Reportstack has announced a new market research publication on 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 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, the 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.
To view the table of contents and know more details please visit http://www.reportstack.com/product/151100/bancassurance-market-in-china-2014-2018.html