- FCA reports PPI complaints up in first half but others drop
- Use of contactless cards grew 17.8% in July compared with a year earlier
- Bank of England and FCA joint survey to better understand the current use of Machine Learning(ML) in UK financial services-main findings
- PwC analysis indicates that UK financial services firms’ efforts to grow their robo-adviser ranks are leading the rest of the world
- Juniper Research new study estimates MFS(Mobile Financial Services) will grow 70% to over $1tr by 2024
- Teleperformance Group(TDIBS) highlights that Artificial Intelligence(AI) could significantly speed up processing of mortgage applications
- MDOTM and Raiffeisen Capital Management announces a new strategic partnership over Artificial Intelligence(AI) development expired
- Auriga announces launch of its new WWS AI(Artificial Intelligence) module expired
- iManage and Cognia Law partner to deliver meaningful and practical Artificial Intelligence(AI) solutions to organisations globally expired
- 40-year mortgages becoming standard expired
- Inflation-beating fixed returns diminish due to rate cuts says Moneyfacts expired
- Fixed bond rates in UK plummet as providers scrap deals expired
8th October 2019
Bancassurance in Italy: An opportunity to improve banks’ profitability, says DBRS
DBRS expects banks to grow their life and non-life bancassurance activities in Italy. The prospects for the different markets are reviewed in a commentary entitled “Bancassurance in Italy – An Opportunity to Improve Banks’ Profitability”.
The key highlights:
• Bancassurance provides Italian banks with an opportunity to diversify their revenue base and improve profitability in a challenging operating environment.
• The bancassurance channel has a very strong position in the Italian life insurance market with over 60 per cent of total gross written premiums.
• This contrasts with the non-life market where bancassurance accounts for less than 7 per cent of the market.
Bancassurance started in Italy in the early 1990s following deregulation in the previous decade. Nevertheless, “the exponential growth of the bancassurance channel in Italy responded not only to changes in the regulatory environment but also to the pressures in the banking industry as a consequence of the sharp decrease in profitability of its traditional lending business, couple with changes in demand for financial services due to the aging population,” said Marcos Alvarez, Senior Vice President.
According to Nicola De Caro, Senior Vice President: “The outlook for the Italian non-life bancassurance sector remains positive as the penetration level in the Italian non-life segment at 1.9 per cent of Italy’s gross domestic product, is still significantly below the average of 4.5 per cent for the OECD countries, with increasing demand in health insurance and home protection.”
Read the full report: https://www.dbrs.com/research/351168/dbrs-bancassurance-in-italy-an-opportunity-to-improve-banks-profitability