Bancassurance in the Asia-Pacific Region: Strategies of the Region's Top 150 Retail Banking Groups is a

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1 Brochure More information from Bancassurance in the Asia-Pacific Region: Strategies of the Region's Top 150 Retail Banking Groups Description: Bancassurance in the Asia-Pacific Region: Strategies of the Region's Top 150 Retail Banking Groups is a report and PartnerBASE dataset that provides a detailed overview of the bancassurance strategies of 150 of the leading consumer banking groups in the Asia-Pacific region. In total, the research investigates 385 country-specific retail banking units since some of these groups are active in retail banking in multiple territories; for example, the study analyses the bancassurance operations of HSBC in a total of 12 countries. For each country-specific unit, it ascertains which of 18 different insurance types are offered, the operating model used where they are available (differentiating, for example, between external, joint venture and captive underwriting partners) and the identity of the insurance providers in each case. This dataset is then used to analyse the bancassurance strategies of each of the 150 retail banking groups. For example: it highlights which groups maintain alliances with insurance providers that can be considered strategic and which work more loosely with a range of providers; it shows whether internationally-diversified groups utilise the same insurance partners across multiple countries in the Asia-Pacific region or whether they formulate their approach at a country-specific level; and it demonstrates which groups are reliant wholly or mainly on captive or joint venture underwriters. The report and PartnerBASE dataset that accompanies it can be used in one or more of the following ways: - gain access to a unique information source that will allow you to arrive at a rapid understanding of the bancassurance strategies of 150 of the leading retail banking groups in the Asia-Pacific region; - appreciate which insurance providers have been successful in establishing partnerships with these groups and which of those partnerships can be considered genuinely strategic; - comprehend the magnitude of the captive and / or joint venture underwriting businesses of over 70 banking groups in the Asia-Pacific region that have their own insurance subsidiaries; - evaluate opportunities to establish bancassurance partnerships across a wide range of insurance products (both life and non-life, personal and commercial) either in a single country or across multiple territories where banking groups are active; - benefit from both the broad conclusions contained within the report and the product-specific detail in the PartnerBASE, meaning that this is a study that can be used for both strategic and tactical planning. Contents: 0.0 EXECUTIVE SUMMARY 1.0 INTRODUCTION What is this report about? This study is the first ever analysis of the bancassurance strategy of major Asia-Pacific banking groups Methodology Survey of banks and other lending institutions Product definitions Accident insurance Card protection insurance

2 Creditor insurance Critical illness insurance Household insurance Income protection insurance Investment-related life insurance Health / hospital cash plans Medical expenses insurance Personal motor insurance Professional indemnity insurance Retirement savings Risk life insurance Trade credit insurance Travel insurance Other commercial non-life insurance Operating model definitions Weighted provider share of partnerships Abbreviations and exchange rates PartnerBASE Finaccord 2.0 GROUP STRATEGY OVERVIEW Introduction Captive and joint venture underwriters More than half of the 150 banking groups own at least one captive or joint venture underwriter In India, the regulatory environment is an important determinant of insurance company ownership while strategic considerations have driven Chinese banks to develop insurance businesses Captive and joint venture insurers in the region underwrote over USD 140 billion in premiums in 2013 By total value of premiums, Japan Post Bank is the largest bancassurer in the Asia-Pacific region and AXA is the insurance group with the most joint venture arrangements Strategic partnerships 38 of the 150 banking groups investigated are classifiable as having strategic bancassurance partnerships Among insurance providers, LIC, Allianz and Prudential hold the most such relationships... All partnerships

3 and eight of the 20 most visible insurance groups originate from Japan Mergers and acquisitions Merger and acquisition activity is often prompted by ambitions in bancassurance Provision rates of insurance products 12 policy types are available from over a third of the 385 country-specific banking units analysed General purpose liability and property insurance for business customers is promoted by slightly fewer Distribution opportunities are apparent for both mainstream and niche insurance types 3.0 GROUP STRATEGY ANALYSIS Introduction ABA Bank The involvement in bancassurance of ABA Bank remains at an embryonic stage ACLEDA Bank ACLEDA Bank has established an exclusive partnership with Prudential AEON Financial Services Most insurance products are intermediated by a captive broking operation Affin Holdings Most insurance products are sourced from a joint venture with AXA Agrani Bank Agrani Bank represents a potential future opportunity for insurance providers Agribank Agribank makes exclusive use of a captive underwriter Agricultural Bank of China The group has acquired a majority stake in a life insurance company... although it continues to use a number of other insurance providers

