IT has a crucial role in making bancassurance profitable, but this requires a deep commitment on behalf of both banks and insurers to the establishment of beneficial partnerships and significant levels of investment. In a new report, Bancassurance Global Update: Lessons from Around the World in China, India, Europe, and US, Celent examines the success of this distribution channel in China, India, the United States, and Europe and looks at some IT best practices.
This report is a useful tool for insurers in countries such as Japan, China, and India, where bancassurance is an emerging channel. The sections on IT best practices will help inform insurers on where to focus their attention. It is also of interest to insurers in the US and countries in Europe such as the United Kingdom, where bancassurance has not been as successful as its continental counterparts. For these insurers, the question is "to be or not to be" in the bancassurance channel. This distribution channel has been made to work in these countries, and it is through case studies that some of the reasons become apparent.
"It's interesting to look at the key factors that differentiate a successful bancassurance model from one that just can't seem to get off the ground," says Catherine Stagg-Macey , co-author of the report and senior analyst with Celent's Insurance group. "It's a mix of macro variables that function independently of insurers' actions and elements such as business models and technology that are very much within their control."
This report analyses the bancassurance markets in Europe, the United States, China, and India, drawing on success stories in several places. It looks at best practice IT approaches that can be used in the management of this important distribution channel.