Finaccord’s report titled Life Bancassurance in Europe: Protection-Related Life Insurance offers fresh and valuable insights into the distribution by banks and other lending institutions of risk life, critical illness and income protection insurance in 20 European countries: Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and the UK. Drawing on the results of a survey of nearly 1,200 banking entities, the study verifies that 45.5% offer at least one of the types of protection-related life insurance researched, giving a total of 890 initiatives in the three fields combined. Hence, given that the aggregate market for protection-related life insurance across the 20 countries, excluding creditor cover, is worth around EUR 41.6 billion, it is clear that banks and other lending institutions can intermediate a significant volume of business in this sector. In addition to identifying the schemes for distribution of protection-related life insurance through the bancassurance channel, the research also classifies and analyses these according to the operating model used, distinguishing, for example, between captive, joint venture and external underwriters. Furthermore, it also calculates the weighted share of partnerships of the underwriters and other product providers involved, thereby illustrating not only which competitors hold which partnerships but also which competitors hold the most significant distribution deals. 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 risk life insurance, critical illness insurance and income protection insurance by a majority of significant banking entities in Europe; - identify partnership opportunities for protection-related life insurance 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; - assess the background to the most significant bancassurance deals, differentiating between those that originate from long-term or strategic objectives and those that are more transient; - appreciate the magnitude of the opportunity to sell protection-related life insurance through banks and other lending institutions in Europe.
Life Insurance Industry in Europe
TABLE OF CONTENTS
0.0 EXECUTIVE SUMMARY ... 1
In recent years, the total market value has grown at a compound annual average of 4.0% .. 2
Non-creditor business makes up more than half the market in seven countries out of 20 . 2
Growth rates in excess of 3% a year are being recorded even in the most mature markets . 4
Bancassurers’ share of protection-related life insurance does not exceed 80% in any country 6
Nearly a half of entities surveyed have a partnership for at least one type of protection-related life policy ... 7
Larger distributors are more likely to have captive or joint venture insurance partners .. 7
Six of the eight leading providers of these products across Europe as a whole are French... ... 7
... and six of the top eight are bank-owned ... 7
1.0 INTRODUCTION 9
What is this report about? .. 9
Distribution partnerships with banks and other lending institutions constitute the focus of this report ... 9
Rationale . 9
Nearly a half of banking organisations surveyed sell at least one type of the products covered by this report . 9
Methodology . 10
Survey of banks and other lending institutions 10
Market data ... 10
Definitions . 12
Protection-related life insurance ... 12
Risk life insurance 12
Critical illness insurance .. 12
Income protection insurance ... 12
Weighted provider share of partnerships 12
Operating models . 13
Abbreviations and exchange rates .. 14
Finaccord .. 14
2.0 EUROPEAN OVERVIEW 16
Introduction ... 16
Market analysis – protection-related life insurance 16
Gross written premiums for protection-related life insurance have grown in each year since 2006... . 16
...with the French market boosted by provident institutions and health mutuals in addition to insurers ... 16
Gross written premiums have risen in all but two of the 20 countries investigated ... 18
Non-creditor insurance makes up more than half of total protection-related life insurance across Europe... .. 19
...mainly because of the sheer size of the French non-creditor market . 19
Per capita premiums for protection-related life insurance in France are more than 125 times those in Russia .. 22
Bancassurance analysis .. 23
Provision rates and operating models for risk life insurance .. 23
No banking entity in the Czech Republic was found to offer stand-alone risk life insurance 23
A half of all partnerships operate with a single external underwriter... ... 23
...though captives are preferred in several countries .. 23
The captive model is most common on a weighted basis... .. 27
... simply because larger institutions are more likely to have established captive insurance providers ... 27
