Life Bancassurance in Europe: Investment-Related Life Insurance and Retirement Savings

Finaccord, November 2011

Finaccord's report titled Life Bancassurance in Europe: Investment-Related Life Insurance and Retirement Savings offers fresh and valuable insights into the distribution by banks and other lending institutions of these types of product across 20 European countries.

Drawing on a survey of nearly 1,200 banking entities, the study finds that 48.6% offer at least one form of investment-related life insurance or retirement savings product, giving a total of over 1,000 initiatives. Hence, given that the aggregate market for investment-related life insurance and retirement savings across the 20 countries was worth around EUR 635.9 billion in premiums in 2010, it is clear that banking institutions can intermediate a significant volume of business in these sectors, especially as they are the dominant distribution channel in many countries.

In addition to identifying schemes for the distribution of investment-related life insurance and retirement savings 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 product providers. It also calculates the weighted share of partnerships of the providers involved, thereby specifying not only which competitors hold which partnerships but also illustrating which competitors hold the most significant distribution deals.

KEY FINDINGS

Key findings from the executive summary include:

- an analysis of the share of ultimate holding companies of bancassurance partnerships for investment-related life insurance and retirement savings, weighted by customer numbers and by the approximate value of premiums distributed through the bank channel in each country, reveals that CNP Assurances, Crédit Agricole, Crédit Mutuel, BNP Paribas and Intesa Sanpaolo are the leading European groups by this measure;

- given that AXA and Société Générale also rank among the top eight groups, the success of French bancassurers both in their domestic market and elsewhere in Europe is apparent;

- the fastest growth in the underlying markets for investment-related life insurance and retirement savings between 2006 and 2010 came in Turkey, where premiums rose by 37.1% a year on average, followed by Romania and Russia, with compound annual increases of 18.5% and 15.6%, respectively;

- more than 75% of the banking institutions researched in Spain were distributing investment-related life insurance at the time of the research, but this figure fell to below 5% in Russia..

WHO SHOULD BUY THIS REPORT

The research can be used by:

1. Insurance providers and investment managers:
this study is a uniquely comprehensive guide to a major segment within Europe's bancassurance market that can be used to identity partnership opportunities and to monitor competitor activity;

2. Banks and other lending institutions:
the research will help banking entities to understand how their bancassurance strategy compares to that of other comparable institutions both in their domestic market and across Europe as a whole;

3. Management consultancies:
are you helping an insurance company, investment manager or bank with its bancassurance strategy in the specific field of investment-related life insurance or retirement savings? Understand the current status of bank distribution of these two product categories in Europe, saving time and effort on researching the subject yourself;

4. Investment banks and private equity companies:
with banking institutions under financial pressure in many European countries, this research may be useful to understanding where there is scope for them to divest captive or joint venture providers in order to raise capital.

0.0 EXECUTIVE SUMMARY

The market value across the 20 countries amounted to around EUR 635.9 billion in 2010
Growth rates and levels of contribution per capita vary enormously by country
Bancassurance is almost totally dominant as a channel for these products in Finland and Portugal
Nearly a half of entities surveyed have a partnership for one or both of these products...
... rising to well over a half if specialised lenders are excluded from the analysis
The Spanish market is distinguished by the prevalence of joint venture underwriters
Five of the eight leading providers of these products across Europe as a whole are bank-owned...
... with CNP Assurances and Crédit Agricole the market leaders by weighted share of partnerships

1.0 INTRODUCTION

What is this report about?
Distribution partnerships with banks and other lending institutions constitute the focus of this report
Rationale
Nearly half of banking organisations surveyed sell at least one type of the products covered by this report
Methodology
Survey of banks and other lending institutions
Market data
Definitions
Investment-related life insurance
Retirement savings
Weighted provider share of partnerships
Operating models
Abbreviations and exchange rates
Finaccord