4 Agricultural Promotion Bank All products marketed are sourced from one insurance provider Allahabad Bank Allahabad Bank is one of several co-owners of Universal Sompo although state-owned LIC is the bank's main life insurance partner Alliance Financial Group Alliance Financial Group maintains partnerships with multiple external underwriters Allied Bank Allied Bank has established bancassurance agreements with two external partners AmBank Group AmBank Group has set up joint ventures with two major international insurance groups American Express (Asia-Pacific region businesses) American Express collaborates with a broad range of providers for insurance products among which ACE and AXA are prominent in weighted terms Andhra Bank Andhra Bank owns a life insurance underwriter jointly with Bank of Baroda and Legal & General but utilises an external underwriter for non-life insurance 64 ANZ (Asia-Pacific region businesses) Across nine retail banking operations, ANZ works with a variety of external underwriters Axis Bank Axis Bank has established ties with three different insurance partners Bangkok Bank Bangkok Bank holds minority stakes in both of its strategic bancassurance partners

5 Bank Danamon Bank Danamon sources non-life insurance policies from a captive underwriter but uses an external partner for life insurance Bank Mandiri Most insurance products marketed are underwritten by joint venture partners although a few come from other sources Bank of Baroda The bank's life insurance joint venture was established in 2010 but non-life policies originate from an external (state-owned) partner Bank of Beijing Bank of Beijing's joint venture secures around 70% of total premiums from the bancassurance channel Bank of Ceylon Given that it has around 11 million customers, Bank of Ceylon's potential could be significant Bank of China The group sources insurance products from a combination of captive and external underwriters with the precise arrangements varying across the seven countries in which it is active Bank of Communications Bank of Communications combines usage of several different operating models including a joint venture co-owned by Commonwealth Bank Group Bank of India Dai-Ichi Life and Union Bank of India are co-owners of a life insurance joint venture with National Insurance Company used for non-life policies Bank of Jiangsu

6 China Life is most prominent among the external underwriters utilised by Bank of Jiangsu Bank of Kyoto In keeping with most Japanese banks, Bank of Kyoto has distribution ties with multiple external underwriters Bank of Nanjing Bank of Nanjing sells life insurance policies underwritten by several external providers Bank of Ningbo New China Life is most prominent among the insurance providers employed by Bank of Ningbo Bank of Shanghai Insurance products are offered through links with three external underwriters Bank of the Philippine Islands BPI has created joint ventures with two international insurance groups Bank of Yokohama Bank of Yokohama's approach to bancassurance is typical of that of major Japanese banking groups Bank Pour Le Commerce Exterieur The bank operates a joint venture underwriter in partnership with Vietnam's BIDV Bank Rakyat Indonesia Most (but not all) insurance products originate from the bank's captive underwriters BCA BCA has set up a captive non-life insurance underwriter and also holds a strategic partnership with AIA although product distribution opportunities also exist for other insurance providers BDO Unibank

7 In addition to its joint venture with Generali, the bank also works with several external underwriters BEA Group The group makes use of two captive underwriters in Hong Kong but co-operates with a number of external underwriters in China Beijing Rural Commercial Bank The bank's involvement in bancassurance is limited to life and health insurance BIDV All insurance products are underwritten by entities owned or co-owned by the bank although it signed a new joint venture agreement with MetLife in September 2013 BNI BNI Life has been reconfigured as a joint venture underwriter co-owned by Sumitomo Life although it is not the only insurance provider used by the bank BS Financial Group The regulatory environment is a principal determinant of this bank's approach to bancassurance BSN BSN has been expanding its joint venture relationship with Prudential Cambodia Post Bank Having launched in September 2013, this bank represents a new distribution opportunity for insurers Canadia Bank BIDV is the majority owner of the insurance provider used exclusively by this bank Canara Bank Insurance policies are sourced from both a joint venture underwriter and several external partners

