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

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

  • ID: 2492028
  • January 2013
  • Region: Thailand
  • 68 Pages
  • Finaccord

Bancassurance in Thailand: 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 Thailand.

Drawing on the results of a survey of 44 banking entities in Thailand, 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 READ MORE >

Note: Product cover images may vary from those shown

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 one of the most important distribution channels for life insurance in Thailand

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

Economic background

Thailand benefits from an open and export-driven economy...

... although economic success is not shared equally across the country

In the Ease of Doing Business ranking, Thailand's economy is ranked 17th in the world

Introduction to the banking sector

In terms of its number of retail customers, Bangkok Bank leads the market

Government-owned institutions play an important role in the mortgage lending sector

The presence of foreign-owned banks in the market is comparatively limited,,,

... with several overseas entities having exited the market in recent years

Introduction to bancassurance

Bancassurance in Thailand is well-developed especially for life insurance products

A number of banks have divested stakes in insurance companies in recent years...

…although Siam Commercial Bank has taken full control of its joint venture...

... leaving only two bona fide joint venture insurers in the bancassurance sector

Many insurance companies sell through banks as a part of a multi-channel strategy...

... although those with the most exposure to bancassurance have tended to grow most rapidly

The Thai bancassurance market is subject to relatively 'light touch' regulation

3.0 INVESTMENT-RELATED LIFE INSURANCE AND RETIREMENT SAVINGS

Insurance market size and growth

The market for investment-related life insurance experienced rapid growth between 2008 and 2012...

... with a wide range of policy types in evidence

Distribution share of banks

Bancassurance accounts for over 35% of total life insurance premiums

Bancassurance provision rates, operating models and partnerships

Investment-related life insurance

One third of organisations surveyed in Thailand offer forms of investment-related life insurance products…

…with Krungthai-AXA Life leading the market in terms of its weighted share of partnerships

... followed by SCB Life, which obtains over 80% of its business from bancassurance

The majority of banking organisations collaborate with a single external insurance provider

Retirement savings

Provision of retirement savings products is mostly limited to the larger banking networks

Bangkok Life secures over 60% of its business from the bancassurance channel

Performance of key bancassurance underwriters

4.0 PROTECTION-RELATED LIFE INSURANCE

Insurance market size and growth

Protection-related life insurance premiums increased strongly between 2008 and 2012

Distribution share of banks

Bancassurance provision rates, operating models and partnerships

Risk life insurance

Nearly 40% of Thailand's banking institutions promote some form of risk life insurance...

... with partnerships spread across ten different providers

26 banking organisations have no visible arrangement in place for risk life insurance

Critical illness insurance

Only a limited number of institutions surveyed are distributors of critical illness insurance…

…with familiar underwriters leading the market in terms of partnership share

Income protection insurance

Income protection insurance has yet to establish itself as a core bancassurance product

Performance of key bancassurance underwriters

The combined market share of key bancassurers increased consistently between 2007 and 2011

5.0 ACCIDENT AND HEALTH INSURANCE

Insurance market size and growth

The markets for accident and health insurance are roughly similar in terms of their size and growth

Accident and health cover is often offered as an add-on to life policies rather than stand-alone

Distribution share of banks

Banking organisations play an important role in the distribution of personal accident insurance

Bancassurance provision rates, operating models and partnerships

Accident insurance

Over a third of banking institutions surveyed act as distributors of stand-alone accident insurance

By weighted share of partnerships, Bangkok Life is a sector leader thanks to its deal with Bangkok Bank

ACE Life is utilised by three banking organisations in this field

27 banking organisations have no apparent scheme in place for accident insurance

Medical expenses insurance

Only six partnerships for medical expenses insurance are visible...

... with most deals similar to those also observed for accident cover

Health / hospital cash plans

Health or hospital cash plans are not commonly offered through banking organisations…

..although ACE emerges as the sector leader as a result of two bank relationships

Performance of key bancassurance underwriters

6.0 PERSONAL MOTOR AND HOUSEHOLD INSURANCE

Insurance market size and growth

Personal motor insurance is worth around 25 times as much as household insurance...

... partly because third party liability insurance is compulsory for car drivers

The regulation of non-life insurance products has tightened in recent years

Distribution share of banks

Bancassurance holds a distribution share of close to 10% of motor insurance

Bancassurance provision rates, operating models and partnerships

Personal motor insurance

Over a third of the banking organisations researched offer personal motor insurance...