2.0 EUROPEAN OVERVIEW

Introduction
Market analysis – investment-related life insurance and retirement savings
Contributions to retirement savings policies are gaining ground on investment-related life insurance
Compound annual growth rates exceeded 10% in five countries between 2006 and 2010
Finland has the highest level of savings per capita, using these types of policy
Market analysis – investment-related life insurance
Over EUR 360 billion were paid into investment-related life insurance policies in 2010
This market tends to be largest where retirement savings vehicles are under-developed
Market analysis – retirement savings
Retirement savings policies attracted EUR 275 billion of premiums and equivalent revenue in 2010
The UK market makes up nearly 40% of the European total...
...though three other countries recorded higher premiums per capita in 2010
The value of contributions in six developing markets doubled between 2006 and 2010
Bancassurance analysis
Provision rates and operating models for investment-related life insurance
The provision rate for investment-related life insurance through banks is highest in Spain
Use of a single, external product provider constitutes the most regularly used operating model...
...though captives are preferred in several countries
Financial advice can be provided without needing multiple insurance partners
The captive model is most common on a weighted basis...
... simply because larger institutions are more likely to have established captive insurance providers
Provision rates and operating models for retirement savings
The average provision rate for retirement savings is higher than that for investment-related life insurance
As with investment-related life insurance, single external product providers are used most often
Captive providers are again more prominent on a weighted basis
Distribution share of bancassurance for investment-related life and retirement savings
Finaccord's analysis illustrates the influence of bancassurance on a standardised basis
The bancassurance channel accounts for more than 80% of business in two countries...
...but less than 20% in five others
Pan-European bancassurance groups
Six of the eight leading bancassurance groups in Europe for these product classes originate from France...
The weakness of bancassurance as a channel in the UK means that UK-only providers miss the top tier
The strength of CNP Assurances in France is boosted by its joint ventures in Italy, Portugal and Spain

3.0 AUSTRIA

Banks and other lending institutions covered
Introduction to the banking sector
The banking system can be divided according to how banks operate at the national, regional and local level
Austrian banks are expected to raise EUR 2.9 billion to meet new capital requirements
Insurance market size and growth
Austria's market delivered little growth between 2006 and 2010
Distribution share of banks
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
More than two in three banks offer investment-related life insurance in Austria
Erste Bank's bancassurance partnership was renewed for another 15 years in 2008
The Raiffeisen Bankengruppe has also entered into a long-term strategic relationship
Both ERGO and Generali have bought majority stakes in major bancassurance providers in recent years
Excluding captive brokers, around 16 competitors work with banks in this market segment
Retirement savings
The provision rate among banking institutions for retirement savings is slightly lower...
... although the operating models and partnerships are largely the same
Performance of key bancassurance underwriters
On a combined basis, bancassurers increased their share of total life insurance between 2006 and 2010

4.0 BELGIUM

Banks and other lending institutions covered
Introduction to the banking sector
Structurally, Belgium's banking and insurance sectors are very closely linked
Dexia's banking and insurance operations were nationalised in October 2011
Insurance market size and growth
Falling sales of individual unit-linked policies and capitalisation bonds cause the overall market to stagnate
Distribution share of banks
Banks are dominant in individual life insurance, especially for single premium contracts
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
All of Belgium's mainstream retail banks offer investment-related life insurance...
…and around half of those do so in conjunction with a captive or joint venture provider
The leading providers of investment-related life insurance include AG Insurance and ING…
…and AXA operates with a number of external banking partners as well as with AXA Bank itself
Many providers are active in this area, but several are limited to having just one distributor bank
Retirement savings
The provision of retirement savings is virtually identical to that of investment-related life cover…
…although three banks make use of different insurance providers for this type of cover…
…and Crédit Mutuel subsidiary BKCP partners with a mix of captive and external underwriters
Performance of key bancassurance underwriters
On a combined basis, the market share in total life insurance of key Belgian bancassurers has plateaued

5.0 CZECH REPUBLIC

Banks and other lending institutions covered
Introduction to the banking sector
The Czech banking sector has remained stable during and in the aftermath of recent financial crises...
...albeit the rate of foreign ownership could lead to significant restructuring
Insurance market size and growth
Rapidly increasing demand for unit-linked insurance has buoyed the Czech life insurance sector
Distribution share of banks
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
A half of the 32 banks and other lending institutions researched offer investment-related life insurance
Product providers include external underwriters, captive underwriters and a single joint venture
Aviva possesses an important relationship with UniCredit Bank in this field
Banking entities not selling investment-related life insurance are mainly specialised lending institutions
Two major relationships are determined by international bancassurance agreements
Retirement savings
Captive pension funds belonging to the two largest banks are most prominent in this market...
...albeit AXA has established useful partnerships for retirement savings with four entities
Performance of key bancassurance underwriters
Among bancassurers, Komercní pojištovna has grown most rapidly in total life insurance

6.0 DENMARK

Banks and other lending institutions covered
Introduction to the banking sector
Seven of the largest ten banking institutions are indigenous to Denmark
The Danish banking sector has changed significantly as a result of the financial crisis...
...and the number of lending institutions is expected to decrease further
However, the four largest Danish banks remain comparatively healthy
Insurance market size and growth
The popularity of unit-linked policies has underpinned the Danish life insurance and pensions market
Distribution share of banks
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
Danish banks focus on selling pension products rather than investment-related life insurance...
Retirement savings
Entities with no arrangement in this arena are mainly specialised lenders, rather than banks
PFA benefits from distribution relationships with at least ten sizeable banking institutions
Two important captive underwriters are ranked second and third by weighted share of partnerships
Performance of key bancassurance underwriters
The market share of total life insurance of Danica Pension fell sharply in 2009 and 2010

