More Related Content More from Intelligo Consulting (20) Report prospectus bancassurance_china1. Bancassurance in China: Life, Non-Life and Creditor Insurance
Bancassurance in China:
Life, Non-Life and Creditor Insurance
February 2012
© Finaccord, 2012 Web: www.finaccord.com. E-mail: info@finaccord.com 1
2. Bancassurance in China: Life, Non-Life and Creditor Insurance
Prospectus contents
Page
What is the research? 3
What is the rationale? 4
How do banking institutions surveyed break down? 5
Which specific banking institutions were surveyed? 6
What is the structure of the report? 7
What are the key features of the research? 8
How can the research be used? 9
How can the PartnerBASE™ be used? 10
Who can use the research? 11
What are some of the key findings? 12-14
What is the price? 15
How can the research be purchased? 16
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3. Bancassurance in China: Life, Non-Life and Creditor Insurance
What is the research?
Bancassurance in China: 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 China.
Drawing on the results of a survey of 110 banking entities in China, 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.
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4. Bancassurance in China: Life, Non-Life and Creditor Insurance
What is the rationale?
There are several reasons for producing this report and associated PartnerBASE™ dataset about the
distribution by banks and other lending institutions of insurance products in China.
First and foremost, there are no other published sources of information that chronicle the current
status of this activity in similar depth. However, Finaccord established that over 40% of banking
organisations researched have an arrangement in place for selling at least one of the insurance
product types considered. This figure underlines the degree to which banks and other lending
institutions in China are increasingly interested in becoming distribution partners for these forms of
insurance. In addition, intervention on the part of the China Insurance Regulatory Commission
(CIRC) is changing the bancassurance landscape. In particular, new regulations are likely to see
Chinese banks reducing the number of insurance companies from which they source products,
entering into longer-term deals with those companies, migrating to a greater extent to distribution
agreements forged at a nationwide or near-nationwide level as opposed to a regional or even local
level, and implementing more professional sales practices. Moreover, the degree to which Chinese
banks and insurance companies take cross-shareholdings in one another is also increasing as a
result of changing regulations.
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5. Bancassurance in China: Life, Non-Life and Creditor Insurance
How do banking institutions
surveyed break down?
Retail sector
Specialised card issuer, 3
lender, 4
Automotive
captive, 7
Foreign bank,
10
City
Rural
commercial
commmercial
bank, 55
bank, 11
Bank, 20
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6. Bancassurance in China: Life, Non-Life and Creditor Insurance
Which specific banking
institutions were surveyed?
Banks and other lending institutions included in the PartnerBASE™ dataset are as follows:
AEON Credit Service Bank of Qingdao Citibank Hang Seng Bank Orient Jianghuai Auto Finance
Agricultural Bank of China Bank of Shanghai Dah Sing Bank Harbin Bank Ping An Bank
Bank of Beijing Bank of Shaoxing Daqing City Commercial Bank Home Mart Postal Savings Bank of China
Bank of Changsha Bank of Taizhou Datong City Commercial Bank HSBC Shanghai Pudong Development Bank
Bank of China Bank of Tianjin DBS Bank Hua Xia Bank Shanghai Rural Commercial Bank
Bank of Chongqing Bank of Wenzhou Deyang City Commercial Bank Huishang Bank Shengjing Bank
Bank of Communications Bank of Xian Dongfeng Nissan Auto Finance ICBC Shenzhen City Commercial Bank
Bank of Dalian Bank of Yingkou Dongfeng Peugeot Citroen Auto Fin. Industrial Bank (Fujian) Shenzhen Development Bank
Bank of Dandong Beijing Rural Commercial Bank Evergrowing Bank Jiangsu Lian. Dongfang Rural Bank Shenzhen Rural Commercial Bank
Bank of Dongguan Canzhou City Commercial Bank First Automobile Finance Jiaozuo City Commercial Bank Société Générale
Bank of Fushun Changshu Rural Commercial Bank Ford Automotive Finance Jinan City Commercial Bank Standard Chartered
Bank of Fuxin Chengdu Rural Commercial Bank Fudian Bank Jingzhou City Commercial Bank Tangshan City Commercial Bank
Bank of Guangzhou Chery Huiyin Auto Finance Fujian Haixia Bank Jinshang Bank The Bank of East Asia
Bank of Hanzhou China Bohai Bank Fujian Yonghui Jiujiang City Commercial Bank Weifang City Commercial Bank
Bank of Jiangsu China CITIC Bank Ganzhou City Commercial Bank Langfang City Commercial Bank Wuhan Rural Commercial Bank
Bank of Jiaxing China Construction Bank GMAC-SAIC Automotive Finance Maanshan Rural Commercial Bank Wujiang Rural Commercial Bank
Bank of Jilin China Everbright Bank Guangxi Beibu Gulf Bank Mercedes-Benz Auto Finance Xianyang City Commercial Bank
Bank of Jinzhou China Guangfa Bank Guangzhou Rural Commercial Bank Nanjing City Commercial Bank Yichang City Commercial Bank
Bank of Lanzhou China Merchants Bank Guilin Bank Nanyang City Commercial Bank Zhangjiang City Commercial Bank
Bank of Liaoyang China Minsheng Bank Guiyang City Commercial Bank OCBC Zhejiang Tailong Commercial Bank
Bank of Nanjing China Zheshang Bank Haina International Auto Leasing Oney Banque Accord Zhuhai City Commercial Bank
Bank of Ningbo Chongqing Rural Comm. Bank Hana Bank Orient Home Zigong City Commercial Bank
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7. Bancassurance in China: Life, Non-Life and Creditor Insurance
What is the structure of the report?
