BANCASSURANCE IN EUROPE: PRODUCT AND PARTNERSHIP STRATEGIES OF THE REGION’S TOP 150 RETAIL BANKING GROUPS TABLE OF CONTENTS 0.0 EXECUTIVE SUMMARY ............................................................................................................................... 1 1.0 INTRODUCTION ............................................................................................................................................ 3 What is this report about? .................................................................................................................................. 3 The study focuses on the bancassurance product and partnerships strategies of major banking groups… ............ 3 … with coverage of 24 insurance product classes… ................................................................................................... 3 … and analysis that highlights the insurance providers with the most significant partnerships.................................. 4 Methodology ....................................................................................................................................................... 4 Survey of banks and other lending institutions .............................................................................................. 4 Product definitions .............................................................................................................................................. 6 Accident insurance ......................................................................................................................................... 6 ATM cash / handbag / mobile (gadget / phone) / wallet insurance .............................................................. 6 ATM cash insurance ...................................................................................................................................................... 6 Handbag insurance ....................................................................................................................................................... 6 Mobile gadget insurance ............................................................................................................................................... 6 Mobile phone insurance ................................................................................................................................................ 6 Wallet insurance ............................................................................................................................................................ 7 Card protection insurance .............................................................................................................................. 7 Commercial liability insurance ........................................................................................................................ 7 Commercial motor insurance ......................................................................................................................... 7 Commercial property insurance ..................................................................................................................... 7 Creditor insurance ........................................................................................................................................... 7 Critical illness insurance ................................................................................................................................. 8 Health / hospital cash plans ........................................................................................................................... 8 Household insurance ...................................................................................................................................... 8 Identity protection assistance / insurance ...................................................................................................... 8 Income protection insurance .......................................................................................................................... 9 Investment-related life insurance ................................................................................................................... 9 Unit-linked and not-unit-linked insurance ...................................................................................................................... 9 Medical expenses insurance .......................................................................................................................... 9 Personal motor insurance .............................................................................................................................. 9 Professional indemnity insurance .................................................................................................................. 9 Retirement savings ....................................................................................................................................... 10 Risk life insurance ......................................................................................................................................... 10 Trade credit insurance .................................................................................................................................. 10 Travel insurance ........................................................................................................................................... 10 Other commercial non-life insurance ........................................................................................................... 10 Operating model definitions ............................................................................................................................. 10 Weighted provider share of partnerships ........................................................................................................ 11 Abbreviations and exchange rates .................................................................................................................. 11 PartnerBASE .................................................................................................................................................... 12 Finaccord .......................................................................................................................................................... 12 Numerous other multi-country studies about bancassurance are also available from Finaccord ............................ 12 2.0 GROUP STRATEGY OVERVIEW .............................................................................................................. 14 © FINACCORD (08/2017) i BANCASSURANCE IN EUROPE: PRODUCT AND PARTNERSHIP STRATEGIES OF THE REGION’S TOP 150 RETAIL BANKING GROUPS Introduction ....................................................................................................................................................... 14 Captive and joint venture underwriters............................................................................................................ 14 Over 80 of the 150 banking groups own at least one captive or joint venture underwriter… ................................... 14 … although several have had to divest their insurance interests in recent years ..................................................... 14 Insurers belonging to banking groups in scope secured over EUR 200 billion in premiums in 2016…................... 15 … with those belonging to BNP Paribas and Crédit Agricole the largest by some distance .................................... 18 Over 30 insurance groups have established joint ventures with banks in Europe .................................................... 18 Strategic partnerships ...................................................................................................................................... 20 35 out of the 150 banking groups are classifiable as having strategic bancassurance partnerships ....................... 20 Among insurers, AXA, Caser and Munich Re hold the most such relationships ...................................................... 21 All partnerships ................................................................................................................................................. 23 AXA, BNP Paribas Cardif and Generali hold the most ties of any type among the 150 banking groups ................ 23 Provision rates of insurance products via banks ............................................................................................ 25 Overview ....................................................................................................................................................... 25 Creditor and household insurance policies are most commonly on offer from the banks investigated ................... 25 Around a quarter of banks have developed a commercial lines offering for business customers ........................... 25 Over 30% of banking entities surveyed are distributors of investment-related life insurance ................................... 25 Critical illness insurance ............................................................................................................................... 27 Where available (which is quite rarely), critical illness policies usually cover multiple serious ailments .................. 27 ATM cash / handbag / mobile / wallet insurance 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