7.0 FINLAND

Banks and other lending institutions covered
Introduction to the banking sector
Finland's banking sector is relatively concentrated and dominated by OP-Pohjola and Nordea...
... albeit with competition from a range of other foreign-owned and co-operative / savings banks...
... plus S-Pankki, the banking arms of the S-Group retailing co-operative
The Finnish banking system has a very low exposure to troubles elsewhere in Europe
Insurance market size and growth
Statutory pension insurance accounted for over two thirds of the total market in 2010
Distribution share of banks
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
Investment-related life policies are offered mainly through captive insurance companies...
...although in the context of its use by Sampo Pankki, Mandatum Life is a non-captive
Retirement savings
Retirement savings products are widely offered by the larger banking institutions in Finland...
... usually by means of the same product providers used for investment-related life insurance
Performance of key bancassurance underwriters
The combined market share of competitors with a strong exposure to bancassurance is increasing
OP Henkivakuutus has grown very rapidly in the non-statutory pensions market

8.0 FRANCE

Banks and other lending institutions covered
Introduction to the banking sector
Insurance market size and growth
The French market for investment-related life insurance and retirement savings is Europe's largest...
.... in spite of the fact that contributions to unit-linked policies have fallen sharply in recent years
Distribution share of banks
French banks remain dominant in life insurance in spite of a slight fall in their distribution share since 2006
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
All major retail banks, and even some consumer finance specialists, offer these types of policy...
…with nearly half of all provision being organised through captive providers
As the leading external provider, CNP Assurances benefits from its links with two major banks…
…with captive partners, such as Predica, Cardif and ACM, also prominent in this market
Three banking entities offer products sourced from more than one provider
AXA distributes investment-related life cover through Banque Palatine and Carrefour Bank
Retirement savings
Captive partners are also prominent for retirement savings products…
…albeit external provider CNP Assurances holds the largest weighted share of partnerships
Many distribution partnerships in this field mirror those of investment-related life cover…
…and two small entities boost the presence of BPCE's captive retirement planning subsidiary
Performance of key bancassurance underwriters
The leading three bank-owned insurers all expanded their share of the total life insurance market in 2010

9.0 GERMANY

Banks and other lending institutions covered
Introduction to the banking sector
In spite of some consolidation, Germany's banking sector remains comparatively fragmented
Many of the regional public sector banks have suffered during the financial crisis...
... although the savings banks are largely perceived by consumers to be safe institutions
Taken as a whole, the co-operative banks possess the most retail branches in Germany
Insurance market size and growth
Riester and basic pension contracts fuel strong growth in the market for retirement savings products
‘Kapitalversicherung' policies constitute a popular form of saving for many households
Rürup pension contracts are targeted most of all at self-employed customers
Distribution share of banks
Recent evidence suggests the distribution share of banks in investment and pension policies is rising
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
Investment-related life insurance policies are offered quite widely by banking institutions in Germany
Talanx bought out Postbank's equity holding in PB Lebensversicherung in 2007
Commerzbank switched its bancassurance partner after buying Dresdner Bank from Allianz in 2008
Deutsche Bank and Santander Consumer Bank both took steps to extend their deals during 2011
Including all types of provider, over 30 competitors hold relationships with banks in this sector...
... and several significant banking institutions are not distributors of investment-related life insurance
Retirement savings
Retirement savings products of one sort or another are available from over 50% of banks investigated
Partnerships with major banks determine the ranking by weighted share of product providers
Thanks to a previous deal with SEB, AXA is used as one of two providers by Santander Consumer Bank
Some links in place for retirement savings replicate those verified for investment-related life insurance
Performance of key bancassurance underwriters
The bancassurance-focused subsidiaries of Talanx ceded market share between 2006 and 2010

10.0 IRELAND

Banks and other lending institutions covered
Introduction to the banking sector
Six major Irish banks have been reduced to three by the financial crisis...
... with foreign-owned banks making up the field
The Irish League of Credit Unions has the largest customer base, spread across 400 entities
Insurance market size and growth
Ireland's retirement savings market has been bolstered by sales of pension plans for the self-employed
Distribution share of banks
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
Three insurance companies offer investment bonds through the bancassurance channel
Retirement savings
All full-service banks offer retirement savings...
... with partnerships distributed across five providers
Performance of key bancassurance underwriters
Key bancassurance underwriters account for a very significant share of total life and pensions...

