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Bancassurance in ASEAN Market Size (2024 - 2029)

The bancassurance model in the ASEAN region is characterized by the collaboration between banks and insurance companies to offer a diverse range of financial products through a single platform. This model benefits from the convenience of bundled offerings, making it easier for consumers to access various financial services. While there is a trend towards exclusive partnerships, the traditional distributor model remains prevalent. Customer demand in bancassurance-dominant countries leans towards savings-type products, driven by the high penetration of internet and mobile connectivity, which necessitates the digitization of the value chain. However, integrating platforms and channels to provide a seamless omni-channel experience poses significant challenges for insurers.

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Market Size of Bancassurance in ASEAN Industry

Bancassurance in ASEAN Market (2020-2025)
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

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*Disclaimer: Major Players sorted in no particular order

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 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
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Bancassurance in ASEAN Market Size Summary

Bancassurance, a model combining banks and insurance companies, is gaining traction in the ASEAN region due to its ability to offer a comprehensive range of financial products in a single, convenient package. This model is particularly appealing as it allows for the sale of various products, from traditional banking services to mutual funds and insurance, through a one-stop shopping experience. The industry is witnessing a shift towards exclusive partnerships, although the pure distributor model remains prevalent. Bank staff are primarily responsible for sales, supported by insurer specialists, with a preference for unit-linked and savings-type products over protection products. The increasing penetration of the internet and social media, along with high mobile connectivity, is driving the need for digitization within the bancassurance sector. However, integrating platforms and channels to provide a seamless omni-channel experience poses significant challenges.

The ASEAN region's bancassurance market is robust, with Singapore, Thailand, and Indonesia leading in premium contributions. While life insurance dominates the market, traditional distribution channels remain strong in mature markets like Singapore, digital channels are gaining ground in developing markets such as Malaysia and Indonesia. Despite the dominance of agents as the primary distribution channel, there is a potential shift towards a more balanced distribution model, with bancassurance gaining a larger share. The report highlights the strategic importance of digitization, with players increasingly investing in digital initiatives to reduce acquisition costs and enhance customer engagement. Major players in the market include TMB Bank, DBS Bank, OCBC Bank, United Overseas Bank, and VietcomBank, all of which are navigating the evolving landscape of bancassurance in the region.

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Bancassurance in ASEAN Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

      1. 1.1.1 Insurance Market in the ASEAN region - Penetration, Growth rate

      2. 1.1.2 Prominence of Bancassurance - % share of Gross written premiums, by country

      3. 1.1.3 Bancassurance market share for Life Insurance in the ASEAN region by premiums written

      4. 1.1.4 Various types of products sold through Bancassurance distribution model

      5. 1.1.5 Rationale behind Importance of Bancassurance in various Insurance Segments

    2. 1.2 Bancassurance Business Models

      1. 1.2.1 Financial Conglomerates and Complex Businesses operating as Bancassurers

      2. 1.2.2 Joint Ventures and Deals among ASEAN Enterprises and/or Foreign Entities Operating in Domestic Market

    3. 1.3 Market Drivers

      1. 1.3.1 Advances in Distribution by Changes in Consumer Needs

      2. 1.3.2 Technological Advances and Impact of Digitalization on Distribution Model

    4. 1.4 Market Restraints

      1. 1.4.1 Complaince Issues due to Potential Market Risks

    5. 1.5 Importance of Evolving Regulatory Landscape in the Region

    6. 1.6 Porter's Five Forces Analysis

      1. 1.6.1 Threat of New Entrants

      2. 1.6.2 Bargaining Power of Buyers/Consumers

      3. 1.6.3 Bargaining Power of Suppliers

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 PESTLE Analysis

  2. 2. MARKET SEGMENTATION AND ANALYSIS

    1. 2.1 By Type of Insurance

      1. 2.1.1 Life insurance

      2. 2.1.2 Non-Life Insurance

      3. 2.1.3 Others

    2. 2.2 By Country

      1. 2.2.1 Indonesia

      2. 2.2.2 Malaysia

      3. 2.2.3 Thailand

      4. 2.2.4 Vietnam

      5. 2.2.5 Phillipines

      6. 2.2.6 Myanmar

      7. 2.2.7 Singapore

      8. 2.2.8 Cambodia

      9. 2.2.9 Laos

      10. 2.2.10 Brunei

Bancassurance in ASEAN Market Size FAQs

The Bancassurance in ASEAN Market is projected to register a CAGR of 6.20% during the forecast period (2024-2029)

TMB Bank, DBS Bank, OCBC Bank, United Overseas Bank and VietcomBank are the major companies operating in the Bancassurance in ASEAN Market.

Bancassurance in ASEAN Report Snapshots

Bancassurance in ASEAN Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)