8 most notably United India Insurance Chiba Bank Chiba Bank maintains loose distribution partnerships with a large array of insurance companies China Bohai Bank China Bohai Bank sources all of its insurance products from just one underwriter China CITIC Bank The group's joint venture achieved premiums of close to USD 700 million in 2013 utilising a multi-channel distribution strategy that also includes agents and direct marketing China Construction Bank China Construction Bank acquired direct exposure to insurance through a transaction in 2010 with Pacific Antai having since been rebranded as CCB Life China Everbright Bank The bank's joint venture with Sun Life Financial secured premiums of almost USD 500 million in 2013 although revenues are also generated from distribution deals with other insurers China Guangfa Bank China Guangfa Bank collaborates with a diverse array of external underwriters including Anbang, China Life, CITIC Prudential, MetLife and Taiping China Merchants Bank In China, most insurance products sold are underwritten by the bank's joint venture with Cigna.. while in Hong Kong the group operates both a captive and a joint venture underwriter China Minsheng Bank China Minsheng Bank co-operates for bancassurance with a variety of external underwriters China Zheshang Bank

9 All insurance products marketed are underwritten by one external provider Chong Hing Bank Chong Hing Bank sources insurance products from captive and joint venture underwriters Chongqing Rural Commercial Bank There ought to be opportunities to market new types of insurance via Chongqing Rural Commercial Bank CIMB Group Sun Life Financial is the group's strategic partner for bancassurance although other providers are also used for selected products Citigroup (Asia-Pacific region businesses) In the Asia-Pacific region the group has entered into a strategic partnership with AIA albeit this had not yet been fully implemented as at the final quarter of 2014 Commercial Bank of Ceylon The bank utilises four external underwriters in its home market Commonwealth Bank Group (Asia-Pacific region businesses) The group has established a joint venture underwriter in Indonesia... and has itself entered into a joint venture with a major bank in China Corporation Bank Corporation Bank maintains distribution agreements with two government-owned insurance providers Credit Saison Insurance products marketed by Credit Saison originate from a wide range of different providers CTBC Financial Holding The group's insurance subsidiary acquired Manulife's Taiwanese operations in July 2013

10 Dah Sing Banking Group Dah Sing Banking Group adheres to utilisation of a captive bancassurance underwriter DBS DBS works with two main partners for bancassurance in its home market although one of these could change during 2015 DGB Financial Group Local regulations determine that that the group employs a variety of different insurance providers although it is also considering the acquisition of its own insurance company DongA Bank A single insurance provider is used for all insurance products marketed Evergrowing Bank Life insurance products are sourced from five different insurance partners Federal Bank Ageas and IDBI Bank are co-owners of the bank's life insurance joint venture with Bajaj Allianz utilised for non-life insurance Fukuoka Financial Group For insurance purposes, the group's banks act in the manner of multi-tied agents Government Savings Bank GBS works with one life and one non-life insurance company Guangzhou Rural Commercial Bank China Life, New China Life and PICC are the most prominent partners working with this bank Habib Bank

11 In Pakistan, its domestic market, Habib Bank has teamed up with Jubilee for insurance services Hana Financial Group The group has acquired the stake in its joint venture formerly owned by HSBC but works with numerous other insurance providers in its home market Hatton National Bank Hatton National Bank sources insurance products exclusively from a captive underwriter HDFC Bank The group has joined forces with ERGO and Standard Life to form joint venture underwriters which achieved premiums of USD 4.64 billion in the most recent financial year Hiroshima Bank Hiroshima Bank works with a broad range of external providers to promote insurance products Hokuhoku Financial Group Hokuhoku Financial Group sources insurance from a variety of non-captive underwriters Hong Leong Financial Group Together with Japan's MS&AD, the group has established three joint venture underwriters HSBC (Asia-Pacific region businesses) HSBC has divested a number of insurance interests in the Asia-Pacific region although still has its own subsidiaries in selected markets Hua Nan Financial Hua Nan Financial works with several external underwriters in addition to its own captive Hua Xia Bank A customer base of around 19.3 million should make Hua Xia Bank an interesting bancassurance partner

