Monthly Market Risk Update: April 2024 [SlideShare]
Bancassurance Models Around the World by Tobias schneider
1. Prepared by Aon Inpoint
Bancassurance Models Around the World
Presentation at the 1st Annual Bancassurance Conference in Kenya
Nairobi - 24th March 2015
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Operating Principles
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Everything Aon does is focused on creating distinctive value for our (re)insured clients. That includes Aon’s relationship
with you and other carriers so that you can compete effectively and Aon can provide valuable solutions and greater
choice to our mutual clients. The Aon Inpoint services support this objective.
Building clear and superior differentiation together for clients through commitments to you that build on your strengths
should create a uniquely differentiated value proposition for our mutual clients.
Aon Risk Solutions ("ARS"), Aon Benfield (“AB”) and the Aon Inpoint team will always act in the best interests of
Aon’s insured and reinsured clients.
Aon Inpoint will not perform studies or provide services for insurers or reinsurers that may be detrimental to its clients
or cedents.
Aon Inpoint in performing insurance studies will not access any reinsurance data from Re/View. For reinsurance
studies, data will be sourced by Aon Inpoint from Re/View, but will never be sourced directly from GRiDS.
Your organisation and ours agree to act in the best interests of the (potential) (re)insured at all times, and in
compliance with all relevant applicable laws.
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Both parties recognise and acknowledge that the ultimate decision regarding the acceptance of any insurer/reinsurer
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Notwithstanding our agreement to deliver the Aon Inpoint services, Aon will continue to consider and solicit coverage
on behalf of its clients from (re)insurers who do not procure the Aon Inpoint services.
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The Aon Inpoint services do not guarantee increased placements or revenue to you.
Aon does not and will not steer clients to any particular insurer, or cedents to any particular reinsurer.
Aon will never, directly or indirectly, leverage or tie ARS placements and AB placements and Aon Inpoint will not in any
way facilitate such behavior.
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Agenda
0. A few words about Aon Inpoint
1. Introduction
2. Key factors that shape bancassurance markets…
3. …and what their impacts on operating models are
4. Top 10 of the most successful bancassurance captives
5. Bancassurance in sub-Saharan Africa: Opportunity and challenges
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1. A few words about Aon Inpoint…
Aon Inpoint is part of the Aon family…
120+ offices around the globe
66,000+ colleagues worldwide
$12 billion in revenues in 2014
…with unique access to data
$150 billion in premium flow to date
1,350 Global Carriers
68,774 Global Clients in 180 territories
Aon Inpoint believes the key to driving successful industry innovation and
change is through taking advantage of data and analytics
Market leading
insurance data and
analytics
World class
insurance
consulting
Specialist Aon Risk
Solutions expertise
Integrated global
execution
Aon Inpoint’s three core value propositions
Business excellence: Optimising insurer’s value proposition, distribution, and connectivity
Portfolio opportunities: Identifying and executing growth opportunities around existing business
Strategic initiatives: Identifying, developing and executing game changing business opportunities
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1. Introduction
“It is important that every country, developing or otherwise, gives
careful consideration to the great value of Bancassurance as a means
to grow the presence and use of insurance within a community.
For all its youth, Bancassurance is emerging as a natural pathway for
the effective development of insurance.
There can be no doubt of the importance of the potential for
Bancassurance to open the path toward cost-efficient access to
insurance products, both Life and non-Life.”
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2. Key Factors that Shape Bancassurance Markets…
Meta level: Regulation Financial crisis
Country level: Regulation Market characteristics
C
o
n
s
u
m
e
r
Country-specific bancassurance
markets characteristics
New capital requirements Divestments
Mediation laws,
shareholding rules,
product regulations
Banking & insurance
sector, cultural factors
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3. Bancassurance Operating Models
0%
20%
40%
60%
80%
100%
Turkey Brazil Spain France S. Korea Russia Germany UK Chile Japan
% of life insurance premiums distributed via banks
Bancassurance as a market maker Strong competition from agents
Regulation
RegulationPPI
Similar operating models
Source: Finaccord Global Bancassurance Reports
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42%
58%
Yes No
3. Bancassurance Operating Models
Source: Finaccord Global Bancassurance Reports
38%
14%9%
39%
Captive JV Captive + JV None
Operating models of the 125 largest banking groups Strategic partnerships of the 125 largest banking groups
Recent trends Recent trends
Captive /
JV Crisis / regulations
JV / None
Capital / opportunities
None / JV
Captives /
JV
Europe Emer.
Mar.
15 yrs. / 11 countries
15 yrs. / 11 countries
10 yrs. / multiple countries
5 yrs. / 6 countries
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3. Bancassurance Operating Models
0% 20% 40% 60% 80% 100%
Japan
S. Korea
India
Spain
Brazil
France
External underwriter Multiple external underwriters
Captive underwriter JV underwriter
Other
Captives / JVs dominate
Common vision
Tailor-made products
Multiple external partners
Strict regulations
Nevertheless successful
Referral model
Banks as multi-tied agents
JV model dominates
Strict rules regarding FDI
Operating models by country Comment
Source: Finaccord Global Bancassurance Reports
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4. Top 10 of the most successful bancassurance captives
Rank Group Premiums 2012
1 Crédit Agricole $29.0 bn
2 ING Group $26.1 bn
3 BNP Paribas $25.5 bn
4 Bradesco $21.1 bn
5 Crédit Mutuel $15.2 bn
6 Lloyds Banking Group $13.3 bn
7 Société Générale $13.1 bn
8 HSBC $13.0 bn
9 NongHyup Group $9.1 bn
10 Intesea Sanpaolo $7.3 bn
Origin Comment
Fully integrated model
Long tradition
Investment life policies
Divesting groups
Ca. 45m insurance clients
Ca. 30% of total profit
‘Role model of success’
Source: Finaccord Global Bancassurance Reports
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Challenges
Key success factors Status Comment
1. Beneficial regulatory
environment
2. Commitment of banks to
insurance
3. Large life insurance
market
4. Large consumer lending
markets
5. Tight bancassurance
partnerships
6. Staff training
7. Tailor-made insurance
products for the bank
Angola
Côte d'Ivoire
Ghana
Kenya
Mozambique
Nigeria
Tanzania
Uganda
Zambia
0
20
40
60
9 largest sub-Sahran
Africa countries (ex ZA)
Czech Republic
Total consumer lending ($bn)
0
1
2
3
4
5
9 largest sub-Sahran
Africa countries (ex ZA)
Czech Republic
Life insurance GWP ($bn)
1. Does it feel like joint ‘ownership’?
2. Do you treat each other as equals?
3. Do you regularly evaluate performance?
4. Do you set future plans?
4. Bancassurance in Sub-Saharan Africa: Challenges
Emerging
Emerging
Under-
developed
Emerging
Under-
developed
Source: Finaccord: Bancassurance in Africa
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Opportunities
4. Bancassurance in Sub-Saharan Africa: Opportunities
-4%
-2%
0%
2%
4%
6%
8%
10%
2006 2008 2010 2012 2014 2016 2018 2020
European Union Sub-Saharan Africa
Robust GDP growth
Technological development
Fastest-growing middle class in the world
Fastest-growing working age population
Consumer spending of $1.4 tr. In 2020
Consumer spending
Pan-African / international groups
Source: IMF