Executive Summary: providing a concise evaluation of the principal findings of the report.
Introduction: offering rationale, description of methodology and some definitions.
Market Analysis: beginning with introductions to China’s banking and bancassurance sectors, this
main chapter is then composed of five sections examining bancassurance activity across five broad
product categories: investment-related life insurance and retirement savings; protection-related life
insurance (composed of risk life, critical illness and income protection insurance); accident and
health insurance (made up of accident and medical expenses insurance plus health / hospital cash
plans); personal motor and household insurance; and creditor insurance (covering policies related
to mortgages, consumer finance and credit cards).
In addition to the analysis of and commentary about bancassurance partnerships for each of the 13
individual insurance products, the five sections also present standardised market size and growth
data (including lending market data in the case of mortgages, consumer finance and credit cards),
observations concerning the development and impact of bancassurance generally for each product
category or product, and figures illustrating the size and growth of key bancassurance underwriters
(including captives, joint ventures and other underwriters focused wholly or mainly on the bank
distribution channel).
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8. Bancassurance in China: Life, Non-Life and Creditor Insurance
What are the key features of the research?
Key features of this report include:
• analysis of all traceable partnerships for the distribution of 13 individual types of personal
insurance through banking entities in China;
• identification of the underwriters or other product providers used by the banks and other lending
institutions that are active in these areas;
• computation of the weighted share of bancassurance partnerships of these product providers,
illustrating which competitors hold the most significant relationships and which are limited to
relatively minor agreements;
• discussion of how new regulations are changing the way in which Chinese bancassurance works,
with important implications for aspiring product providers;
• quantification of the size, segmentation and growth of gross written premiums for the product
categories and markets covered in China.
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9. Bancassurance in China: Life, Non-Life and Creditor Insurance
How can the research be used?
You may be able to use this report and the PartnerBASE™ dataset that accompanies 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 China;
• 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 China;
• 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 China.
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10. Bancassurance in China: Life, Non-Life and Creditor Insurance
How can the PartnerBASE™ be used?
See the estimated
number of retail
Choose
customers for each
operating model
organisation
Estimated number
Name of organisation of retail customers Product type Product offered? Operating model Partner(s)
(000s)
China Merchants Bank 36,269 Critical illness insurance Yes Multiple external underwriters China Life, Taikang
China Minsheng Bank 15,525 Critical illness insurance Yes External underwriter Taiping
China Zheshang Bank 1,816 Critical illness insurance No
Chongqing Rural Commercial Bank 9,357 Critical illness insurance No
Citibank 328 Critical illness insurance Yes External underwriter Sino-US United MetLife
Look up specific Identify insurance
organisations Filter by product type underwriters
Note - The PartnerBASE™ also includes fields showing the category of organisation, its UHC (where part of a major group) and the UHCs that own
or co-own (in the case of joint ventures) the partners used for each product type.
Source: Finaccord Bancassurance in China PartnerBASE
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11. Bancassurance in China: Life, Non-Life and Creditor Insurance
Who can use the research?
1. Insurance underwriters: this study offers a uniquely comprehensive guide to the status of
bancassurance in China 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 active in China to
understand how their bancassurance strategy compares to that of other comparable institutions
in their domestic market;
3. Management consultancies: are you helping an insurance company or bank with its
bancassurance strategy in China? Understand the current status of bank distribution of
personal insurance products in this country, saving time and effort on researching the subject
yourself;
4. Investment banks and private equity companies: while most bancassurance initiatives in China
are organised by banks in conjunction with external underwriters, several captive and joint
venture companies exist and this research may be useful to understanding how there may be
scope for ownership configurations to change in future.
