Milan, 04/11/2024 – In the first half of 2024, the bancassurance sector in Italy recorded significant growth compared to the first six months of 2023: premiums written in the Life business amounted to 55.5 billion euros, with an increase by 16.3%, while Non-Life recorded an increase of 7.9%, reaching 23.8 billion euros. In line with this trend, banks are adopting targeted and differentiated strategies: in the Life sector they are increasingly oriented towards internalisation, in the Non-Life sector they prefer to establish long-term strategic partnerships (JVs and/or distribution agreements) with companies specialized in the management of risk. This is what emerges from research by Excellence Consulting, which conducted an analysis of the top 15 leading Italian banks in bancassurance, comparing 2018 data with 2023 data: Intesa Sanpaolo, UniCredit, Banco BPM, BPER Banca, Monte dei Paschi of Siena, BancoPosta, BNL – Gruppo BNP Paribas, Crédit Agricole, Banca Mediolanum, Credem, Fideuram, FinecoBank, Banca Generali, Azimut, Allianz Bank.
In detail of the study, in the Life sector, internalisations by banks in 2023 increased by 20% compared to the 2018 figure, also following the Danish Compromise (the regulatory framework provided for by art. 49 of the CRR – Capital Requirements Regulation, approved by the EU in 2012 with the presidency of Denmark, hence the name, ed.), which favors the integration of companies within banking conglomerates from a capital point of view. According to Excellence Consulting, the captive model allows banks to maximize the sale of life insurance policies, increasing the productivity of the networks by over 25% compared to joint venture models and/or distribution agreements. The analysis confirms what is happening on the banking risk table. After Intesa Sanpaolo and Poste, Banco BPM and UniCredit have also started projects to close the joint ventures in force with their partners: the objective is to create captive companies in Life. Icrea has signed a long-term distribution agreement with Cardif, thus completing the sale of BCC Vita. MPS is reviewing its bancassurance strategy in view of the expiration of the agreement with AXA, expected in 2027.
In the Non-Life sector, banks maintain collaborations through joint ventures or distribution agreements with insurance companies, with the exception of companies such as Intesa Sanpaolo, Poste, BNP and Crédit Agricole, which have internalized by creating captive companies. It should be underlined that the Non-Life structure is historically within the two Italian ones, while the two French ones reflect the transalpine tradition of having such internal structures. Among the partnerships, those of UniCredit with Allianz, Credem with Reale Mutua and the most recent one of Icrea with Assimoco stand out. Banco Desio is selecting its partner. The “fractionation” caused by the bankruptcy of Eurovita opens up new opportunities and dynamics in the banking-insurance scene in the Life sector. However, Excellence Consulting’s analysis highlights a generalized growth in Non-Life premiums, regardless of the organizational model adopted. It should be noted that in the non-motor Non-Life classes, the market share reached 12.2% in 2023.
The report highlights, both for the Life and Non-Life sectors, the growing importance of commissions related to insurance coverage in banks. These commissions now represent 15.9% of revenues for commercial banks and 29% for network banks, values that are also growing following the reduction in interest rates and the need to increase commission revenues.
“Bancassurance is experiencing a second youth, a new phase of growth – says Gianluca Zanini, partner of Excellence Consulting. – Banks are dedicating ever greater attention to the insurance business, which also represents a strategic value for strengthening customer loyalty. The evolution in value creation requires targeted investments in training, communication and digitalization.”
“In the Life sector, the opportunity is to consolidate and further improve the commercial action of banks – explains Maurizio Primanni, CEO of the Excellence Group. – I would like to focus on Damage coverage, which represents an important opportunity for growth. To fully seize the potential, a personalized consultancy approach is essential. A holistic offer, integrated between digital and physical channels, will allow banks to effectively respond to customer needs, increasing commission revenues and strengthening the role of bancassurance in the service strategy.”
