• +353-1-415-1241(GMT OFFICE HOURS)
  • 1-800-526-8630(US/CAN TOLL FREE)
  • 1-917-300-0470(EST OFFICE HOURS)
Bancassurance in Spain: Life, Non-Life and Creditor Insurance Product Image

Bancassurance in Spain: Life, Non-Life and Creditor Insurance

  • Published: November 2011
  • Region: Spain
  • Finaccord

PUBLICATION OVERVIEW

Finaccord's report titled Bancassurance in Spain: Life, Non-Life and Creditor Insurance is about the distribution of insurance products through banks and other lending institutions in Spain.

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;
- creditor insurance for mortgages, consumer finance and credit cards.

Based on a survey of 100 organisations, it identifies 612 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 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

The end of the decade sees a raft of mergers amid general economic uncertainty…

…with more mergers and state take-overs in the forecast

Investment-related life insurance and retirement savings

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

Protection-related life insurance

Insurance market size and growth

The market size is boosted by the substantial value of funeral expenses insurance

Distribution share of banks

Spanish banks remain powerful as distributors in the market for individual risk life insurance

Bancassurance provision rates, operating models and partnerships

Risk life insurance

Risk life insurance policies are sold by close to three quarters of institutions investigated...

…and captive underwriters claim four of the top eight places by weighted share of partnerships

The most prominent non-captive underwriter in this sphere is MAPFRE

Well over 20 banks utilise joint venture underwriters for risk life insurance...

…although Spain's evolving banking market means that the future of many of these is uncertain

In addition to its co-ownership of BanSabadell Vida, Zurich also holds four other distribution deals

…while a significant number of banks still maintain captive underwriters

Critical illness insurance

Very few banks in Spain offer critical illness insurance...

Income protection insurance

... and the rate of provision of income protection insurance is only slightly higher

Short-term policies are offered by six relatively minor banking institutions

Performance of key bancassurance underwriters

Accident and health insurance

Insurance market size and growth

Expenditure on health insurance expands rapidly but accident insurance stagnates

Distribution share of banks

Whether measured by new or total sales, non-life bancassurance in Spain has grown in recent years

The distribution share of banks in accident insurance peaked in 2007...

... with a similar maximum share visible in the case of medical assistance insurance

Bancassurance provision rates, operating models and partnerships

Accident insurance

Accident insurance is marketed by almost a half of Spanish banking institutions investigated...

... with Allianz, MAPFRE and Caser the largest non-captive underwriters in this field

The bancassurance companies of CatalunyaCaixa have been co-owned by MAPFRE since late 2010

Smaller partnerships are spread across a further dozen insurance providers

Medical expenses insurance

The provision rate for medical expenses cover is slightly higher than that for accident insurance

Caser holds the highest weighted share of bancassurance partnerships in this arena...

... followed by MAPFRE and Sanitas

Mutua Madrileña acquired a 50% stake in the non-life operations of La Caixa in July 2011

Seven banks with a million or more customers do not distribute medical expenses insurance

Health / hospital cash plans

Fewer banks market stand-alone health or hospital cash plans...

... albeit BBVA is one that does, through Sanitas

Performance of key bancassurance underwriters

Personal motor and household insurance

The value of the combined market hit a peak in 2008 before declining in subsequent years

Distribution share of banks

Banks are relatively minor distributors of motor insurance although their share is growing

In contrast, for household ‘multi-risk' insurance, bancassurance is a primary sales channel

Bancassurance provision rates, operating models and partnerships

Personal motor insurance

Around two thirds of Spanish banks investigated are distributors of personal motor insurance...

... with most electing to do so via either one or more non-captive underwriters

Línea Directa Aseguradora has been owned outright by Bankinter since 2009

30 banking institutions are not active in this field although these are mainly smaller companies

Household insurance

Captive underwriters are more prominent in the household insurance sector

By weighted share of partnerships, Caser is ranked first in this market...

... followed by Santander Seguros, BBVA Seguros and SegurCaixa

In addition to SegurCaixa, several other joint ventures are also active in this sphere

Allianz, AXA, Generali, Groupama, Liberty Seguros, MAPFRE and Zurich all hold sole provider deals...

... although Pelayo is limited to non-exclusive relationships only

Banking institutions not intermediating household cover are generally those not offering mortgages

Performance of key bancassurance underwriters

Creditor insurance

Consumer lending market size and growth

Mortgage lending

Predictably, growth in Spanish mortgage lending balances has stalled since 2008...

Non-mortgage lending

... with non-mortgage lending balances having actually declined by over 7%

Credit and other pay later cards

The Spanish credit card market declined slightly in both 2009 and 2010 having peaked in 2008

Creditor insurance provision rates, operating models and partnerships

Creditor insurance linked to mortgages

A broad variety of operating models are reported for mortgage-related creditor insurance in Spain

Large captive underwriters leverage high potential client numbers into the highest weighted share...

…while a very large number of insurers hold deals among the smaller mortgage lending institutions

Joint ventures have been popular...

…although Spain's evolving banking market means that the future of many of these is uncertain

Creditor insurance linked to consumer finance

Many partnerships for this form of creditor insurance replicate those for mortgage-related policies...

... although Cardif is ranked first in this field by weighted share of partnerships

Once again, numerous smaller captive and joint venture underwriters are in evidence

Creditor insurance linked to credit cards

Schemes for credit card payment protection insurance are comparatively few in number...

…with the potential reduced somewhat by free protection-related insurance packaged with cards

Creditor insurance risk coverage

Policies linked to consumer finance commonly include cover for temporary incapacity and unemployment

Alternative distribution channels

Several major insurers offer mortgage-related creditor insurance direct to consumers

Creditor insurance market size, growth and forecast

Spain's market for creditor insurance is unlikely to deliver more than weak growth from 2011 to 2015

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY

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

1.0 INTRODUCTION

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

2.0 MARKET ANALYSIS

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)

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

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

Distribution share of banks in individual and group risk life insurance in Spain, 2006-2009 (data)

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

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

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

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

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

Distribution share of banks in total non-life insurance in Spain, 2006-2009 (data)

Distribution share of banks in accident insurance in Spain, 2006-2009 (data)

Distribution share of banks in health and medical assistance insurance in Spain, 2006-2009 (data)

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

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

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

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

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

Distribution share of banks in total motor insurance in Spain, 2006-2009 (data)

Distribution share of banks in household ‘multi-risk' insurance in Spain, 2006-2009 (data)

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

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

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

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

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

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

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

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

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

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

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

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

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

Note: Product cover images may vary from those shown

RELATED PRODUCTS

Our Clients

Our clients' logos