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12. Bancassurance in China: Life, Non-Life and Creditor Insurance
What are some of the key findings?
1. For investment-related life insurance, a significant proportion of banks
selling these policies do so in conjunction with multiple external providers
INVESTMENT-RELATED LIFE INSURANCE IN CHINA: INVESTMENT-RELATED LIFE INSURANCE IN CHINA : WEIGHTED
BANK PROVISION RATE AND OPERATING MODELS PROVIDER SHARES OF BANCASSURANCE PARTNERSHIPS
% of organisations offering product, and operating models used
100%
Other, 14.4%
China Life, 20.0%
80%
Other PICC, 3.6%
AIA, 3.6%
60% JV underwriter
New China Life, 5.6%
Captive underwriter Taikang, 16.0%
40%
Multiple external underwriters Sino-US United
MetLife, 10.6%
20%
External underwriter
Allianz China Life, 11.3% Ping An, 15.0%
0%
Product offered Operating model
Source: Finaccord Bancassurance in China PartnerBASE
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13. Bancassurance in China: Life, Non-Life and Creditor Insurance
What are some of the key findings? (cont.)
2. In the fast-growing combined market for personal motor and household
insurance in China, personal motor accounts for over 90% of the total
USD billion
20
16 Household insurance
12
8
4 Personal motor insurance
0
2007 2008 2009 2010 2011
Source: CIRC, Finaccord estimates
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14. Bancassurance in China: Life, Non-Life and Creditor Insurance
What are some of the key findings? (cont.)
3. Key findings from the executive summary include:
•within the relevant universe of banking entities (i.e. all organisations researched other than
automotive finance captives), bancassurance provision rates for investment-related life insurance
and retirement savings were 42.0% and 28.0%, respectively;
• among the same entities, risk life insurance and critical illness insurance registered equivalent
figures of 39.0% and 23.0% respectively although no bank was found to offer any form of income
protection insurance;
• provision rates are lower for accident insurance, medical expenses insurance, health / hospital
cash plans, personal motor insurance and household insurance, although as these sectors expand
in future, banks could be among the most significant distributors;
• across all forms of insurance investigated Finaccord identified two underwriters acting in a captive
capacity, namely China Post Life (for Postal Savings Bank of China) and Ping An (for Ping An
Bank) and four joint venture underwriters: CITIC Prudential, HSBC Life, ING-BoB Life Insurance
and Sun Life Everbright.
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15. Bancassurance in China: Life, Non-Life and Creditor Insurance
What are the prices?
Bancassurance in China: Life, Non-Life and Creditor Insurance is provided as an Adobe Acrobat
PDF document. The PartnerBASE™ dataset that accompanies it at no further charge is in
Microsoft Excel format. The price for this study and those for other reports published by Finaccord
about bancassurance are as follows:
REPORT PRICE *
Bancassurance in China: Life, Non-Life and Creditor Insurance GBP 995
Bancassurance in Austria, Belgium etc.: Life, Non-Life and Creditor Insurance * GBP 795
Creditor Insurance in Northern, Central and Eastern Europe GBP 2,495
Creditor Insurance in Southern and Western Europe GBP 2,495
Life Bancassurance in Europe: Investment-Related Life Insurance and Retirement Savings GBP 2,995
Life Bancassurance in Europe: Protection-Related Life Insurance GBP 2,995
Non-Life Bancassurance in Europe: Accident and Health Insurance GBP 2,995
Non-Life Bancassurance in Europe: Motor and Household Insurance GBP 2,995
* Titles focused on single territories are available for all 20 countries covered by this series.
For UK-based clients, VAT at the prevailing rate will be added to the basic price.
Costs quoted are for a single site user licence only.
For a corporate user licence, please see the next slide for further details.
Invoices can be paid in EUR or USD, at the prevailing exchange rate, if preferred.
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16. Bancassurance in China: Life, Non-Life and Creditor Insurance
How can the research be purchased?
Simple. Just go to the relevant area of the Finaccord web site available at
www.finaccord.com/order_eu_bancassurance_single_country_reports.htm and fill in the online
order form, clearly indicating:
• report required
• type of corporate user licence, if required *
• billing name
• address and e-mail address
• purchase order number, if applicable
Please allow up to one working day for the delivery of electronic copy by e-mail.
* For the corporate user licence please choose one of the following options:
1. One office, one country: no supplement over and above basic cost of reports ordered
2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered
3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered
4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered
VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers.
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