11.0 ITALY

Banks and other lending institutions covered
Introduction to the banking sector
Four, or arguably five, retail banking groups lay claim to a genuinely nationwide network…
… although these are being challenged by an array of ambitious regional competitors…
… including the banche di credito cooperative and casse Raiffeisen…
… as well as several insurer-owned banks and banks falling under foreign ownership
Italy also plays host to a considerable number of specialised lending institutions
Italy's banking groups typically encapsulate a number of local or regional banking brands
Insurance market size and growth
The market for investment-related life insurance and retirement savings hit its highest ever level in 2010
Distribution share of banks
Banks are most dominant as distributors in the market for unit-linked life insurance
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
A comparatively high proportion of banking institutions work with one more than product provider
Both Intesa Sanpaolo and UniCredit have re-configured their bancassurance activities in recent years
In total, around 12 providers of investment-related life insurance are classifiable as captive providers...
... and 11 as joint ventures
Other providers with a significant presence include Arca, Assimoco, Eurovita, UNIQA and Zurich
Unipol has owned over 60% of the equity capital of Arca since June 2010
Several firms are only ever used as one of a panel of providers of investment-related life policies
Most institutions with no involvement in this area are classifiable as specialised lenders
Retirement savings
Providers of retirement savings include both insurance companies and investment management firms...
... with the latter including Pioneer, in the case of UniCredit
Once again, product providers include a significant number of captive and joint venture entities...
... although over 20 external companies possess at least one exclusive partnership in this domain
Performance of key bancassurance underwriters
Over 30 bank-owned captive or joint venture underwriters are active in the Italian life insurance market...
... although fewer compete in the pension funds sector

12.0 NETHERLANDS

Banks and other lending institutions covered
Introduction to the banking sector
The Dutch state exerts a greater influence on the retail banking sector than foreign institutions...
…and is likely to continue to do so until 2014 at least
ING has reshaped itself greatly in recent years
Several lending institutions have closed to new business
Insurance market size and growth
The Dutch market for investment-related life insurance and retirement savings is relatively large but mature
Distribution share of banks
The share of banks in the retirement savings market fell back slightly between 2008 and 2010
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
Captive and joint venture underwriters are almost completely dominant in this market...
... albeit Friesland Bank utilises a captive broker as opposed to a captive underwriter
Banking entities not selling investment-related life insurance are mainly specialised lending institutions
Retirement savings
Arrangements for retirement savings very similar to those for investment-related life insurance
Performance of key bancassurance underwriters
Underwriters owned wholly or in part by banks account for over one third of total life insurance

13.0 NORWAY

Banks and other lending institutions covered
Introduction to the banking sector
Four, or arguably five of the ten lending institutions are owned by foreign parents
Two savings banks groups play an important role in Norway's banking sector
International financial crises have had a limited impact on Norway's banking market
Insurance market size and growth
Norway's retirement savings market is composed primarily of group pension insurance
Distribution share of banks
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
Norwegian banks favour marketing retirement savings products over investment-related life insurance
Retirement savings
Captive providers within the large financial groups dominate the bancassurance sector...
... albeit Frende Forsikring is used by several independent savings banks...
... and Gjensidige Pensjonsforsikring by two others
Performance of key bancassurance underwriters
Key bancassurers hold a combined market share of over 50% in individual endowment insurance...
... and over 90% in individual pension insurance...
... but are pegged back at around one third of the market in group pension insurance

14.0 POLAND

Banks and other lending institutions covered
Introduction to the banking sector
Eight of the top ten banking institutions by number of retail customers are owned by foreign parents...
... and the Polish government maintains a significant stake in the largest bank, PKO Bank Polski
Poland's banking sector is characterised by significant merger and acquisition activity...
... with further changes in market structure likely to occur in future years
While comparatively strong, Poland's banks are not immune to factors in the wider eurozone
Insurance market size and growth
The value of investment-related life insurance hit a five-year high in 2008
Distribution share of banks
A rising share of sales of group life insurance policies has brought bancassurers to the fore
The latest data indicates that, by value, investment-related policies are the largest bancassurance product
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
Investment-related life policies are available from 20 of the banking institutions investigated
By weighted share of partnerships, Allianz is the leading non-captive provider...
... and ING Zycie the most prominent captive
Five banks make use of more than one provider for investment-related life insurance
Bank Zachodni WBK's joint venture with Aviva was established in 2008
At least one distribution relationship is determined by an international bancassurance alliance
Europa's gross written premiums expanded rapidly between 2006 and 2010
Several sizeable banking institutions do not market any form of investment-related life insurance
Retirement savings
Often, the retirement savings products offered by banks are either OFEs or IKEs
Poland's largest bank has established two joint ventures in this domain
mBank collaborates with four product providers for retirement savings
Performance of key bancassurance underwriters
Europa and Nordea Zycie increased their market share most significantly between 2006 and 2010