...with Bangkok Insurance ranked first among providers by weighted share of partnerships

Household insurance

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

...and the first three providers by weighted share of partnerships are identical

Performance of key bancassurance underwriters

SCB Samaggi has lost ground in motor insurance but increased its market share in fire insurance

7.0 CREDITOR INSURANCE

Consumer lending market size and growth

Mortgage lending

Residential mortgage balances grew at a nominal annual rate of 11.5% between 2008 and 2012

Non-mortgage lending

The compound annual growth rate for non-mortgage balances is higher than that for mortgages

Credit and other pay later cards

Credit card penetration in Thailand remains very low by international standards

Creditor insurance provision rates, operating models and partnerships

Creditor insurance linked to mortgages

Provision of creditor insurance by mortgage lending institutions is universal

By weighted share of partnerships, Krungthai-AXA is the most prominent competitor...

AIA has a prominent position in this field when compared to that for other products

Creditor insurance linked to consumer finance

Loan payment protection insurance is offered by over 60% of eligible lenders in Thailand...

... with the leading providers identical to those for mortgage-related creditor insurance

Thai Cardif holds the most distribution partnerships...

... in a sector in which at least a dozen insurance providers are active

Creditor insurance linked to credit cards

Schemes for credit card payment protection insurance are less widespread in Thailand

On a weighted basis, the market is dominated by one captive and one joint venture underwriter

12 credit card issuers have no apparent scheme in place for card-related creditor insurance

Creditor insurance risk coverage

Some policies include cover for temporary incapacity but unemployment insurance is not present

Creditor insurance market size, growth and forecast

Growth in the creditor insurance market may accelerate slightly between 2012 and 2016...

... as a consequence of a continuing increase in consumer lending, especially non-mortgage credit

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY

Overview of bancassurance provision rates for different types of insurance in Thailand, 2012

1.0 INTRODUCTION

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

2.0 MARKET BACKGROUND

Key economic indicators for Thailand, 2012

3.0 INVESTMENT-RELATED LIFE INSURANCE AND RETIREMENT SAVINGS

Gross written premiums for investment-related life insurance and retirement savings in Thailand, 2008 to 2012

Gross written premiums for investment-related life insurance and retirement savings in Thailand, 2008 to 2012 (data)

Bancassurance provision of investment-related life insurance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of retirement savings in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships

4.0 PROTECTION-RELATED LIFE INSURANCE

Gross written premiums for protection-related life insurance in Thailand, 2008 to 2012

Gross written premiums for protection-related life insurance in Thailand, 2008 to 2012 (data)

Bancassurance provision of risk life insurance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of critical illness insurance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of income protection insurance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships

Market share in total life insurance of key bancassurance underwriters in Thailand, 2007 to 2011

5.0 ACCIDENT AND HEALTH INSURANCE

Gross written premiums for accident and health insurance in Thailand, 2008 to 2012

Gross written premiums for accident and health insurance in Thailand, 2008 to 2012 (data)

Bancassurance provision of accident insurance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of medical expenses insurance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision health / hospital cash plans in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships

Market share in accident insurance of key bancassurance underwriters in Thailand, 2007 to 2011

Market share in health insurance of key bancassurance underwriters in Thailand, 2007 to 2011

6.0 PERSONAL MOTOR AND HOUSEHOLD INSURANCE

Gross written premiums for personal motor and household insurance in Thailand, 2008 to 2012

Gross written premiums for personal motor and household insurance in Thailand, 2008 to 2012 (data)

Bancassurance provision of personal motor insurance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of household insurance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships

Market share in motor insurance of key bancassurance underwriters in Thailand, 2007 to 2011

Market share in fire insurance of key bancassurance underwriters in Thailand, 2007 to 2011

7.0 CREDITOR INSURANCE

Residential mortgage lending balances outstanding in Thailand (absolute and per capita), 2008 to 2012

Consumer non-mortgage lending balances outstanding in Thailand (absolute and per capita), 2008 to 2012

Credit and other pay later cards issued and per capita in Thailand, 2008 to 2012

Key data points for the consumer lending market in Thailand, 2008 to 2012

Provision of creditor insurance linked to mortgages in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships

Provision of creditor insurance linked to consumer finance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships

Provision of creditor insurance linked to credit cards in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships

Risk coverage of creditor insurance policies in Thailand, segmented by type of underlying product, 2012

Creditor insurance gross written premiums in Thailand, segmented by policy type, 2008, 2012 and 2016

Creditor insurance gross written premiums in Thailand, segmented by cover type, 2008, 2012 and 2016

Creditor insurance gross written premiums in Thailand, segmented by policy and cover type, 2008, 2012 and 2016 (data)

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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