12 Huishang Bank Huishang Bank relies on bancassurance partnerships with three external underwriters including one co-owned by Bank of Beijing and BNP Paribas ICBC The group's joint venture with AXA has already become a significant underwriter in the Chinese market although it competes with other underwriters to sell through the bank's branches ICICI Bank Most of ICICI Bank's involvement in bancassurance is co-ordinated through two joint ventures Indian Bank This government-owned bank sticks mainly to use of state-owned insurance providers Indian Overseas Bank The bank's joint venture underwriter remains a relatively small player in the Indian market Industrial Bank The group is active in both life and non-life insurance, working in this context with several external firms Industrial Bank of Korea For the time being, the growth potential of IBK Insurance is restricted by local bancassurance regulations Islami Bank Bangladesh The Sharia-compliant bank could constitute a future distribution partner for insurance providers Janata Bank Janata Bank lays claim to a base of around 6 million customers in its home market Japan Post Bank Japan Post Insurance is the largest bancassurance underwriter in the Asia-Pacific region

13 and sells through a variety of distribution channels over and above Japan Post itself JCB In line with other Japanese banking organisations, JCB holds partnerships with multiple underwriters Joyo Bank In the realm of bancassurance, Joyo Bank does not limit itself to one particular partner Kasikorn Bank For life insurance, the bank utilises an insurer in which Ageas holds a minority stake KB Financial Group The group has taken full control of a life insurer formerly co-owned by ING Korea Post Bank Korea Post Bank carries on insurance business entirely through one sister company Krungthai Bank Krungthai Bank utilises one captive and two joint venture underwriters in its domestic market and works with a subsidiary of Asian Insurance Group in Cambodia Lao Development Bank Lao Development Bank has initiated bancassurance activity through a joint venture underwriter Maybank The joint venture underwriter co-owned by Ageas and Maybank is expanding internationally although not all insurance products originate from this company MCB Bank Adamjee Insurance, EFU Life, IGI Life and Jubilee are all used as insurance providers by MCB Bank Mega International Commercial Bank

14 Mega International Commercial Bank organises insurance products from multiple external providers Metrobank Metrobank's joint venture with AXA sourced over two thirds of policy sales via bancassurance in 2013 and the bank also owns a small captive underwriter of non-life insurance Mitsubishi UFJ Financial Group Both within and outside Japan, the group's consumer-facing banks work with a number of external insurers Mizuho Financial Group Mizuho Financial Group's retail banking activities are limited to Japan where it works with a diverse array of external insurance providers National Bank of Pakistan Pakistan's largest bank has yet to roll out a full portfolio of bancassurance products NH Financial Group The group owns substantial captive life and non-life insurance businesses although its growth prospects are limited by local bancassurance regulations Nishi-Nippon City Bank Loose distribution partnerships are held with a large number of insurance companies OCBC Most of the group's bancassurance activities are organised via Great Eastern, its captive underwriter although other providers are used for selected products in certain markets Orient Corporation Five non-indigenous insurance companies promote policies via Japan's Orico Oriental Bank of Commerce

15 The bank's joint venture underwrote premiums of more than USD 300 million in the year to end March 2014 People's Bank In recent years, Sri Lanka's People's Bank has developed a captive bancassurance operation Philippine National Bank The bank operates both a life and a non-life insurance captive in the Filipino market although employs an external underwriter for one insurance product offered Ping An Bank This bank sells the products of the eponymous insurer that owns most of its share capital Postal Savings Bank of China A captive plus seven external underwriters are utilised by PSBC among which CPIC is the most visible in the weighted analysis of partnerships Public Bank AIA inherited a bancassurance partnership with Public Bank by acquiring ING Malaysia in 2012 with the result that this group is the dominant provider of insurance products to the bank Punjab National Bank Insurance products are arranged through two providers, one of which is co-owned by MetLife Rakuten Bank This online-only bank sells insurance underwritten by both a captive and several external partners RCBC RCBC utilises both a captive and a joint venture underwriter for bancassurance and the former entity (Malayan Insurance) is a market leader in the Philippines Resona Holdings