Provision rates and operating models for critical illness insurance 30
The provision rate for stand-alone critical illness insurance is highest in Norway . 30
More than 10% of banks use a broker for critical illness insurance, compared to 5.8% for risk life . 30
Captive providers are again more prominent on a weighted basis 34
Provision rates and operating models for income protection insurance 37
On average, just over one in five of the institutions surveyed offer income protection insurance 37
A majority of partnerships are built around captive underwriters when measured on a weighted basis .. 40
Distribution share of bancassurance for protection-related life insurance . 43
Finaccord’s analysis illustrates the influence of bancassurance on a standardised basis ... 43
The highest share attributable to the bancassurance channel is between 60% and 80% ... 43
Pan-European bancassurance groups 45
French captive bancassurance groups dominate the European market by size... ... 45
... and only two non-captives rank in the top tier 45
3.0 AUSTRIA ... 47
Banks and other lending institutions covered . 47
Introduction to the banking sector ... 47
The banking system can be divided according to how banks operate at the national, regional and local level .. 47
Austrian banks are expected to raise EUR 2.9 billion to meet new capital requirements . 48
Insurance market size and growth .. 48
Austria’s market for protection-related life insurance is delivering very little growth .. 48
Distribution share of banks .. 49
Bancassurance provision rates, operating models and partnerships ... 50
Risk life insurance 50
Risk life insurance is most commonly offered through external or joint venture underwriters .. 50
Both ERGO and Generali have bought majority stakes in major bancassurance providers in recent years... 50
Oberösterreichische Versicherung acts both as an external and joint venture underwriter . 50
Critical illness insurance ... 52
In conjunction with ACE, American Express markets a critical illness policy focused on cancer . 52
Income protection inurance . 54
Income protection insurance is quite commonly available from banks in Austria... .. 54
... with Raiffeisen Versicherung prominent in terms of its weighted share of partnerships ... 54
Cardif is unique in having introduced short-term income protection cover 54
A few banks offer income protection insurance in co-operation with joint venture underwriters .. 54
Performance of key bancassurance underwriters .. 56
On a combined basis, bancassurers increased their share of total life insurance between 2006 and 2010 ... 56
4.0 BELGIUM .. 57
Banks and other lending institutions covered . 57
Introduction to the banking sector ... 57
Structurally, Belgium’s banking and insurance sectors are very closely linked . 57
Dexia’s banking and insurance operations were nationalised in October 2011 57
Insurance market size and growth .. 58
Growth in protection-related life insurance in Belgium derives primarily from group business. 58
Distribution share of banks .. 59
Banks are dominant in individual life insurance, especially for single premium contracts 59
Bancassurance provision rates, operating models and partnerships ... 60
Risk life insurance 60
Around one quarter of relevant banking entities in Belgium offer this type of cover . 60
AG Insurance acts as a joint venture underwriter for two key distributors… . 60
…whereas many leading (and often captive) insurers maintain just one partnership .. 60
Critical illness insurance ... 63
Only one specialist bank is found to be offering this type of protection-related life cover… . 63
…and this instance may simply be the result of its clients’ particular insurance-related needs ... 63
Income protection insurance ... 65
All of the major Belgian retail banks offer stand-alone income protection policies… 65
…and distribution partnerships for this type of cover mirror those used for risk life insurance . 65
Performance of key bancassurance underwriters .. 67
On a combined basis, the market share in total life insurance of key Belgian bancassurers has plateaued .. 67
5.0 CZECH REPUBLIC .. 68
Banks and other lending institutions covered . 68
Introduction to the banking sector ... 68
The Czech banking sector has remained stable during and in the aftermath of recent financial crises... ... 68
...albeit the rate of foreign ownership could lead to significant restructuring . 69
Insurance market size and growth .. 69
The market for protection-related life insurance has enjoyed relatively strong growth in recent years 69
Distribution share of banks .. 70
Bancassurance provision rates, operating models and partnerships ... 71
Risk life, critical illness and income protection insurance... 71
No lending institution was found to offer protection-related life insurance . 71
