The global bancassurance market

With the notable exception of the US domestic market, ‘bancassurance’ represents a significant channel for the sale and distribution of insurance products in much of the world. Given the prominence of bancassurance as a distribution channel in the insurance industry, in recent years, bancassurance has been a key component of insurance sector M&A transactions. Bancassurance can be central to an insurance M&A transaction in a number of respects, from due diligence of key bancassurance relationships of the target insurance company to the negotiation of a new bancassurance relationship as part of the overall M&A transaction. This article reviews what has been driving bancassurance activity; the key commercial, legal and regulatory issues that arise on bancassurance transactions; and what the future may hold for this market.