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

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

  • Published: March 2014
  • Region: Spain
  • 70 Pages
  • Finaccord

Bancassurance in Spain: Life, Non-Life and Creditor Insurance is a study and related PartnerBASE™ dataset examining the provision of life, non-life and creditor insurance by banks and other lending institutions in Spain.

Drawing on the results of a survey of 76 banking entities in Spain, the study verifies the percentage of organisations investigated that distribute each of the following 13 types of insurance: accident insurance, creditor insurance related to consumer finance, creditor insurance related to credit cards, creditor insurance related to mortgages, critical illness insurance, health / hospital cash plans, household insurance, income protection insurance, investment-related life insurance, medical expenses insurance, personal motor insurance, retirement savings, and risk life insurance.

For those banking entities that are active in one or more of these fields, the reports ascertain the operating models that they use to source the type of insurance in question (e.g. external, joint venture or captive underwriters) and the identity of the specific providers used. This information is then displayed in terms of the weighted share of partnerships of these providers, 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

Bancassurance is by far the most important distribution channel for life insurance in Spain

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

PartnerBASE and market data annexe

Finaccord

2.0 MARKET BACKGROUND

Banks and other lending institutions covered

Introduction to the banking sector

The Spanish banking sector has seen a raft of mergers amid general economic uncertainty…

…and the ongoing restructuring process has seen the creation of several new holding companies

Further consolidation in the banking sector seems likely

3.0 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 increased quite rapidly between 2009 and 2013

Distribution share of banks

While still dominant, the share of banks in total life insurance has retreated slightly in recent years...

... although they remain especially powerful in the market for individual single premium policies

Bancassurance provision rates, operating models and partnerships

Investment-related life insurance

Investment-related life policies are available from close to two thirds of Spanish banks surveyed

By weighted share of partnerships, Aegon's joint venture with Santander is ranked first...

... followed by MAPFRE and Allianz Popular Vida

Captive and joint venture providers collectively account for a clear majority of relationships

Eight insurance companies are still co-owners of bancassurance joint ventures in this field

The Banco Sabedell group has changed its bancassurance strategy significantly in recent years

External insurance providers in this market include Allianz, Aviva, Caser and Zurich

Retirement savings

Arrangements for retirement savings are largely similar to those for investment-related life insurance…

… albeit with one major exception

Seven banking entities promote retirement savings but not investment-related life insurance

Performance of key bancassurance underwriters

Key bancassurance underwriters accounted for more than 60% of all life insurance premiums in 2013

4.0 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

Bancassurance constitutes a powerful channel for individual risk life insurance

Bancassurance provision rates, operating models and partnerships

Risk life insurance

Risk life insurance is promoted by a majority of banking institutions surveyed...

... with Aegon Santander Vida again ranked first by weighted share of partnerships...

... and with captive and joint venture underwriters again prominent

MAPFRE is the most visible external provider thanks to its distribution tie with Bankia

Critical illness insurance

Stand-alone critical illness cover is rarely available from Spanish banks...

Income protection insurance

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

Performance of key bancassurance underwriters

5.0 ACCIDENT AND HEALTH INSURANCE

Insurance market size and growth

Health insurance premiums grew at a nominal compound annual rate of 3.0% between 2009 and 2013...

... with the bulk of this market composed of medical assistance insurance ('asistencia sanitaria')

Distribution share of banks

Banks' share of distribution for non-life insurance has fallen back slightly in recent years...

… although it has moved up to more than 20% of the total for accident insurance...

... and has also risen for health insurance, including medical assistance insurance

Bancassurance provision rates, operating models and partnerships

Accident insurance

Accident insurance is marketed by more than half of the Spanish banking institutions investigated...

...with MAPFRE and Caser emerging as the most prominent non-captive underwriters in this field

Six of the top eight providers are either captive or joint venture underwriters

External partnerships for accident insurance are spread across a total of seven different providers

Medical expenses insurance

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

…with captive and joint venture underwriters considerably less important in this field...

... due to the presence of specialised providers such as Asisa, DKV, Néctar and Sanitas

Health / hospital cash plans

Comparatively few bancassurance initiatives are identifiable in this field...

... in which BBVA Seguros and MAPFRE are dominant by weighted share of partnerships

Performance of key bancassurance underwriters

Key bancassurance underwriters control over 15% of the total non-life insurance market in Spain

6.0 PERSONAL MOTOR AND HOUSEHOLD INSURANCE

Insurance market size and growth

Premiums for household cover are fairly steady but those for personal motor insurance are falling

Distribution share of banks

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

... but for household ‘multi-risk’ insurance, bancassurance is a primary sales channel

Bancassurance provision rates, operating models and partnerships

Personal motor insurance

45 banks and other lending institutions have an arrangement for selling personal motor insurance...

... with Santander having created a dedicated online brokerage for this purpose

Liberty Seguros set up a co-insurance arrangement with BBVA Seguros in 2012

Caser collaborates with 13 different banking organisations for personal motor insurance…

…in a field in which captive and joint venture underwriters are less prominent than in others

Several banking entities use multiple insurance partners for personal motor insurance

Household insurance

The provision rate for household insurance is even higher than that for personal motor insurance...

