Asia Pacific drives 54% of bancassurance market growth

The world’s bancassurance market size is projected to reach $515.8b from 2024 to 2028, with a compound annual growth rate (CAGR) of 7.79%. The growth contributed by Asia Pacific is seen at 54%. For the year, the market may expand by 6.74%, according to Technavio’s latest report. This growth is fueled by the increasing need for insurance and the emergence of digital marketing platforms, though challenges such as reputational risk could impact the market’s trajectory. The proliferation of the Internet and smart devices has profoundly impacted the bancassurance market, particularly through digital marketing platforms like social media. As of 2021, over 60% of the global population had Internet access, a figure expected to rise during the forecast period. Technological advancements have enabled bancassurance firms to provide more efficient services, particularly through mobile-based platforms and digital sales. High-speed internet and mobile applications have made it easier for consumers to purchase insurance, contributing to the sector’s growth. Furthermore, venture capital and technology companies are heavily investing in this space, driving further innovation and efficiency through strategic alliances, joint ventures, and financial holding companies. These partnerships have enhanced cross-selling opportunities, financial advisory services, and customer awareness campaigns, all of which are crucial for increasing market share.