Bancassurance in ASEAN Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 6.20 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Bancassurance in ASEAN Market Analysis
Bancassurance - combined banks and insurance companies - is a business model for the distribution of a wide variety of insurance products. The prominence of this model lies in the ease of doing the sales part as the bancassurers can provide a full range of financial products as a bundled offering - from traditional banking, through mutual funds to insurance products - in one-stop shopping model.
There are different business models in bancassurance. There seems to be a tendency to move towards exclusive partnerships in recent years, yet a pure distributor model is still more commonly seen. Bank staff plays a primary role in selling products among the responding companies, followed by insurer specialists. Most responders use more than two methods. Generally speaking, unit-linked products are more popular, followed by endowments in selected institutions. Especially in those countries where bancassurance is dominant, there is clear customer demand for savings-type products rather than protection products.
With an internet and social media penetration of 65% and 63% respectively, combined with mobile connectivity of 132%, consumers expect to have transparence in information and immediate gratification in all possible manners. Given the customer preferences, digitization of the existing value chain is crucial to prepare themselves for the digital future. But platform and channel integration can be a major challenge for insurers those who want to deliver a true omni-channel experience.
Bancassurance in ASEAN Market Trends
This section covers the major market trends shaping the Bancassurance in ASEAN Market according to our research experts:
Significance of bancassurance as a distribution channel in ASEAN region
Multinational and domestic insurers are forming bancassurance agreements. In Singapore, Chubb insurance formed a bancassurance agreement with local bank DBS to gain access to the local distribution networks as well as to develop and test microinsurance products. Regulators in some markets are facilitating the shift to digital and direct. In Singapore, the approval of a full direct life insurance license to a well-capitalized InsurTech in 2017 was the first local insurer to win approval in nearly 50 years.
Despite the increasing importance of digitization, the majority of the players have been spending 1 to 2% of their gross premiums annually towards the digital front (in addition to the general IT spending) and this share is expected to increase in the future in a more strategic manner. Hybrid strategies are gaining popularity which is combining proprietary concerns with some sort of external collaboration. The main short-term attraction for digitization is cost-saving because the cost of acquisition i.e., commission fees can reach up to 20% of gross premiums in some ASEAN countries. In the case of bancassurance, which is more prevalent in life than non-life, no insurer offers customized products, which limits their opportunities to increase penetration.
Impact of life insurance on the insurance value chain of the region
ASEAN region’s three largest insurance markets – Singapore, Thailand, and Indonesia account for almost 3/4th of the total ASEAN premiums written (both life and non-life) in 2018. Bancassurance has seen sound development in the region. In Thailand, Singapore, The Philippines, Malaysia and Indonesia, the bancassurance market share is the second-largest and competes with agents’ market share.
At a share of 71% in total premiums, Life insurance plays a prominent role in the ASEAN region. In life insurance, the traditional channels remain dominant distribution channels in mature markets like Singapore, but in developing markets like Malaysia and Indonesia, digital channels are becoming more prominent. With a considerably lower growth rate than the worldwide average in terms of premiums written, non-life insurance players tread very carefully when going ahead with a distribution channel in the region.
There is no doubt to say that agents remained as the main distribution channel in the region, but some market sources indicate the distribution share might converge at 50% bancassurance, 30% agents and 20% other channels in the future. Despite the digital wave, hybrid strategies may likely defend this distribution model and help the insurers provide an omni-channel experience to the customers.
Bancassurance in ASEAN Industry Overview
The report includes an overview of the largest insurance providers and a few financial conglomerates operating in the market studied. Currently, some of the major players dominating the market studied, in terms of market share.
Bancassurance in ASEAN Market Leaders
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TMB Bank
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DBS Bank
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OCBC Bank
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United Overseas Bank
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VietcomBank
*Disclaimer: Major Players sorted in no particular order
Bancassurance in ASEAN Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
2. RESEARCH METHODOLOGY
- 2.1 Study Deliverables
- 2.2 Study Assumptions
- 2.3 Analysis Methodology
- 2.4 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Overview
- 4.1.1 Insurance Market in the ASEAN region - Penetration, Growth rate
- 4.1.2 Prominence of Bancassurance - % share of Gross written premiums, by country
- 4.1.3 Bancassurance market share for Life Insurance in the ASEAN region by premiums written
- 4.1.4 Various types of products sold through Bancassurance distribution model
- 4.1.5 Rationale behind Importance of Bancassurance in various Insurance Segments
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4.2 Bancassurance Business Models
- 4.2.1 Financial Conglomerates and Complex Businesses operating as Bancassurers
- 4.2.2 Joint Ventures and Deals among ASEAN Enterprises and/or Foreign Entities Operating in Domestic Market
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4.3 Market Drivers
- 4.3.1 Advances in Distribution by Changes in Consumer Needs
- 4.3.2 Technological Advances and Impact of Digitalization on Distribution Model
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4.4 Market Restraints
- 4.4.1 Complaince Issues due to Potential Market Risks
- 4.5 Importance of Evolving Regulatory Landscape in the Region
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4.6 Porter's Five Forces Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 PESTLE Analysis
5. MARKET SEGMENTATION AND ANALYSIS
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5.1 By Type of Insurance
- 5.1.1 Life insurance
- 5.1.2 Non-Life Insurance
- 5.1.3 Others
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5.2 By Country
- 5.2.1 Indonesia
- 5.2.2 Malaysia
- 5.2.3 Thailand
- 5.2.4 Vietnam
- 5.2.5 Phillipines
- 5.2.6 Myanmar
- 5.2.7 Singapore
- 5.2.8 Cambodia
- 5.2.9 Laos
- 5.2.10 Brunei
6. COMPETITIVE LANDSCAPE
- 6.1 Overview (Market Concentration and Major Players)
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6.2 Company Profiles
- 6.2.1 DBS Bank
- 6.2.2 OCBC Bank
- 6.2.3 United Overseas Bank
- 6.2.4 Siam Commercial Bank
- 6.2.5 VietcomBank
- 6.2.6 TMB Bank
- 6.2.7 FWD Insurance
- 6.2.8 Generali Vietnam Life
- 6.2.9 Sun Life
- 6.2.10 Prudential Insurance*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Bancassurance in ASEAN Industry Segmentation
An understanding of the present status of the ASEAN banking and insurance markets to deep-dive into insurance distribution such as bancassurance business models across the region, along with detailed market segmentation, product types, current market trends, changes in market dynamics, and growth opportunities. In-depth analysis of the market size and forecast for the various segments.
| By Type of Insurance | Life insurance |
| Non-Life Insurance | |
| Others | |
| By Country | Indonesia |
| Malaysia | |
| Thailand | |
| Vietnam | |
| Phillipines | |
| Myanmar | |
| Singapore | |
| Cambodia | |
| Laos | |
| Brunei |
Bancassurance in ASEAN Market Research FAQs
What is the current Bancassurance in ASEAN Market size?
The Bancassurance in ASEAN Market is projected to register a CAGR of 6.20% during the forecast period (2024-2029)
Who are the key players in Bancassurance in ASEAN Market?
TMB Bank, DBS Bank, OCBC Bank, United Overseas Bank and VietcomBank are the major companies operating in the Bancassurance in ASEAN Market.
What years does this Bancassurance in ASEAN Market cover?
The report covers the Bancassurance in ASEAN Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Bancassurance in ASEAN Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Bancassurance in ASEAN Industry Report
Statistics for the 2024 Bancassurance in ASEAN market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Bancassurance in ASEAN analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
