Risk insurance top bank offerings
Recent research by market research, publishing and consulting company Finaccord has looked into the types of insurance most often offered by banks, finding that, of all the banks researched, risk insurance (52.6 per cent) and household insurance (48.2 per cent) were most commonly offered.
The research, carried out in 2017 and including 1,500 consumer banks and other lending institutions belonging to the world’s top 500 retail banking groups across over 100 countries, also found that mortgage-related creditor insurance was offered by 77.8 per cent of mortgage-lenders, with non-mortgage loan protection policies on offer from 58.8 per cent of the relevant institutions.
“In many countries around the world, creditor insurance, also known as payment protection insurance, remains an important bancassurance product,” commented Claire Michaud, a consultant at Finaccord. “While regulatory intervention has put an end to most forms of creditor insurance in the UK, the market is believed globally to be worth around $90 billion in total premiums, most of which is distributed through the banks and other lenders granting the underlying credit. Risk, life and household insurance also represent obvious cross-selling opportunities among both mortgage borrowers and other retail customers for most banks.”
Identity protection and trade credit insurance were the lowest ranked offerings, with 4.5 per cent and 5.9 per cent respectively. Elsewhere in the non-life insurance offerings, general-purpose liability and property policies for small business customers were available from over 20 per cent of banks researched.
“Product innovation is a key aspect of bancassurance,” concluded Michaud. “However, there remains plenty of scope for banks to broaden the array of insurance products that they offer, especially in geographies such as Africa and the Middle East, plus some countries in the Asia-Pacific region, where bancassurance remains a less developed concept.”