Market Insight Across India, Vietnam, Sri Lanka, Malaysia, Singapore, Thailand, and the Philippines

For decades, bancassurance remained on the periphery of Asia’s insurance landscape a convenient but limited channel. Today, it stands at the epicenter of financial distribution. Bancassurance is not merely a route to market; it is a strategic convergence of two financial pillars: banking’s customer trust and insurers’ product innovation.

Across the Asian continent, particularly in India, Southeast Asia, and emerging economies like Sri Lanka, the bancassurance model is showing robust promise. The business case is compelling: built-in distribution infrastructure, data-rich customer relationships, and regulatory encouragement for financial inclusion.

Banks are no longer just custodians of capital; they are becoming holistic financial wellness providers. Insurance companies, in turn, are leveraging this access to deliver personalised, digitally enabled protection and investment products.

Source: Roland Berger (2024), BCG Southeast Asia Bancassurance Report (2024), IRDAI Annual Report (2023-24)

India’s bancassurance landscape has witnessed exponential growth over the past decade. In FY 2024, the market was valued at USD 109.4 billion and is projected to reach USD 197.8 billion by 2034, at a CAGR of 6.1% (Expert Market Research, 2024). The Insurance Regulatory and Development Authority of India (IRDAI) has endorsed open architecture, allowing insurers to partner with multiple banks. This has fostered a competitive ecosystem.

Bancassurance now accounts for ~42% of private sector life insurance new business premiums. Strategic tie-ups like HDFC Life-HDFC Bank, SBI Life-SBI, and ICICI Prudential-ICICI Bank have created vertically integrated models with strong cross-sell ratios and persistency metrics exceeding 80%.

Bancassurance contributes more than 50% of total individual life insurance sales in the Philippines. Regulatory support via the Bancassurance Act of 2012 enabled insurers like Sun Life, AXA Philippines, and Pru Life UK to enter exclusive agreements with major banks. In 2023, the Philippines’ life insurance industry posted over USD 3.8 billion in GWP, with half of that through bancassurance channels.

Source: Insurance Commission of the Philippines (2023 Annual Report), BCG SEA Bancassurance Report (2024)

Digital integration is a key driver here: providers have rapidly rolled out app-based insurance applications embedded into mobile banking platforms.

In Malaysia, bancassurance accounts for ~45% of life insurance sales. The market is well-regulated under the Financial Services Act and characterized by stable, long-term bank-insurer tie-ups such as CIMB-Sun Life and Maybank-Etiqa.

Singapore represents a high-water mark for bancassurance globally, with estimates of over 60% of life insurance premiums sourced through banks. Long-term exclusive partnerships such as DBS-Manulife (a 15-year, USD 1.2 billion deal) and OCBC-Great Eastern showcase how bancassurance can deliver scale, customer engagement, and profitability simultaneously.

Source: Monetary Authority of Singapore (MAS), Bank Negara Malaysia (2023 Industry Review

Vietnam’s market opened significantly following regulatory shifts in 2017, enabling exclusivity in bancassurance contracts. Vietnam Bank-Manulife’s landmark deal, valued at USD 1.2 billion, set a new benchmark for the region. Bancassurance penetration currently stands at 35-40%, with digital distribution expected to drive the next growth wave.

In Thailand, bancassurance accounts for 40-45% of life insurance sales. Banks such as SCB and KBank have leveraged mobile ecosystems to deliver both mass and high-net-worth insurance solutions, including unit-linked and investment-linked policies.

Source: Thai Life Assurance Association, Vietnam Insurance Association (VIA), EY ASEAN Bancassurance Report (2023)

While relatively nascent, Sri Lanka is witnessing a strategic push toward bancassurance. Major insurers like Union Assurance and Softlogic Life report that 25-30% of new business is sourced through banking partners.

Recent bancassurance partnerships—such as AIA with Commercial Bank of Ceylon and Union Assurance with Sampath Bank—have reinforced this momentum, driving a notable increase in Bancassurance’s market share.

With digital penetration rising and the CBSL encouraging financial inclusion, bancassurance is poised to evolve rapidly.

Source: Insurance Regulatory Commission of Sri Lanka (IRCSL Annual Bulletin, 2023, Market reports)

While Cambodia’s financial sector has undergone significant expansion over the last decade, its bancassurance segment remains in a formative but promising phase. The number of licensed insurers grew from just 10 in 2010 to 32 by 2024, with 18 general insurers, 14 life insurers, and over 35 insurance agents.

While the overall insurance penetration remains below 1% of GDP, early signs indicate that bancassurance is gaining relevance as a scalable model for insurance distribution. Leading banks such as ACLEDA Bank, ABA Bank, and Canadia Bank have begun forming alliances with domestic and foreign insurers to embed life and credit-related insurance products within banking services.

Forte Insurance, Prudential Cambodia, and Manulife Cambodia are pioneering this channel, with Prudential reporting that over 30% of new life insurance premiums originated through bancassurance partnerships in 2023. Credit-linked life insurance and digital savings-cum-protection plans are proving to be key drivers, especially among salaried workers and SME customers.

The National Bank of Cambodia’s efforts to enhance interoperability of payments (notably via Bakong) and broaden financial access through MFIs indirectly support the expansion of bancassurance. However, regulatory clarity, especially regarding exclusive arrangements and product bundling, is still evolving.

Source: National Bank of Cambodia (NBC Annual Report 2023), Insurance Regulator of Cambodia (IRC),  World Bank Cambodia FS Indicators

Bancassurance is not just growing in size but also in strategic importance. Here’s how key markets compare in terms of penetration:

Source: Respective national insurance regulators; BCG & Roland Berger white papers (2023-2024)

The growth outlook for bancassurance across Asia remains highly favorable, driven by macroeconomic stability, increasing digital adoption, and evolving consumer preferences.