Performance of key bancassurance underwriters .. 71
Among bancassurers, Komer?ní pojiš?ovna has grown most rapidly in total life insurance . 71
6.0 DENMARK 72
Banks and other lending institutions covered . 72
Introduction to the banking sector ... 72
Seven of the largest ten banking institutions are indigenous to Denmark . 72
The Danish banking sector has changed significantly as a result of the financial crisis... 72
...and the number of lending institutions is expected to decrease further .. 73
However, the four largest Danish banks remain comparatively healthy 73
Insurance market size and growth .. 73
Consistent if modest growth characterises protection-related life insurance in Denmark 73
Distribution share of banks .. 75
Bancassurance provision rates, operating models and partnerships ... 75
Risk life insurance 75
Excluding specialised lenders, most banking entities are active in this field . 75
By weighted share of partnerships, PFA is the market leader... 75
... followed by NyKredit Livsforsikring and three captive underwriters ... 75
PFA has developed an insurance policy with the specific focus of protecting children 76
Critical illness insurance ... 78
The main partnerships are similar to those for risk life insurance .. 78
Income protection insurance ... 80
The provision rate for this form of cover is almost the same as that for critical illness insurance . 80
In a number of cases, stand-alone unemployment insurance is available 80
Performance of key bancassurance underwriters .. 82
The market share of total life insurance of Danica Pension fell sharply in 2009 and 2010 .. 82
7.0 FINLAND ... 83
Banks and other lending institutions covered . 83
Introduction to the banking sector ... 83
Finland’s banking sector is relatively concentrated and dominated by OP-Pohjola and Nordea... .. 83
... albeit with competition from a range of other foreign-owned and co-operative / savings banks... ... 83
... plus S-Pankki, the banking arms of the S-Group retailing co-operative 84
The Finnish banking system has a very low exposure to troubles elsewhere in Europe . 84
Insurance market size and growth .. 84
Growth in Finland’s protection-related life insurance market plateaued somewhat in 2009 and 2010 84
Distribution share of banks .. 85
Bancassurance provision rates, operating models and partnerships ... 86
Risk life insurance 86
Risk life insurance is marketed by a handful of banking institutions in Finland... .. 86
... with captive underwriters used in a majority of cases 86
Critical illness insurance ... 88
The policies marketed by banks are mainly restricted to cover for cancer 88
Income protection insurance ... 88
Just one bank is active in this domain. 88
Performance of key bancassurance underwriters .. 91
The combined market share of competitors with a strong exposure to bancassurance is increasing . 91
8.0 FRANCE 92
Banks and other lending institutions covered . 92
Introduction to the banking sector ... 92
Insurance market size and growth .. 93
France’s market for protection-related life insurance is both large and multi-faceted ... 93
Distribution share of banks .. 94
French banks remain dominant in life insurance in spite of a slight fall in their distribution share since 2006 . 94
Bancassurance provision rates, operating models and partnerships ... 95
Risk life insurance 95
More than half of bancassurance partnerships for this type of cover involve a captive underwriter... . 95
…with Predica, Cardif and ACM prominent in the wake of CNP Assurances, the sector leader . 95
Carrefour Bank and La Banque Postale each make use of joint venture insurers ... 96
Critical illness insurance ... 98
Bank distribution of critical illness cover is virtually absent from the French market… . 98
…and the ‘Plan Triple Sécurité’ distributed by American Express is underwritten by ACE .. 98
Income protection insurance . 100
The vast majority of French banks offering this cover do so via a captive underwriter… ... 100
…although external providers Generali and Intériale Mutuelle are also active in this market 100
Captive insurers with multiple vendors include ACM, Assurances Banque Populaire Vie, Cardif and Predica 100
Performance of key bancassurance underwriters 102
The leading three bank-owned insurers all expanded their share of the total life insurance market in 2010 102
9.0 GERMANY .. 103
Banks and other lending institutions covered ... 103
Introduction to the banking sector . 104
In spite of some consolidation, Germany’s banking sector remains comparatively fragmented 104
Many of the regional public sector banks have suffered during the financial crisis... .. 104
... although the savings banks are largely perceived by consumers to be safe institutions 104