15.0 PORTUGAL

Banks and other lending institutions covered
Introduction to the banking sector
Insurance market size and growth
Investment-related life insurance is composed primarily of deferred capital insurance policies
The market for PPR and PPR/E contracts expanded rapidly between 2006 and 2010
Distribution share of banks
Banks are almost completely dominant in the distribution of life insurance in Portugal
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
Captive and joint venture underwriters dominate bancassurance distribution of this type of policy...
... with other types of product provider limited to relatively small partnerships
Banking entities not selling investment-related life insurance are mainly specialised lending institutions
Crédit Agricole entered into its bancassurance joint venture with Banco Espírito Santo in 2006
The final cost to CNP of its deal with Barclays will play out over 12 years following its commencement
Retirement savings
Arrangements for retirement savings are largely the same as those for investment-related life insurance...
... albeit CajaDuero offers the latter product class but not the former
Performance of key bancassurance underwriters
Fidelidade Mundial and Ocidental Vida have achieved consistent growth in their market share

16.0 ROMANIA

Banks and other lending institutions covered
Introduction to the banking sector
Insurance market size and growth
Investment-related life insurance and retirement savings have advanced rapidly in recent years
Distribution share of banks
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
Comparatively few banking institutions in Romania sell investment-related life insurance
BCR Asigurari, owned by Vienna Insurance Group, benefits from its tie with Banca Comerciala Romana
Many sizeable banking institutions do not market investment-related life insurance
AEGON's link with Banca Transilvania dates back to an agreement forged in 2007
Citibank began marketing ING's Academica and Regal policies in 2010
Retirement savings
Arrangements for retirement savings are largely the same as those for investment-related life insurance
Performance of key bancassurance underwriters
BCR Asigurari de Viata closed the gap on the market leader, ING Asigurari de Viata, in 2010

17.0 RUSSIA

Banks and other lending institutions covered
Introduction to the banking sector
Banks owned ultimately by the state continue to exert a strong influence on Russia's banking sector...
... with several foreign banks having decided to exit the market
Russia's banking sector has changed very significantly in recent years...
... with a new wave of merger and acquisition activity in evidence since 2008...
... and with further changes in the market structure likely to occur
In spite of its problems, there is plenty of scope for the Russian retail banking market to grow
Insurance market size and growth
Most of the market is likely to be composed of contributions to non-state pension funds (NPFs)
Distribution share of banks
The primary bancassurance focus of Russian banks lies on creditor and motor insurance
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
Few banking entities promote any form of investment-related life insurance
The bancassurance strategy of Sberbank is likely to evolve in future
Retirement savings
Around a quarter of major banking institutions promote non-state pension funds...
... in many cases through their own captive vehicles
In total, a dozen NPFs possess bank distribution partnerships...
... although a number of significant banking institutions have not yet entered this market
Performance of key bancassurance underwriters
Most ‘life insurance' distributed by banks is actually creditor insurance

18.0 SPAIN

Banks and other lending institutions covered
Introduction to the banking sector
The end of the decade saw a raft of mergers amid general economic uncertainty…
…with more mergers and state take-overs expected
Insurance market size and growth
Investment-related life insurance is composed primarily of endowments and unit-linked policies
The market for PPA contracts expanded rapidly between 2006 and 2010
Distribution share of banks
While still dominant, the share of banks in total life insurance has retreated slightly in recent years...
... although they remain powerful in the market for individual single premium policies
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
By weighted share of partnerships, the three leading providers are all insurers owned outright by banks...
…while MAPFRE is the most prominent external provider of this type of insurance...
…followed by Zurich, to which four significant bancassurance relationships were attributable
The Spanish market is also populated by a large number of smaller captive insurance providers...
... and numerous joint ventures...
…although Spain's evolving banking market means that the future of many of these is uncertain
Retirement savings
Arrangements for retirement savings are virtually the same as those for investment-related life insurance
Performance of key bancassurance underwriters
Key bancassurance underwriters control over one third of the total insurance market in Spain

