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

  • ID: 2816980
  • March 2014
  • Region: France, French Guiana
  • 71 Pages
  • Finaccord
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Bancassurance in France: 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 France.

Drawing on the results of a survey of 74 banking entities in France, 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, which takes into account the number of retail customers of the partner banking entities, READ MORE >

Note: Product cover images may vary from those shown
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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 France

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 French consumer banking sector is fairly concentrated…

…and all major banking groups have set up captive insurance providers

3.0 INVESTMENT-RELATED LIFE INSURANCE AND RETIREMENT SAVINGS

Insurance market size and growth

The French market for investment-related life insurance and retirement savings has declined...

.... mainly because contributions to unit-linked policies have fallen sharply in recent years

Distribution share of banks

French banks hold a dominant and steadily increasing share of the life insurance market

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

As the leading external provider, CNP Assurances benefits most from links with two major banks…

…although the partnership with Groupe BPCE is subject to change from 2016 onwards

Captive partners, such as Predica, Cardif and ACM, are prominent in this market

Three banking entities offer products sourced from more than one provider

Retirement savings

Captive partners are also prominent for retirement savings products...

... and most distribution partnerships in this field mirror those of investment-related life cover...

... although those of Barclays and Crédit Foncier de France are different

Performance of key bancassurance underwriters

The top nine bancassurers account for more than 50% of investment-related life insurance premiums

4.0 PROTECTION-RELATED LIFE INSURANCE

Insurance market size and growth

Protection-related life insurance declined marginally between 2009 and 2013

Distribution share of banks

Finaccord's consumer research data indicates French banks' share of protection-related life insurance

Bancassurance provision rates, operating models and partnerships

Risk life insurance

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

…with Predica the sector leader, followed by CNP Assurances, ACM and Cardif

Three joint venture underwriters are active in this arena

External provides are ACE, Aviva Life, AXA, MetLife, Oradéa Vie and Swiss Life

Critical illness insurance

Income protection insurance

CNP Assurances and Intériale Mutuelle are active as external providers in this sector...

... although captive underwriters are once again most widely used

Performance of key bancassurance underwriters

The top 10 bancassurers account for over 10% of the total protection-related life insurance market...

... if specialist health mutuals and provident institutions are also included in the market size

5.0 ACCIDENT AND HEALTH INSURANCE

Insurance market size and growth

Growth in accident insurance has been higher than that for health insurance

Distribution share of banks

The distribution share of French banks in total non-life insurance is increasing steadily

Bancassurance provision rates, operating models and partnerships

Accident insurance

Accident insurance is offered by more than one third of banks and other lending institutions in France…

... with Pacifica, BPCE Assurances, Cardif and ACM claiming the highest weighted share of partnerships

Other captive and joint venture entities include Sogessur and La Banque Postale Prévoyance

AIG's tie with HSBC was forged through its acquisition of the bank's captive non-life insurer in 2013

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

La Banque Postale launched its health insurance joint venture with La Mutuelle Générale in 2012

Health / hospital cash plans

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

…and only six underwriters of any type hold bank partnerships in this arena

Performance of key bancassurance underwriters

All major bank-owned underwriters increased their share of total non-life insurance in France in 2012...

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

6.0 PERSONAL MOTOR AND HOUSEHOLD INSURANCE

Insurance market size and growth

Household insurance premiums rose at a nominal compound annual rate of 5.5% between 2009 and 2013

Distribution share of banks

Online aggregators and brokers may be impeding the progress of banks in motor and household insurance

Bancassurance provision rates, operating models and partnerships

Personal motor insurance

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

AXA's Avanssur is the most visible external provider thanks to ties with BNP Paribas and Cetelem

Household insurance

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

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

Performance of key bancassurance underwriters

All major bank-owned underwriters are making progress in motor and household insurance...

... with La Banque Postale Assurances achieving the fastest growth in the household segment

7.0 CREDITOR INSURANCE

Consumer lending market size and growth

Mortgage lending

Mortgage balances outstanding continue to increase steadily in both nominal and real terms…

Non-mortgage lending

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

Credit and other pay later cards

The number of credit cards in circulation increased slightly in both 2012 and 2013

Creditor insurance provision rates, operating models and partnerships

Creditor insurance linked to mortgages

The vast majority of mortgage borrowers take out mortgage-related life cover as a minimum

CNP Assurances is easily the most visible provider in terms of weighted share of partnerships

... with ACM and Cardif the next most significant competitors

Both Crédit Agricole and Groupe BPCE use a hybrid model in this arena

As well as CNP Assurances, external providers include AXA, QUATREM and Swiss Life

Creditor insurance linked to consumer finance

Virtually all providers of consumer finance offer a related creditor insurance policy

CNP Assurances and Sogécap are likely to be market leaders in this arena...

... although Cardif has the highest number of distribution agreements in place…

…in another market which is largely dominated by captive underwriters

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

Creditor insurance linked to credit cards

Credit card payment protection insurance is commonly marketed by card issuers in France

CNP Assurances again claims the highest weighted share of partnerships in this field...

…and partnerships are mainly similar to those for creditor insurance linked to consumer finance

Only five credit card issuers lack an arrangement in this field

Creditor insurance risk coverage

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

Performance of key bancassurance underwriters

CNP Assurances underwrites over EUR 2.5 billion of creditor insurance premiums in France...

... in a market in which various attempts have been made by regulators to increase competition

Creditor insurance market size, growth and forecast

Growth in mortgage-related creditor insurance premiums is most robust

Statistics exist to help quantify the market for creditor insurance in France

LIST OF GRAPHICS / TABLES

TABLE OF CONTENTS

0.0 EXECUTIVE SUMMARY

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

1.0 INTRODUCTION

Banks and other lending institutions in France 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 France, 2009 to 2013

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

Distribution share of banks in total life insurance in France, 2008 to 2012

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

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

Market share in investment-related life insurance of key bancassurance underwriters in France, 2011 to 2012

4.0 PROTECTION-RELATED LIFE INSURANCE

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

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

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

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

Market share in protection-related life insurance of key bancassurance underwriters in France, 2011 to 2012

5.0 ACCIDENT AND HEALTH INSURANCE

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

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

Distribution share of banks in total non-life insurance in France, 2008 to 2012

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

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

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

Market share in total non-life insurance of key bancassurance underwriters in France, 2009 to 2012

Market share in health insurance of key bancassurance underwriters in France, 2009 to 2012

6.0 PERSONAL MOTOR AND HOUSEHOLD INSURANCE

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

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

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

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

Market share in total motor insurance of key bancassurance underwriters in France, 2009 to 2012

Market share in household insurance of key bancassurance underwriters in France, 2009 to 2012

7.0 CREDITOR INSURANCE

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

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

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

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

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

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

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

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

Premiums written in total creditor insurance by key bancassurance underwriters in France, 2012

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

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

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

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

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