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Bancassurance in France Life Non-Life and Creditor Insurance
Finaccord, November 2011
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, for which historic, current and forecast market size data is provided for 2007, 2011 and 2015, the report also sizes the market for the various types of insurance investigated in terms of gross written premiums between 2006 and 2010, provides a general introduction to the banking sector, comments upon the general influence of the bank distribution channel for these types of insurance, and presents available data for key bancassurance underwriters, including captives, joint ventures and other dedicated bancassurance underwriters.
KEY BENEFITS
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 a range of personal insurance products by a majority of significant banking entities in France;
- identify partnership opportunities for these types of 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 in France;
- 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 different types of life, non-life and creditor insurance through banks and other lending institutions in France.
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)
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