:
Sarah Smith
Research Advisor at Reportbuyer.com
Email: [email protected]
Tel: +44 208 816 85 48
Website: http://www.reportbuyer.com/

Sarah Smith, Research Advisor at Reportbuyer.com, +44 208 816 85 48, [email protected]