India’s bancassurance market is projected to grow at a CAGR of 6.1% over the next decade, reaching USD 197.8 billion by 2034. This growth will be fueled by regulatory reforms allowing multi-insurer partnerships, increased Tier-2/3 city penetration, and digital onboarding infrastructure.

Countries like Vietnam, Thailand, and the Philippines are expected to post 6.5–7.0% CAGR through 2032. Large-scale exclusive partnerships (e.g., DBS-Manulife, VietinBank-Manulife) are creating consistent revenue streams while expanding insurance penetration.

The Asia-Pacific region is forecasted to contribute nearly 50% of global premium growth in bancassurance by 2030. Mature markets like Singapore and Malaysia are stabilizing with digital refinement, while frontier markets like Sri Lanka and Cambodia offer greenfield growth.

Source: IMARC Group (2024), Roland Berger (2024), IRDAI (India), and regional insurance associations

Asia is undergoing one of the most significant urban shifts in human history. By 2030, the region will add over 700 million urban residents, reshaping financial services distribution. Urban consumers demand accessible, tech-enabled, and trustworthy solutions—precisely where bancassurance excels.

This urban transition is accompanied by:

• Rising middle-class consumption: Increasing household income prompts demand for protection and savings products.
• Mobile-first banking habits: Mobile penetration in ASEAN countries averages over 85%, enabling insurers to integrate offerings into daily digital journeys.
• Trust in financial institutions: Banks remain among the most trusted entities, especially for long-term financial decisions, offering insurers a platform to build relationships.

These socio-economic conditions make bancassurance the ideal channel to reach first-time insurance buyers, especially in high-growth cities and peri-urban areas.

Source: Asian Development Bank (ADB Urbanisation Outlook, 2023), World Bank (Urban Finance Review)

Bancassurance offers a robust, recurring cash flow model that is increasingly attractive to investors. The strategic integration of banking and insurance services creates a financial ecosystem where customer lifetime value can be maximized.

Key Value Drivers:

• Lower acquisition costs: Banks provide insurers with pre-qualified customer pools, cutting down on expensive lead generation. CAC is estimated to be 30–40% lower than traditional agency models.
• Strong persistency and cross-sell: Cross-selling credit protection, wealth management-linked insurance, and health riders results in increased product density.
• Recurring premiums: Bancassurance often locks in customers via salary-linked premiums or pre-authorized debits, ensuring high renewal rates.

Strategic Risks:

• Governance alignment: Mismatched incentives between insurers and banks can affect productivity.
• Regulatory complexity: As markets mature, regulators are tightening suitability norms, requiring significant compliance infrastructure.
• Digital capability gaps: Not all banks are digitally mature, which can slow down straight-through processing (STP) or lead generation.

Nevertheless, PE and institutional capital are flowing into bancassurance infrastructure—including middleware/API platforms, analytics engines, and regional consolidators.

Source: Roland Berger (2024), Deloitte SEA Bancassurance Execution Study, EY Asia-Pacific Bancassurance Playbook (2023)

Bancassurance has emerged as the most cost-effective, scalable, and digitally adaptable distribution model in Asia. Its success depends on how stakeholders evolve their strategies for the next wave of transformation.

For Insurers:

• Invest in modular product design for personalized offers.
• Deploy real-time analytics to drive smarter lead conversion.
• Focus on advisor enablement and compliance tools to build lasting partnerships with banks.

For Banks:

• Move from product sellers to life-stage advisors.
• Use CRM and transaction data to offer hyper-personalized insurance.
• Monetize existing customer bases through API-based embedded models.

For Investors:

• Target enablers of bancassurance infrastructure: SaaS CRM tools, digital onboarding platforms, and data/BI providers.
• Prioritize deals with scalable regional footprints and high renewal ratios.
• Push for ESG-aligned financial inclusion models in frontier markets.

Those who invest in seamless, compliant, and data-rich bancassurance models will shape the next generation of Asia’s financial inclusion and wealth protection story.

Bancassurance is not just a distribution model—it is the operating system of Asia’s emerging insurance economy. It stands as the cornerstone of insurance distribution strategy, redefining how protection and savings solutions reach customers. As the market matures, success will be measured not merely by sales volumes but by the ability to deliver seamless, trusted, and value-driven customer journeys—where digital intelligence meets human empathy and scale meets personalisation.

For stakeholders across the value chain, this presents a clear call to action:

For Insurers:

• Invest in hyper-customised sales processes that reflect bank customer segments and behavioural profiles.
• Leverage automatic, AI-led underwriting for faster onboarding and improved customer experience.
• Design modular, flexible products that can be easily embedded within banking touch-points.
• Deliver real-time, omni-channel servicing and claims support to enhance trust and satisfaction.
• Align performance metrics and frontline training with the bank’s sales rhythm and priorities.
• Build joint data platforms and shared insights to support customer lifecycle management.

For Banks:

• Shift from being product sellers to lifelong financial and risk advisors.
• Build and scale data-rich, digitally integrated advisory models that anticipate customer needs.
• Embed insurance across customer journeys—from onboarding to wealth management and lending.
• Equip frontline staff with tools, incentives, and insights to engage customers meaningfully.
• Adopt shared success KPIs and governance models to align with insurer partners.
• Use analytics and AI to drive smart segmentation and personalised offers.

Future success in Bancassurance will be defined by the delivery of seamless, trusted, and value-rich customer journeys — where digital convenience meets human connection. For banks and insurers alike, sustained performance will depend on shared success metrics, real-time data collaboration, smart segmentation, embedded journeys, and frontline alignment.