- Expansion of foreign insurers in China also having a significant market impact.
TechNavio, the independent London-based global research firm, today announced the publication of its research report on the Bancassurance Market in China, which finds that the market in China is growing with a CAGR of more than 15 percent during the forecast period of 2014-2018.
Part of the reason for this growth is the changing regulatory landscape in China. The introduction of regulations that allow banks to acquire majority stakes in insurance companies has had a significant impact on market dynamics. Additionally, regulatory authorities have recognized the potential of the bancassurance model in this country and have relaxed their norms to encourage private insurance players to integrate with banks. Foreign insurance players have also seen this as a potential growth opportunity and are entering China by collaborating with the domestic banks.
Banks have seized upon these regulatory changes in an effort to increase their profitability by expanding product portfolios. The bancassurance model allows banks to tap into the existing need of individuals and enterprises for comprehensive financial planning, which includes insurance products. The addition of insurance products to a banks product portfolio (with life insurance accounting for more than 33 percent of the bancassurance market in China) opens up other income streams and enhances the bank’s revenue. According to TechNavio research, it is also easier for the banks to cross-sell insurance products along with their own financial credit products that have uncertain degrees of default repayments attached such as mortgages, credit cards, and consumer finance.
To determine the scenario for these vendors in the next 3-4 years, TechNavio analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.
If you are interested in more information on this topic and our upcoming research on Bancassurance Market in China 2014-2018, please send an e-mail to media@TechNavio.com
About TechNavio
TechNavio is a leading technology research and advisory company with a global coverage. We focus on emerging technology trends that can shape the market. We identify and explain these trends to our customers to help them take better decisions.
TechNavio models the trends using a mix of quantitative and qualitative tools in its proprietary research methodologies. We build forecasts across market segments and geographies based on the trends identified. These forecasts and analysis are used to help our customers identify new and existing opportunities in their markets. We also help customers assess their competitive position in a changing market scenario.
TechNavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape of Bancassurance Market in China. Our analysts obtain the information using a combination of the bottom-up and top-down approaches, besides using in-house market modeling tools. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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Founded in 2003, TechNavio has about 200 analysts globally. We cover more than 500 technologies across 80 countries. Our analysts are closely monitoring the market every day by talking to all the industry participants. We have proprietary databases that provide us with a complete perspective of the market. TechNavio develops over 2000 pieces of research deliverables every year.
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