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Bancassurance in France Life Non-Life and Creditor Insurance Product Image

Bancassurance in France Life Non-Life and Creditor Insurance

  • Published: November 2011
  • Region: France
  • Finaccord

PUBLICATION OVERVIEW

Finaccord's report titled Bancassurance in France: Life, Non-Life and Creditor Insurance is about the distribution of insurance products through banks and other lending institutions in France. Types of insurance considered are: investment-related life insurance and retirement savings; risk life insurance, critical illness insurance and income protection insurance; accident insurance, medical expenses insurance and health / hospital cash plans; personal motor insurance and household insurance; and creditor insurance for mortgages, consumer finance and credit cards.

Based on a survey of 75 organisations, it identifies 295 bancassurance distribution initiatives across these types of insurance, and highlights the operating models and product providers used in the vast majority of cases. Moreover, it analyses these bancassurance agreements in terms of ‘weighted partnerships' which take into account the size of the retail customer base of the banking institutions distributing these policies, thereby differentiating between the most important relationships and those that are comparatively minor.

In addition, with the exception of creditor insurance, READ MORE >

0.0 EXECUTIVE SUMMARY

1.0 INTRODUCTION

What is this report about?

Distribution partnerships with banks and other lending institutions constitute the focus of this report

Rationale

Across Europe, over 80% of banking entities surveyed are active in this arena to one extent or another

Methodology

Survey of banks and other lending institutions

Market data

Definitions

Investment-related life insurance

Retirement savings

Risk life insurance

Critical illness insurance

Income protection insurance

Accident insurance

Health / hospital cash plans

Medical expenses insurance

Personal motor insurance

Household insurance

Creditor insurance

Mortgages, consumer finance and credit cards

Weighted provider share of partnerships

Operating models

Abbreviations and exchange rates

Finaccord

2.0 MARKET ANALYSIS

Banks and other lending institutions covered

Introduction to the banking sector

Investment-related life insurance and retirement savings

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

Protection-related life insurance

Insurance market size and growth

France's market for protection-related life insurance is both large and multi-faceted

Distribution share of banks

Bancassurance provision rates, operating models and partnerships

Risk life insurance

More than half of bancassurance partnerships for this type of cover involve a captive underwriter...

…with Predica, Cardif and ACM prominent in the wake of CNP Assurances, the sector leader

Carrefour Bank and La Banque Postale each make use of joint venture insurers

Critical illness insurance

Bank distribution of critical illness cover is virtually absent from the French market…

…and the ‘Plan Triple Sécurité' distributed by American Express is underwritten by ACE

Income protection insurance

The vast majority of French banks offering this cover do so via a captive underwriter…

…although external providers Generali and Intériale Mutuelle are also active in this market

Captive insurers with multiple vendors include Assurances Banque Populaire Vie, Predica, Cardif and ACM

Performance of key bancassurance underwriters

Accident and health insurance

Insurance market size and growth

Health insurance policies can be underwritten by three distinct types of product provider...

... namely specialist health mutuals, provident institutions and mainstream insurers

Premiums paid for GAV policies have reached EUR 547 million since their launch in 2001

Distribution share of banks

French banks continue to make steady progress in non-life insurance

Bancassurance provision rates, operating models and partnerships

Accident insurance

Accident cover is commonly marketed by French banks, normally in the form of ‘GAV' policies...

…with most provision organised on either a captive or joint venture basis

Assurances Banque Populaire IARD is the leading joint venture underwriter for these policies…

…whilst captive insurers Pacifica, Cardif and ACM also prominent in this market

Other captive and joint venture entities include BPCE Assurances, HSBC Assurances and Sogessur

One bank, Crédit Social des Fonctionnaires, makes use of a captive broker (Progretis)

Medical expenses insurance

Medical expenses cover is available from a relatively small minority of French banking entities...

... although these include most of the largest institutions

Many partnerships in force for medical expenses cover mirror those used for accident insurance

External providers identified by the research include Intériale Mutuelle, SMI and SMIP

Health / hospital cash plans

Stand-alone health or hospital cash plans are rarely available from French retail banks...

…although they are from the CIC and Crédit Mutuel networks, which use ACM as a captive insurer

Other competitors distributing through banking partners include ACE, Cardif and MetLife

Performance of key bancassurance underwriters

All bank-owned underwriters increased their share of total non-life insurance in France in 2010...

... although they remain comparatively small players in the overall health insurance sector

Personal motor and household insurance

Insurance market size and growth

Household insurance continues to outgrow personal motor insurance in France

Distribution share of banks

Bancassurers are gaining ground in both motor and household insurance

Bancassurance provision rates, operating models and partnerships

Personal motor insurance

Captive and joint venture underwriters account for over a half of all partnerships identified

Leading underwriters distributing through banks include BPCE Assurances, Pacifica and AVANSSUR

ACM is used by both the CIC and Crédit Mutuel networks

La Banque Postale Assurances IARD is a relatively new entrant to the market

The research also identifies three insurance brokers, including a captive, as being active in this area

Household insurance

Household insurance is available from a third of the banking organisations surveyed

Most banks use the same distribution partnerships for both household and motor insurance…

…although Cetelem uses a separate underwriter for its household insurance proposition

Performance of key bancassurance underwriters

Most bank-owned underwriters made progress in both motor and household insurance in 2010

In these fields, insurers belonging to Crédit Agricole and Crédit Mutuel are the largest

Creditor insurance

Consumer lending market size and growth

Mortgage lending

Mortgage lending balances rose by over EUR 60 billion in 2010 alone...