Taken as a whole, the co-operative banks possess the most retail branches in Germany 105
Insurance market size and growth 105
Protection-related life insurance is composed primarily of the risk life and work incapacity segments .. 105
Reforms to the pension system have resulted in growing demand for work incapacity insurance 105
Distribution share of banks 106
Recent evidence suggests the distribution share of banks in protection-related policies is rising .. 106
Bancassurance provision rates, operating models and partnerships . 107
Risk life insurance .. 107
Around a half of banking institutions researched in Germany are distributors of risk life insurance .. 107
Commerzbank switched its bancassurance partner after buying Dresdner Bank from Allianz in 2008 107
Zurich’s strategic partnership with Deutsche Bank has been running for over ten years ... 107
Rheinland Versicherungen extended its relationship with Santander Consumer Bank in early 2011 ... 107
Several private sector insurers have established partnerships with public sector savings banks .. 108
ERGO Direkt (formerly KarstadtQuelle Versicherungen) is used by Valovis Bank 108
Building societies generally distribute the policies of their parent insurance companies 108
Six banks utilise captive brokers for risk life insurance. 108
Several significant banking institutions are not distributors of stand-alone risk life insurance 108
Critical illness insurance . 111
Critical illness insurance is not widely marketed by banking institutions in Germany . 111
Income protection insurance . 113
Provision rates and partnerships largely resemble those for risk life insurance... ... 113
... although some are unique to this form of cover... 113
... including relationships involving American Express and National Bank . 113
Performance of key bancassurance underwriters 115
The bancassurance-focused subsidiaries of Talanx ceded market share between 2006 and 2010 . 115
10.0 IRELAND ... 116
Banks and other lending institutions covered ... 116
Introduction to the banking sector . 116
Six major Irish banks have been reduced to three by the financial crisis... . 116
... with foreign-owned banks making up the field .. 116
The Irish League of Credit Unions has the largest customer base, spread across 400 entities 117
Insurance market size and growth 117
Ireland’s market for protection-related life insurance is likely to have declined since 2007 117
Distribution share of banks 118
Bancassurance provision rates, operating models and partnerships . 119
Risk life insurance .. 119
Mortgage specialists do not offer stand-alone risk life insurance. 119
Critical illness insurance . 119
All banks offering stand-alone risk life insurance also offer stand-alone critical illness cover. 119
Income protection insurance . 121
EBS distributes income protection cover but not risk life or critical illness insurance .. 121
Performance of key bancassurance underwriters 123
Key bancassurance underwriters account for a very significant share of total life and pensions... 123
... although this share fell to a four year low in 2009 for life insurance, in particular 123
11.0 ITALY . 125
Banks and other lending institutions covered ... 125
Introduction to the banking sector . 125
Four, or arguably five, retail banking groups lay claim to a genuinely nationwide network… 125
… although these are being challenged by an array of ambitious regional competitors… 126
… including the banche di credito cooperativo and casse Raiffeisen….. 126
… as well as several insurer-owned banks and banks falling under foreign ownership . 126
Italy also plays host to a considerable number of specialised lending institutions .. 126
Italy’s banking groups typically encapsulate a number of local or regional banking brands... 127
Insurance market size and growth 127
Gross written premiums for protection-related life insurance peaked at EUR 2.13 billion in 2008 . 127
Distribution share of banks 128
Banks took the lion’s share of sales of life insurance in every year from 2006 to 2010 .. 128
Bancassurance provision rates, operating models and partnerships . 129
Risk life insurance .. 129
Two major banking groups each hold stakes in a pair of joint venture bancassurance entities . 129
Some captive and joint venture firms have been successful in creating partnerships with external banks ... 129
Recent years have seen both the creation and winding down of joint venture underwriters .. 130
Unipol has owned over 60% of the equity capital of Arca since June 2010 130
A number of major banking entities ignore risk life insurance in favour of creditor policies 131
Critical illness insurance . 133
Just three banking institutions offer policies with a significant critical illness component 133
Income protection insurance .. 135
