dominate the creditor insurance market, although new rules this year, which allow borrowers to change their creditor insurance on any policy anniversary, will help other insurers to target this business.
Teather & Greenwood analyst Mr Tim Young agrees, pointing out that the most successful European bancassurers
operate in France and Spain, where the life policies being sold are more like savings accounts than the complicated pensions sold in Britain.
We would typically expect to align the Issuer Default Rating (IDR) of leading French bancassurers with that of the parent banking group, with the Insurer Financial Strength rating one notch higher, reflecting a baseline recovery assumption of "good", better than the "average" recovery assumption for senior unsecured creditors.
Bancassurers benefit from banks' wide distribution reach, including their branch networks, and from the backing they can give to support product innovation and customer service.
sold simple insurance products to mostly middle-market branch customers, the universal bank offers a full spectrum of complex financial products to both middle-market and high-net-worth customers through a variety of distribution channels.
London: Fitch Ratings said French mutual insurance companies will continue to lose market share as rising regulatory costs threaten their ability to compete with traditional insurers and bancassurers.
Traditional insurers are targeting health and protection insurance as strategic areas for growth, while bancassurers are stepping up competition in the property and casualty insurance market.
London/Paris: French mutual insurance companies will continue to lose market share as rising regulatory costs threaten their ability to compete with traditional insurers and bancassurers, Fitch Ratings says.
We expect mutual insurers (and traditional insurers) to target bancassurers' customers following the introduction of new rules in January 2018 allowing borrowers to change their creditor insurance provider on any policy anniversary.
A court decision to ban designation clauses, which could effectively grant a single pension benefit insurer a monopoly over group protection business in certain industries, will help open the market to traditional insurance companies, mutual insurers and bancassurers
. The credit profiles of those that are able to take advantage could benefit, but competition will be fierce.