19.0 SWEDEN

Banks and other lending institutions covered
Introduction to the banking sector
In 2011, SBAB received permission to commence banking operations
Swedbank either owns or co-operates closely with the majority of local savings banks
Sweden's banking sector remains in relatively good health
Insurance market size and growth
Contributions to traditional and unit-linked capital insurance policies have caused the market to grow
Distribution share of banks
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
Captive subsidiaries of the large banks are dominant in the bancassurance sector...
... with only two product providers acting as non-captive partners
Banking entities with no involvement in this sector are mainly specialised lending institutions
Retirement savings
The partnerships for retirement savings are nearly identical to those for investment-related life insurance
Performance of key bancassurance underwriters
On a combined basis, bancassurers hold over 40% of Sweden's total life insurance market

20.0 SWITZERLAND

Banks and other lending institutions covered
Introduction to the banking sector
The Swiss banking system can be segmented into four broad categories
Perceived as ‘safe havens', the cantonal banks have increased their market share in recent years
The Clientis and Raiffeisen groupings are also significant in Swiss retail banking
Postfinance is allowed to operate without a regular banking licence
Insurance market size and growth
The total value of the Swiss market grew modestly between 2006 and 2010
Distribution share of banks
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
External underwriters dominate bancassurance distribution of this type of policy in Switzerland
Schweizerische Mobiliar has established relationships with several cantonal and savings banks
Zurich launched a major new bancassurance partnership with Credit Suisse in October 2010
Several quite sizeable banking institutions do not offer investment-related life insurance
Retirement savings
Swiss Life has access to the largest number of banking customers for retirement savings products
Four other product providers are reasonably significant in this sphere...
... and the potential exists for further relationships with banks currently lacking a partner
Performance of key bancassurance underwriters

21.0 TURKEY

Banks and other lending institutions covered
Introduction to the banking sector
Insurance market size and growth
Contributions to individual pension contracts have grown rapidly since their introduction in 2003
Distribution share of banks
While already dominant, Turkish banks extended their distribution share in life insurance in 2010
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
Comparatively few Turkish banks distribute investment products in a life insurance ‘wrapper'
Vakif Emeklilik holds a distribution partnership with Tekstil Bank in addition to its parent Vakifbank
Banks with no arrangement for investment-related life insurance include several significant institutions
Retirement savings
More banks offer retirement savings products than investment-related life insurance
Several bank-owned pension companies also act as non-captive providers to separate banks...
... including Garanti Emeklilik ve Hayat as well as Anadolu Hayat Emeklilik and Vakif Emeklilik
Banks with no retirement savings proposition are generally smaller institutions
MetLife has entered into a 15-year distribution partnership with Denizbank
Performance of key bancassurance underwriters
Bank-owned captives and joint ventures accounted for over 80% of total life insurance in 2010

22.0 UNITED KINGDOM

Banks and other lending institutions covered
Introduction to the banking sector
The crisis of 2007 onwards forced many institutions to close, merge or be nationalised...
... with Santander as the only bank to emerge much stronger from the turmoil...
... while the Nationwide and the Yorkshire rescued several building societies in trouble
New entrants are appearing, with 700 branches scheduled to change hands at the time of publication
Insurance market size and growth
In aggregate, the UK's investment-related life insurance and retirement savings market peaked in 2007
Distribution share of banks
The distribution share of banks and building societies in life insurance appears to be stable...
... although for personal and stakeholder pensions, it has fallen back to the margins in recent years
Bancassurance provision rates, operating models and partnerships
Investment-related life insurance
In the UK, the sale of investment bonds requires financial advice...
...which means that some leading banks do not believe that they can support this product
The captives of Lloyds Banking Group and HSBC have the largest weighted share of partnerships...
... followed by Aviva, AXA Wealth and Legal & General among external underwriters
Smaller partnerships are scattered across a dozen independent financial advisers
Retirement savings
Pension products sold by banks polarise between high-value SIPPs and low-value stakeholder pensions
Over a quarter of banks and other institutions offer some form of pension
AJ Bell, a specialist provider of SIPPs, holds partnerships with three major banking networks
Legal & General's major relationship is limited to stakeholder pensions only
In 2010, Bank of Scotland and Halifax stopped marketing stakeholder pensions
Skipton Financial Services is used by two external building societies as well as by the Skipton itself
Performance of key bancassurance underwriters
Bank-owned insurance providers account for a very low combined share of total life insurance

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY

Expenditure allocated to retirement savings products has grown slightly more quickly than that for investment-related life insurance
In eight countries, banks hold a distribution share of more than 60% for these two product categories combined
Five of the eight leading product providers by weighted share of partnerships are bank-owned and six originate from France