Three major banking networks distribute income protection insurance .. 135
Assimoco is used as one of two providers by the Gruppo Bancario Raiffeisen as well as by ten local banks .. 135
Performance of key bancassurance underwriters 137
Over 30 bank-owned captive or joint venture underwriters are active in the Italian life insurance market . 137
12.0 NETHERLANDS ... 139
Banks and other lending institutions covered ... 139
Introduction to the banking sector . 139
The Dutch state exerts a greater influence on the retail banking sector than foreign institutions... 139
…and is likely to continue to do so until 2014 at least .. 139
ING has reshaped itself greatly in recent years 139
Several lending institutions have closed to new business ... 140
Insurance market size and growth 140
Different forms of income protection insurance are significant within the overall market 140
Distribution share of banks 141
Banks increased their share of the individual life insurance market between 2008 and 2010 ... 141
Bancassurance provision rates, operating models and partnerships . 142
Eight captive underwriters and three joint venture underwriters are active in this market .. 142
Where risk life insurance is not offered, there is usually a logical reason why this is the case... 143
Critical illness insurance . 145
No bancassurance policy in the Netherlands fits the definition of critical illness insurance 145
Income protection insurance . 145
Dutch income protection plans are designed for medium-term disability, not unemployment ... 145
Performance of key bancassurance underwriters 147
Underwriters owned wholly or in part by banks account for over one third of total life insurance .. 147
13.0 NORWAY .. 148
Banks and other lending institutions covered ... 148
Introduction to the banking sector . 148
Four, or arguably five of the ten lending institutions are owned by foreign parents 148
Two savings banks groups play an important role in Norway’s banking sector .. 148
International financial crises have had a limited impact on Norway’s banking market ... 149
Insurance market size and growth 149
Growth in the protection-related life insurance market has slowed since 2008 .. 149
Distribution share of banks 150
Bancassurance provision rates, operating models and partnerships . 151
Risk life insurance .. 151
Captive underwriters belonging to the three major financial groups are dominant in this market .. 151
Four independent savings banks founded Frende Forsikring as a joint venture in 2007 ... 151
Several independent savings banks have chosen to co-operate with Gjensidige .. 151
Critical illness insurance . 154
Norway’s three major financial groups also occupy a strong position in this bancassurance sector . 154
Income protection insurance . 156
The partnerships in this market are mainly the same as those for critical illness insurance ... 156
Performance of key bancassurance underwriters 158
Vital Forsikring has enjoyed particularly rapid growth in the group life insurance market ... 158
14.0 POLAND ... 159
Banks and other lending institutions covered ... 159
Introduction to the banking sector . 159
Eight of the top ten banking institutions by number of retail customers are owned by foreign parents... ... 159
... and the Polish government maintains a significant stake in the largest bank, PKO Bank Polski ... 159
Poland’s banking sector is characterised by significant merger and acquisition activity... .. 159
... with further changes in market structure likely to occur in future years ... 160
While comparatively strong, Poland’s banks are not immune to factors in the wider eurozone. 160
Insurance market size and growth 160
Gross written premiums for protection-related life insurance have risen consistently in recent years ... 160
Distribution share of banks 161
A rising share of sales of group life insurance policies has brought bancassurers to the fore ... 161
The latest data indicates that, by value, investment-related policies are the largest bancassurance product ... 162
Bancassurance provision rates, operating models and partnerships . 162
Risk life insurance .. 162
Risk life insurance is promoted by a minority of banking institutions surveyed... 162
... although one of these is PKO Bank Polski, the largest retail bank in Poland . 163
At least one distribution relationship is determined by an international bancassurance alliance ... 163
Several sizeable banking institutions do not market risk life insurance ... 163
Critical illness insurance . 165
Just one banking entity was found to offer critical illness insurance in Poland ... 165
Income protection insurance . 165
Income protection insurance has not yet been introduced as a bancassurance product ... 165
Performance of key bancassurance underwriters 167
