Potential Analysis: Digital Bancassurance in Europe

POTENTIAL ANALYSIS

DIGITAL BANCASSURANCE IN EUROPE

Digital Bancassurance keeps growing
Insurance premiums that are managed via
Digital Bancassurance channels are on a
growth trend: In the next ten years the
market volume is expected to grow to around
23 billion Euros in Germany alone.

Strong online service channels
Our experts predict the emergence of
billion Euro markets all across Europe.
Especially the integration of online offerings
gives banks and insurers the opportunity to
expand existing business models.

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MARKET VOLUME

POTENTIAL OF DIGITAL BANCASSURANCE CAN BE MISJUDGED

Many decision-makers and digitization managers in banks are not aware of this potential. Integrating digital insurance solutions into your online banking can deliver real value for savvy online customers.

Tim Kunde

CEO and co-founder of Friendsurance

A robo-advisor can understand a lot, but not the individual needs and concerns of the customers. We thus see digital bancassurance platforms to be an extension of the traditional bancassurance business, not a substitute.

Tim Kunde

CEO and co-founder of Friendsurance

MARKET PENETRATION

COSTUMER DEMAND FOR DIGITAL PRODUCTS INCREASES

In a representative survey¹ over half of the respondents said they were interested in managing their insurance contracts via their online banking account. Based on these results our experts predict that by 2023 at least 5% and by 2028 even 13% of existing contracts will be managed through digital bancassurance solutions.

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Further details can be found in
the corresponding press release

According to a potential analysis by the insurance platform Friendsurance, digital bancassurance in Germany will reach a market volume of some 8 billion Euros in five years. By 2028, the Berlin insurance broker.... [more]

DIGITAL BANCASSURANCE IN EUROPE

EMERGENCE OF A BILLION-EURO MARKET

BACKGROUND

Digital Bancassurance describes the management and optimization of insurance matters through banks, usually within online banking offers.
Many experts see digitization as a promising opportunity to spur the traditional banking sector.
A reason for the upcoming development is the customer demand to manage all finance and insurance matters in one central platform.
What is accelerating this process enormously is the EU PSD2 directive that obliges banks to make bank account data available as well as to provide access to corresponding interfaces in the future.

ASSUMPTIONS

Based on statistics on the use of online banking ² sand the development of insurance premiums per capita³ our experts predicted the potential of digital bancassurance products in the main european markets⁴.
For realistic forecasts concerning the use of online banking offers for the next 5 to 10 years, the development of smartphone use was taken as a model. In recent years, smartphones have gained a high level of acceptance and are considered disruptive technology. Many market players estimate similar dynamics concerning online banking products.
With the current widespread use of online banking products and market-specific factors taken into consideration, the use of online banking is predicted to keep growing further.

YOUGOV-SURVEY

YouGov market research experts were instructed to conduct a representative survey to determine the interest in digital bancassurance products.
The results: more than half of the german respondents would like to use digital bancassurance products. The interest in the particularly valuable target group from age 25 to 55 is extraordinary high. Two out of three respondents stated their intention to view, manage and optimize their insurances on their online banking platform.
The range of those products will therefore expand in the following years.
Our experts derive from this that in 2023 at least 10% of the interested persons will use such products. For 2028, the share is expected to grow to 25%.

FOOTNOTES

¹ This data is based on an online survey of YouGov Deutschland GmbH with 2037 participants. The survey was conducted in the time period from 01.08.2018 to 03.08.2018. The results are representative for the over 18 years old german population .

²
https://de.statista.com/statistik/daten/studie/4102/umfrage/online-banking-in-europa/

³
https://www.gdv.de/de/zahlen-und-fakten/versicherungsbereiche/ueberblick-4580

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