... and relationships are often similar albeit with some notable exceptions

Several banks distribute household insurance policies but not personal motor cover

Performance of key bancassurance underwriters

7.0 CREDITOR INSURANCE

Consumer lending market size and growth

Mortgage lending

Mortgage balances declined at a nominal compound annual rate of 3.3% between 2009 and 2013…

Non-mortgage lending

…and the value of total non-mortgage consumer lending has fallen back even faster in recent years

Credit and other pay later cards

The contraction in the number of credit cards in circulation has been less precipitous

Creditor insurance provision rates, operating models and partnerships

Creditor insurance linked to mortgages

Virtually all mortgage lenders offer related creditor insurance

Apart from MAPFRE and Caser this arena is dominated by captive and joint venture providers…

…with six of the top eight providers owned or co-owned by banking groups

13 mortgage lenders in Spain use a hybrid operating model for this type of creditor insurance...

... as a result of the fact that it combines both life and non-life elements

Creditor insurance linked to consumer finance

Providers of non-mortgage credit are also enthusiastic distributors of related creditor insurance

Many partnerships in this sphere are identical to those for mortgage-related creditor insurance…

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

Creditor insurance linked to credit cards

Credit card payment protection insurance is less commonly marketed by card issuers in Spain...

... with just a baker's dozen active at the time of the research

Creditor insurance risk coverage

More than a half of policies include an option to cover temporary incapacity and unemployment

Creditor insurance market size, growth and forecast

The market has fallen in value in recent years as a consequence of several factors

... and is forecast to decline further up to 2017

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY

Overview of bancassurance provision rates for different types of insurance in Spain, 2014

1.0 INTRODUCTION

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

2.0 MARKET BACKGROUND

3.0 INVESTMENT-RELATED LIFE INSURANCE AND RETIREMENT SAVINGS

Gross written premiums for investment-related life insurance and retirement savings in Spain, 2009 to 2013

Gross written premiums for investment-related life insurance and retirement savings in Spain, 2009 to 2013 (table)

Distribution share of banks in total life insurance in Spain, 2007 to 2011

Distribution share of banks in individual and group investment-related life insurance in Spain, 2007 to 2011

Bancassurance provision of investment-related life insurance in Spain, 2014: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of retirement savings in Spain, 2014: provision rate, operating models and weighted provider share of partnerships

Market share in total life insurance of key bancassurance underwriters in Spain, 2011 to 2013

4.0 PROTECTION-RELATED LIFE INSURANCE

Gross written premiums for protection-related life insurance in Spain, 2009 to 2013

Gross written premiums for protection-related life insurance in Spain, 2009 to 2013 (table)

Distribution share of banks in individual and group risk life insurance in Spain, 2007 to 2011

Bancassurance provision of risk life insurance in Spain, 2014: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of critical illness insurance in Spain, 2014: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of income protection insurance in Spain, 2014: provision rate, operating models and weighted provider share of partnerships

5.0 ACCIDENT AND HEALTH INSURANCE

Gross written premiums for accident and health insurance in Spain, 2009 to 2013

Gross written premiums for accident and health insurance in Spain, 2009 to 2013 (table)

Distribution share of banks in total non-life insurance in Spain, 2007 to 2011

Distribution share of banks in accident insurance in Spain, 2007 to 2011

Distribution share of banks in health and medical assistance insurance in Spain, 2007 to 2011

Bancassurance provision of accident insurance in Spain, 2014: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of medical expenses insurance in Spain, 2014: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of health / hospital cash plans in Spain, 2014: provision rate, operating models and weighted provider share of partnerships

Market share in total non-life insurance of key bancassurance underwriters in Spain, 2011 to 2013

6.0 PERSONAL MOTOR AND HOUSEHOLD INSURANCE

Gross written premiums for personal motor and household insurance in Spain, 2009 to 2013

Gross written premiums for personal motor and household insurance in Spain, 2009 to 2013 (data)

Distribution share of banks in total motor insurance in Spain, 2007 to 2011

Distribution share of banks in household ‘multi-risk’ insurance in Spain in Spain, 2007 to 2011

Bancassurance provision of personal motor insurance in Spain, 2014: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of household insurance in Spain, 2014: provision rate, operating models and weighted provider share of partnerships

7.0 CREDITOR INSURANCE

Residential mortgage lending balances outstanding in Spain (absolute and per capita), 2009 to 2013

Consumer non-mortgage lending balances outstanding in Spain (absolute and per capita), 2009 to 2013

Credit and other pay later cards issued and per capita in Spain, 2009 to 2013

Key data points for the consumer lending market in Spain, 2009 to 2013

Provision of creditor insurance linked to mortgages in Spain, 2014: provision rate, operating models and weighted provider share of partnerships

Provision of creditor insurance linked to consumer finance in Spain, 2014: provision rate, operating models and weighted provider share of partnerships

Provision of creditor insurance linked to credit cards in Spain, 2014: provision rate, operating models and weighted provider share of partnerships

Risk coverage of creditor insurance policies in Spain, segmented by type of underlying product, 2014

Creditor insurance gross written premiums in Spain, segmented by policy type, 2009, 2013 and 2017

Creditor insurance gross written premiums in Spain, segmented by cover type, 2009, 2013 and 2017

Creditor insurance gross written premiums in Spain, segmented by policy and cover type, 2009, 2013 and 2017

Note: Product cover images may vary from those shown

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