Europa and Nordea ?ycie increased their market share most significantly between 2006 and 2010 ... 167
15.0 PORTUGAL .. 168
Banks and other lending institutions covered ... 168
Introduction to the banking sector . 168
Insurance market size and growth 168
Gross written premiums for protection-related life insurance peaked at around EUR 1.12 billion in 2009 168
Distribution share of banks 170
Banks are almost completely dominant in the distribution of life insurance in Portugal .. 170
Bancassurance provision rates, operating models and partnerships . 170
Risk life insurance .. 170
Nine captive underwriters and three joint venture underwriters are active in this market... 170
... with other types of product provider limited to partnerships that tend to be relatively small ... 171
Crédit Agricole entered into its bancassurance joint venture with Banco Espírito Santo in 2006 .. 171
The final cost to CNP of its deal with Barclays will play out over 12 years following its commencement .. 171
Critical illness insurance . 174
A cancer insurance policy specifically for females is available from two banking institutions . 174
Income protection insurance . 176
Three banking institutions have introduced short-term income protection insurance policies 176
Performance of key bancassurance underwriters 178
Fidelidade Mundial and Ocidental Vida have achieved consistent growth in their market share ... 178
16.0 ROMANIA . 179
Banks and other lending institutions covered ... 179
Introduction to the banking sector . 179
Insurance market size and growth 180
Between 2006 and 2010, protection-related life insurance is likely to have grown by around three quarters ... 180
Distribution share of banks 181
Bancassurance provision rates, operating models and partnerships . 181
Risk life insurance .. 181
Three captive underwriters are apparent in the market for risk life cover sold by banks 181
BCR Asigurari, owned by Vienna Insurance Group, benefits from its tie with Banca Comerciala Romana .. 181
No non-captive underwriter holds more than two bancassurance relationships in this arena 182
Several sizeable banking institutions do not market risk life insurance ... 182
ERGO’s link with UniCredit ?iriac Bank is part of a wider multi-country bancassurance agreement . 184
Critical illness insurance and income protection insurance . 184
Neither policy has been introduced as a bancassurance product in Romania ... 184
Performance of key bancassurance underwriters 184
BCR Asigurari de Viata closed the gap on the market leader, ING Asigurari de Viata, in 2010 184
17.0 RUSSIA . 185
Banks and other lending institutions covered ... 185
Introduction to the banking sector . 185
Banks owned ultimately by the state continue to exert a strong influence on Russia’s banking sector... .. 185
... with several foreign banks having decided to exit the market .. 186
Russia’s banking sector has changed very significantly in recent years... .. 186
... with a new wave of merger and acquisition activity in evidence since 2008... 186
... and with further changes in the market structure likely to occur .. 187
In spite of its problems, there is plenty of scope for the Russian retail banking market to grow. 187
Insurance market size and growth 187
The value of the market for protection-related life insurance has fluctuated up and down in recent years ... 187
Distribution share of banks 189
The primary bancassurance focus of Russian banks lies on creditor and motor insurance .. 189
Bancassurance provision rates, operating models and partnerships . 189
Risk life insurance .. 189
Stand-alone risk life insurance is rarely marketed by Russian banks . 189
The bancassurance strategy of Sberbank is likely to evolve in future . 189
Critical illness and income protection insurance ... 191
Performance of key bancassurance underwriters 191
Most ‘life insurance’ distributed by banks is actually creditor insurance .. 191
18.0 SPAIN 192
Banks and other lending institutions covered ... 192
Introduction to the banking sector . 192
The end of the decade saw a raft of mergers amid general economic uncertainty… 192
…with more mergers and state take-overs expected .. 193
Insurance market size and growth 193
The market size is boosted by the substantial value of funeral expenses insurance . 193
Distribution share of banks 195
While still dominant, the share of banks in total life insurance has retreated slightly in recent years... .. 195
... although they remain powerful in the market for individual risk life insurance . 195
Bancassurance provision rates, operating models and partnerships . 196
Risk life insurance .. 196
Risk life insurance policies are sold by close to three quarters of institutions investigated... .. 196