Non-mortgage lending

... although the non-mortgage lending market levelled off

Credit and other pay later cards

French issuers cancelled a very large number of under-performing accounts during 2010

Creditor insurance provision rates, operating models and partnerships

Creditor insurance linked to mortgages

One way or another, mortgage lenders oblige their borrowers to take out related creditor insurance

CNP Assurances is likely to account for over one third of this market...

... with Cardif and ACM (Assurances Crédit Mutuel) the next most significant competitors

Both Crédit Agricole and Société Générale use a combination of captive and external partners

AXA is the second most prominent insurer that is active primarily on a non-captive basis

Insurance providers outside of the top eight are likely to be limited to a very small market share

Creditor insurance linked to consumer finance

The use of captive insurers is also widespread for loan payment protection insurance

Distribution partnerships for this type of cover typically mirror those of mortgage-related policies…

…although La Banque Postale uses a separate underwriter for its consumer finance proposition...

…and the large number of specialist consumer credit providers results in a more diverse market

In total, approaching 30 legally distinct underwriting entities are active in this arena

Creditor insurance linked to credit cards

Card-related creditor insurance is widely available from French credit card issuers

In this field, the apparent leader by weighted share of partnerships is different...

...and other differences are visible further down the scale

Only three issuers of credit cards were found to have no apparent arrangement in this sector

Creditor insurance risk coverage

Cover against death and permanent disability is universal across all three types of creditor policy

Alternative distribution channels

2010's ‘Loi Lagarde' has paved the way for greater use of alternative distribution channels in France...

... including direct and agency sales by insurance underwriters...

... and dedicated online aggregators such as assurance-emprunteur.com

Cardif has finalised a partnership with SeLoger.com, an online real estate company

APRIL launched an innovative new creditor insurance proposition in June 2011

CBP is another prominent competitor in this arena, with particular expertise in ‘non-standard' risks

Creditor insurance market size, growth and forecast

Mortgage-related policies will continue as the engine for growth in French creditor insurance

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY

Overview of bancassurance provision rates for different types of insurance in France, 2011

1.0 INTRODUCTION

Banks and other lending institutions in France contacted by Finaccord, segmented by type

2.0 MARKET ANALYSIS

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)

Gross written premiums for protection-related life insurance in France, 2006-2010

Gross written premiums for protection-related life insurance in France, 2006-2010 (data)

Bancassurance provision of risk life insurance in France, 2011: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of critical illness insurance in France, 2011: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of income protection insurance in France, 2011: provision rate, operating models and weighted provider share of partnerships

Gross written premiums for accident and health insurance in France, 2006-2010

Gross written premiums for accident and health insurance in France, 2006-2010 (data)

Distribution share of banks in total non-life insurance in France, 2006-2010 (data)

Bancassurance provision of accident insurance in France, 2011: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of medical expenses insurance in France, 2011: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of health / hospital cash plans in France, 2011: provision rate, operating models and weighted provider share of partnerships

Market share in total non-life insurance of key bancassurance underwriters in France, 2009-2010 (data)

Market share in health insurance of key bancassurance underwriters in France, 2009-2010 (data)

Gross written premiums for personal motor and household insurance in France, 2006-2010

Gross written premiums for personal motor and household insurance in France, 2006-2010 (data)

Bancassurance provision of personal motor insurance in France, 2011: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of household insurance in France, 2011: provision rate, operating models and weighted provider share of partnerships

Market share in total motor insurance of key bancassurance underwriters in France, 2009-2010 (data)

Market share in household insurance of key bancassurance underwriters in France, 2009-2010 (data)

Residential mortgage lending balances outstanding in France (absolute and per capita), 2006-2010

Consumer non-mortgage lending balances outstanding in France (absolute and per capita), 2006-2010

Credit and other pay later cards issued and per capita in France, 2006-2010

Key data points for the consumer lending market in France, 2006-2010

Provision of creditor insurance linked to mortgages in France, 2011: provision rate, operating models and weighted provider share of partnerships

Provision of creditor insurance linked to consumer finance in France, 2011: provision rate, operating models and weighted provider share of partnerships

Provision of creditor insurance linked to credit cards in France, 2011: provision rate, operating models and weighted provider share of partnerships

Risk coverage of creditor insurance policies in France, segmented by type of underlying product, 2011

Creditor insurance gross written premiums in France, segmented by policy type, 2007, 2011 and 2015 (forecast)

Creditor insurance gross written premiums in France, segmented by cover type, 2007, 2011 and 2015 (forecast)

Creditor insurance gross written premiums in France, segmented by policy and cover type, 2007, 2011 and 2015 (forecast) (data)

Note: Product cover images may vary from those shown

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