1.0 INTRODUCTION

Banks and other lending institutions contacted by Finaccord, segmented by country and type

2.0 EUROPEAN OVERVIEW

Gross written premiums for investment-related life insurance and retirement savings in Europe, 2006-2010
Provision rates for investment-related life insurance through bancassurance in Europe, 2011
Operating models (unweighted) used for investment-related life insurance in Europe, 2011
Operating models (unweighted) used for investment-related life insurance in Europe, 2011 (data)
Operating models (weighted) used for investment-related life insurance in Europe, 2011
Operating models (weighted) used for investment-related life insurance in Europe, 2011 (data)
Provision rates for retirement savings through bancassurance in Europe, 2011
Operating models (unweighted) used for retirement savings in Europe, 2011
Operating models (unweighted) used for retirement savings in Europe, 2011 (data)
Operating models (weighted) used for retirement savings in Europe, 2011
Operating models (weighted) used for retirement savings in Europe, 2011 (data)
Distribution share of bancassurance for investment-related life insurance and retirement savings in Europe, 2011
Weighted group share of bancassurance partnerships for investment-related life insurance and retirement savings, re-weighted by country bancassurance market size, Europe, 2010

3.0 AUSTRIA

Gross written premiums for investment-related life insurance and retirement savings in Austria, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in Austria, 2006-2010 (data)
Bancassurance provision of investment-related life insurance in Austria, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in Austria, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance of key bancassurance underwriters in Austria, 2006-2010 (data)

4.0 BELGIUM

Gross written premiums for investment-related life insurance and retirement savings in Belgium, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in Belgium, 2006-2010 (data)
Distribution share of banks in total life, individual life and group life insurance in Belgium, 2006-2009 (data)
Bancassurance provision of investment-related life insurance in Belgium, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in Belgium, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance of key bancassurance underwriters in Belgium, 2006-2010 (data)

5.0 CZECH REPUBLIC

Gross written premiums for investment-related life insurance and retirement savings in the Czech Republic, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in the Czech Republic, 2006-2010 (data)
Bancassurance provision of investment-related life insurance in the Czech Republic, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in the Czech Republic, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance of key bancassurance underwriters in the Czech Republic, 2006-2010 (data)

6.0 DENMARK

Gross written premiums for investment-related life insurance and retirement savings in Denmark, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in Denmark, 2006-2010 (data)
Bancassurance provision of investment-related life insurance in Denmark, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in Denmark, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance of key bancassurance underwriters in Denmark, 2006-2010 (data)

7.0 FINLAND

Gross written premiums for investment-related life insurance and retirement savings in Finland, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in Finland, 2006-2010 (data)
Bancassurance provision of investment-related life insurance in Finland, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in Finland, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance of key bancassurance underwriters in Finland, 2006-2010 (data)
Market share in total non-statutory pensions of key bancassurance underwriters in Finland, 2006-2010 (data)

8.0 FRANCE

Gross written premiums for investment-related life insurance and retirement savings in France, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in France, 2006-2010 (data)
Distribution share of banks in total life insurance in France, 2006-2010 (data)
Bancassurance provision of investment-related life insurance in France, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in France, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance of key bancassurance underwriters in France, 2009-2010 (data)

9.0 GERMANY

Gross written premiums for investment-related life insurance and retirement savings in Germany, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in Germany, 2006-2010 (data)
Bancassurance provision of investment-related life insurance in Germany, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in Germany, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance of key bancassurance underwriters in Germany, 2006-2010 (data)

10.0 IRELAND

Gross written premiums for investment-related life insurance and retirement savings in Ireland, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in Ireland, 2006-2010 (data)
Bancassurance provision of investment-related life insurance in Ireland, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in Ireland, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance and pensions of key bancassurance underwriters in Ireland, 2006-2009 (data)

11.0 ITALY

Gross written premiums for investment-related life insurance and retirement savings in Italy, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in Italy, 2006-2010 (data)
Distribution share of bancassurance total life, 'class 1' life and unit-linked life insurance, and capitalisation bonds and pension funds in Italy, 2006-2010 (data)
Bancassurance provision of investment-related life insurance in Italy, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in Italy, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance of key bancassurance underwriters in Italy, 2006-2010 (data)
Market share in pension funds of key bancassurance underwriters in Italy 2006-2010 (data)

12.0 NETHERLANDS

Gross written premiums for investment-related life insurance and retirement savings in the Netherlands, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in the Netherlands, 2006-2010 (data)
Distribution share of banks in total individual life and pension insurance in the Netherlands, 2008 and 2010 (data)
Bancassurance provision of investment-related life insurance in the Netherlands, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in the Netherlands, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance of key bancassurance underwriters in the Netherlands, 2006-2009 (data)