…and captive underwriters claim four of the top eight places by weighted share of partnerships . 196
The most prominent non-captive underwriter in this sphere is MAPFRE 197
Well over 20 banks utilise joint venture underwriters for risk life insurance... .. 197
…although Spain’s evolving banking market means that the future of many of these is uncertain ... 197
In addition to its co-ownership of BanSabadell Vida, Zurich also holds four other distribution deals . 198
…while a significant number of banks still maintain captive underwriters ... 198
Critical illness insurance . 200
Very few banks in Spain offer critical illness insurance... . 200
Income protection insurance . 202
... and the rate of provision of income protection insurance is only slightly higher .. 202
Short-term policies are offered by six relatively minor banking institutions . 202
Performance of key bancassurance underwriters 204
Key bancassurance underwriters control over one third of the total insurance market in Spain 204
19.0 SWEDEN ... 207
Banks and other lending institutions covered ... 207
Introduction to the banking sector . 207
In 2011, SBAB received permission to commence banking operations . 207
Swedbank either owns or co-operates closely with the majority of local savings banks 207
Sweden’s banking sector remains in relatively good health 208
Insurance market size and growth 208
Gross written premiums for protection-related life insurance have declined consistently in recent years . 208
A small but growing market exists for critical illness and income protection insurance .. 208
Distribution share of banks 209
Bancassurance provision rates, operating models and partnerships . 210
Risk life insurance .. 210
Swedbank Försäkring is used as an exclusive provider by the majority of local savings banks... . 210
... in a bancassurance market that is largely dominated by captive underwriters... 210
... albeit with one deal attributable to each of four non-captive competitors 210
Critical illness insurance . 210
Only one banking institution markets any form of critical illness insurance . 210
Income protection insurance . 213
Provision rates for income protection insurance are almost as high as those for risk life cover . 213
Cardif Nordic benefits from partnerships with Swedbank and most local savings banks ... 213
Most policies provide long-term cover paying up to 90% of the customer’s income in case of illness .. 213
Performance of key bancassurance underwriters 215
On a combined basis, bancassurers hold over 40% of Sweden’s total life insurance market ... 215
20.0 SWITZERLAND 216
Banks and other lending institutions covered ... 216
Introduction to the banking sector . 216
The Swiss banking system can be segmented into four broad categories . 216
Perceived as ‘safe havens’, the cantonal banks have increased their market share in recent years 217
The Clientis and Raiffeisen groupings are also significant in Swiss retail banking . 217
Postfinance is allowed to operate without a regular banking licence ... 217
Insurance market size and growth 217
The Swiss market for protection-related life insurance is largely mature 217
Distribution share of banks 218
Bancassurance provision rates, operating models and partnerships . 219
Risk life insurance .. 219
A substantial proportion of Swiss banks offer risk life insurance . 219
AXA Winterthur and Swiss Life hold relationships with some of the largest banks in Switzerland 219
The Raiffeisen banking group has proved to be an effective distribution channel for life insurance .. 219
Schweizerische Mobiliar is also a significant product provider in this field .. 219
Some banks offer investment-related life insurance policies that incorporate a protection element .. 219
Critical illness insurance . 220
Swiss banks are not active in the distribution of stand-alone critical illness insurance ... 220
Income protection insurance . 222
Helvetia’s relationship with the Raiffeisen banking group also extends to income protection insurance ... 222
Performance of key bancassurance underwriters 224
21.0 TURKEY 225
Banks and other lending institutions covered ... 225
Introduction to the banking sector . 225
Insurance market size and growth 225
The value of Turkish protection-related life insurance is set to exceed EUR 1 billion in 2011 225
Distribution share of banks 227
While already dominant, Turkish banks extended their distribution share in life insurance in 2010... 227
Bancassurance provision rates, operating models and partnerships . 227
Risk life insurance .. 227
Apart from Aviva, the most prominent underwriters for this product mainly act in a captive capacity 227
Banks with no arrangement for risk life insurance are mainly smaller institutions .. 228
MetLife has entered into a 15-year distribution partnership with Denizb