16 Insurance is available in the group's domestic market but not yet via its subsidiary in Indonesia RHB Banking Group For several years, the group has acted as an exclusive distributor of Tokio Marine's life insurance policies Rupali Bank Bancassurance products could potentially be developed for this bank's 3.5 million customer base Sampath Bank Two insurance types are marketed, both arranged through multiple external underwriters Samsung Card Samsung Card uses both a sister company and external underwriters for insurance products with the latter including ACE, AIA, AIG, Hyundai Marine and LINA Life SBI Group In recent months, SBI Group has expanded into both Cambodia and South Korea which potentially throws up new partnership opportunities for insurance providers Shanghai Commercial Bank In Hong Kong, the bank has established both a captive and a joint venture underwriter Shanghai Pudong Development Bank AIG and CPIC appear to enjoy most access to this bank's base of around 27 million customers Shanghai Rural Commercial Bank The bank works with six external underwriters, most notably Anbang, CPIC and Ping An Shinhan Financial Group The group's retail arms in South Korea work with both captive and external providers Shizuoka Bank Group Insurers belonging to BNP Paribas and Dai-Ichi Life are most prominent in the weighted analysis

17 Shoko Chukin Bank There could be scope for Shoko Chukin Bank to expand the range of bancassurance products offered Siam Commercial Bank Insurance providers used by this bank have been subject to ownership changes in recent years with the bank having bought its captive life insurer from New York Life in 2011 and sold its non-life underwriter to ACE in 2014 Sonali Bank Around 8 million customers could represent a viable rationale for developing bancassurance products Standard Chartered Standard Chartered has a long-standing partnership with Prudential in the Asia-Pacific region which was extended through a new agreement in March 2014 to cover a total of 11 markets However, Prudential is not the group's only bancassurance partner State Bank of India As a result of Indian bancassurance regulations, the group uses joint venture insurers in its home market with premiums written by these firms poised to exceed USD 2 billion Su Hyup Bank Su Hyup Bank is the owner of a fairly substantial captive underwriter Sumitomo Mitsui Financial Group MS&AD is the most prominent of many insurance providers used by this banking group Syndicate Bank The bank's main (but not exclusive) insurance providers are LIC and United India Insurance Taishin Financial Holding

18 Two retail banking subsidiaries produce a combined customer base of around 9 million Taiwan Cooperative Bank The bank employs several external underwriters in addition to its joint venture with BNP Paribas Taiwan Financial Holdings The group combines use of a captive insurer with parallel usage of several external underwriters UCO Bank All insurance policies on offer are sourced from one of two companies Union Bank of India AEGON Religare, ECGC and New India Insurance are all used for at least one product by this bank which sources life insurance from a joint venture co-owned by Bank of India and Dai-Ichi Life UBL UBL operates a small captive non-life underwriter and also works with several external life insurers United Bank of India United Bank of India concentrates on distributing non-life insurance policies, all from one provider UOB Group UOB Group's approach to bancassurance varies across the six countries in which it is active albeit with Prudential used for life insurance in most cases Vietcombank Vietcombank's small joint venture is co-owned by BNP Paribas and SeABank VietinBank The bank is active through both a captive and a joint venture underwriter in the Vietnamese market with the latter set up in conjunction with Aviva in 2011 Woori Financial Group

19 The group sold its former joint venture underwriter to NH Financial Group in April 2014 meaning that its insurance partners are all external underwriters Yamaguchi Financial Group Three indigenous Japanese insurers are most prominent among this bank's insurance partners Ordering: Order Online - Order by Fax - using the form below Order by Post - print the order form below and send to Research and Markets, Guinness Centre, Taylors Lane, Dublin 8, Ireland.

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