13.0 NORWAY

Gross written premiums for investment-related life insurance and retirement savings in Norway, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in Norway, 2006-2010 (data)
Bancassurance provision of investment-related life insurance in Norway, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in Norway, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in individual endowment insurance of key bancassurance underwriters in Norway, 2006-2010 (data)
Market share in individual pension insurance of key bancassurance underwriters in Norway, 2006-2010 (data)
Market share in group pension insurance of key bancassurance underwriters in Norway, 2006-2010 (data)

14.0 POLAND

Gross written premiums for investment-related life insurance and retirement savings in Poland, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in Poland, 2006-2010 (data)
Distribution share of banks in total life insurance and assorted segments in Poland, 2006-2010 (data)
Bancassurance provision of investment-related life insurance in Poland, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in Poland, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance of key bancassurance underwriters in Poland, 2006-2010 (data)

15.0 PORTUGAL

Gross written premiums for investment-related life insurance and retirement savings in Portugal, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in Portugal, 2006-2010 (data)
Distribution share of banks in total life insurance in Portugal, 2008-2010 (data)
Bancassurance provision of investment-related life insurance in Portugal, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in Portugal, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance of key bancassurance underwriters, 2006-2009 (data)

16.0 ROMANIA

Gross written premiums for investment-related life insurance and retirement savings in Romania, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in Romania, 2006-2010 (data)
Bancassurance provision of investment-related life insurance in Romania, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in Romania, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance of key bancassurance underwriters in Romania, 2006-2010 (data)

17.0 RUSSIA

Gross written premiums for investment-related life insurance and retirement savings in Russia, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in Russia, 2006-2010 (data)
Bancassurance provision of investment-related life insurance in Russia, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in Russia, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance of key bancassurance underwriters in Russia, 2006-2010 (data)

18.0 SPAIN

Gross written premiums for investment-related life insurance and retirement savings in Spain, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in Spain, 2006-2010 (data)
Distribution share of banks in total life insurance in Spain, 2006-2009 (data)
Distribution share of banks in individual and group investment-related life insurance in Spain, 2006-2009 (data)
Bancassurance provision of investment-related life insurance in Spain, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in Spain, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life and non-life insurance of key bancassurance underwriters still active and mentioned / covered by the research in in Spain, 2008-2010 (data)
Market share in total life and non-life insurance of key bancassurance underwriters no longer active and / or not mentioned / covered by the research in in Spain, 2008-2010 (data)

19.0 SWEDEN

Gross written premiums for investment-related life insurance and retirement savings in Sweden, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in Sweden, 2006-2010 (data)
Bancassurance provision of investment-related life insurance in Sweden, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in Sweden, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance of key bancassurance underwriters in Sweden, 2006-2010 (data)

20.0 SWITZERLAND

Gross written premiums for investment-related life insurance and retirement savings in Switzerland, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in Switzerland, 2006-2010 (data)
Bancassurance provision of investment-related life insurance in Switzerland, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of investment-related life insurance in Switzerland, 2011: provision rate, operating models and weighted provider share of partnerships

21.0 TURKEY

Gross written premiums for investment-related life insurance and retirement savings in Turkey, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in Turkey, 2006-2010 (data)
Distribution share of banks in life insurance and pensions in Turkey, 2009 and 2010 (data)
Bancassurance provision of investment-related life insurance in Turkey, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in Turkey, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance of key bancassurance underwriters in Turkey, 2006-2010 (data)

22.0 UNITED KINGDOM

Gross written premiums for investment-related life insurance and retirement savings in the UK, 2006-2010
Gross written premiums for investment-related life insurance and retirement savings in the UK, 2006-2010 (data)
Distribution share of banks in life insurance and personal / stakeholder pensions in the UK, 2005, 2007 and 2009 (data)
Bancassurance provision of investment-related life insurance in the UK, 2011: provision rate, operating models and weighted provider share of partnerships
Bancassurance provision of retirement savings in the UK, 2011: provision rate, operating models and weighted provider share of partnerships
Market share in total life insurance of key bancassurance underwriters in the UK, 2006-2010 (data)

- Austria
- Belgium
- Czech Republic
- Denmark
- Finland
- France
- Germany
- Ireland
- Italy
- Netherlands
- Norway
- Poland
- Portugal
- Romania
- Russia
- Spain
- Sweden
- Switzerland
- Turkey
- United Kingdom

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