Bancassurance in Switzerland: Life, Non-Life and Creditor

  • ID: 1999308
  • Report
  • Region: Switzerland
  • Finaccord
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PUBLICATION OVERVIEW

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

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 69 organisations, it identifies 169 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.

REASONS TO BUY

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 Switzerland;

- 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 Switzerland;

- 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 Switzerland.
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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

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 Swiss banking system can be segmented into four broad categories

Perceived as ‘safe havens’, the cantonal banks have increased their market share in recent years

The Clientis and Raiffeisen groupings are also significant in Swiss retail banking

Postfinance is allowed to operate without a regular banking license

Investment-related life insurance and retirement savings

Insurance market size and growth

The total value of the Swiss market grew modestly between 2006 and 2010

Distribution share of banks

Bancassurance provision rates, operating models and partnerships

Investment-related life insurance

External underwriters dominate bancassurance distribution of this type of policy in Switzerland

Schweizerische Mobiliar has established relationships with several cantonal and savings banks

Zurich launched a major new bancassurance partnership with Credit Suisse in October 2010

Several quite sizeable banking institutions do not offer investment-related life insurance

Retirement savings

Swiss Life has access to the largest number of banking customers for retirement savings products

Four other product providers are reasonably significant in this sphere...

... and the potential exists for further relationships with banks currently lacking a partner

Performance of key bancassurance underwriters

Protection-related life insurance

Insurance market size and growth

The Swiss market for protection-related life insurance is largely mature

Distribution share of banks

Bancassurance provision rates, operating models and partnerships

Risk life insurance

A substantial proportion of Swiss banks offer risk life insurance

AXA Winterthur and Swiss Life hold relationships with some of the largest banks in Switzerland

The Raiffeisen banking group has proved to be an effective distribution channel for life insurance

Schweizerische Mobiliar is also a significant product provider in this field

Some banks offer investment-related life insurance policies that incorporate a protection element

Critical illness insurance

Income protection insurance

Helvetia’s relationship with the Raiffeisen Bank grouping also extends to income protection insurance

Performance of key bancassurance underwriters

Accident and health insurance

Insurance market size and growth

Increased expenditure on individual policies has caused the health insurance market to expand...

... although less growth is apparent across forms of accident insurance

Distribution share of banks

Bancassurance provision rates, operating models and partnerships

Accident insurance

The existence of SUVA means that there is little scope for Swiss banks to sell accident insurance

Medical expenses insurance

About 40% of Swiss residents take out supplementary health insurance...

.... although Swiss health insurers seldom market their products through banks

Health / hospital cash plans

Neither health nor hospital cash plans are sold through the bancassurance channel

Performance of key bancassurance underwriters

Personal motor and household insurance

Switzerland’s markets for both personal motor and household insurance continue to expand

Distribution share of banks

Bancassurance provision rates, operating models and partnerships

Personal motor insurance

Motor insurance is rarely available from banking entities in Switzerland

Household insurance

Cantonal insurers are dominant in the provision of buildings insurance in Switzerland...

... which reduces the scope for banks to market household policies

The partnership of Helvetia with the Raiffeisen grouping has been in place since 1999

Performance of key bancassurance underwriters

Creditor insurance

Consumer lending market size and growth

Mortgage lending

Mortgage lending balances per capita in Switzerland are the highest of any major country in Europe

Non-mortgage lending

Swiss consumers have reduced substantially their holdings of non-mortgage debt since 2006

Credit and other pay later cards

The Swiss market for credit and other pay later cards grew consistently from 2006 to 2010

Creditor insurance provision rates, operating models and partnerships

Creditor insurance linked to mortgages

Four underwriters dominate distribution relationships in this sector...

... among which the most prominent is Swiss Life...

... although Schweizerische Mobiliar claims a higher outright number of partnerships

Nationale Suisse kicked off its bancassurance partnership with Coop Bank in 2008

A minority of mortgage lenders use an operating model other than a single, external underwriter

Creditor insurance linked to consumer finance

Most providers of consumer finance offer related creditor insurance

Through cashgate, Cardif is used by a number of significant Swiss banks

Six other non-captive underwriters are active in this segment

At the time of the research, UBS had discontinued provision of any form of consumer finance

Creditor insurance linked to credit cards

Credit card payment protection insurance is marketed by only a handful of Swiss card issuers

Creditor insurance risk coverage

Mortgage-related products are commonly configured as relatively straightforward life insurance policies

Alternative distribution channels

Several online credit brokers offer creditor insurance in Switzerland

Creditor insurance market size, growth and forecast

By value, mortgage-related creditor insurance is dominant in Switzerland

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY

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

1.0 INTRODUCTION

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

2.0 MARKET ANALYSIS

Gross written premiums for investment-related life insurance and retirement savings in Switzerland, 2006-2010

Gross written premiums for investment-related life insurance and retirement savings in Switzerland, 2006-2010 (data)

Bancassurance provision of investment-related life insurance in Switzerland, 2011: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of retirement savings in Switzerland, 2011: provision rate, operating models and weighted provider share of partnerships

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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