GCC Bancassurance Market

GCC Bancassurance Market Size and Share:

The GCC bancassurance market size was valued at USD 24.08 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 35.37 Billion by 2033, exhibiting a CAGR of 4.15% from 2025-2033. The market is driven by the increasing partnerships between insurance providers and well-known banks of the region, heightened technological innovations with the integration of blockchain and artificial intelligence (AI), and rising awareness about the importance of purchasing various insurance products.

Insurance products are seen as important assets because they help protect finances and present a proper safety net for several unforeseen incidents. As the region’s economies are diversifying and developing, insurance is becoming a more recognized and valued financial product. Traditionally, insurance penetration in GCC countries is increasing int various GCC countries. Another major driver of market growth in the GCC is the rapid digital transformation taking place across the region. Technological advancements have made it easier for banks and insurance companies to offer innovative insurance products and services. The widespread use of smartphones, high internet penetration, and increasing adoption of digital banking services are creating new avenues for the distribution of insurance products.

In the GCC region, there has been a noticeable shift towards deeper and more strategic partnerships between banks and insurance companies. Banks are increasingly recognizing the potential of offering insurance products as part of their portfolio for offering more comprehensive financial services to customers. On the other hand, insurance companies are keen to leverage the established customer bases and distribution networks of banks for reaching a wider audience. These partnerships allow insurance companies to reduce the cost of customer acquisition, while banks benefit from additional revenue streams. This trend is evident in countries like Saudi Arabia, where large banks such as National Commercial Bank (NCB) and Riyad Bank have formed strategic alliances with local and international insurance enterprises to supply a variety of insurance products.

GCC Bancassurance Market Trends:

Regulatory Reforms and Government Initiatives

The GCC bancassurance sector is largely driven by regulatory changes and government policies aimed at increasing financial market diversification and penetration of insurance. For instance, the regulatory body in the UAE and Saudi Arabia has become more open to frameworks that encourage partnerships between banks and insurance companies in facilitating smoother distribution of insurance products. For example, the Saudi Central Bank has developed policies meant to strengthen governance and provide transparency in bancassurance relationships. The digital insurance regulations introduced in the UAE for 2024 are set to streamline bancassurance online product offerings, increasing customer confidence. This year, there have been a few product launches, such as digital life insurance plans with banks targeting the younger generation of technology-savvy people. The government-backed financial inclusion programs push the availability of insurance products through banks, especially life and health insurance. These reforms continue to lay the foundation for sustained growth in the GCC bancassurance market. As stated by Tasheel Legal Consultancy LLC in the news article in 2024, the UAE declared major reforms to its insurance industry through Federal Decree-Law No. 48 of 2023. This new reform aligns the insurance policies and structures with international standards. This law took effect from November 2023 and companies had to comply with it by May 2024.

Rising Digital Transformation and Fintech Integration

Technological advancements and fintech integration are key factors driving the market in the region. Banks and insurers are leveraging digital platforms, artificial intelligence (AI), and data analytics to provide seamless, customer-centric solutions. The proliferation of mobile banking and digital payment systems allows for the easy distribution of insurance products through digital channels, enhancing accessibility and convenience for consumers. In 2024, banks in the UAE and Qatar launched AI-driven insurance advisory tools embedded in banking apps to help customers choose personalized products such as savings-linked life insurance and critical illness plans. Additionally, fintech partnerships, like those witnessed in Kuwait, are enabling banks to offer microinsurance and on-demand policies, catering to changing customer needs. The integration of blockchain technology for policy management and claims settlement has further improved transparency and efficiency. This digital transformation trend aligns with the GCC countries' vision to establish robust, technology-driven financial ecosystems. Moreover, the IMARC Group stated that the GCC blockchain technology market size is expected to exhibit a growth rate (CAGR) of 70.2% from 2024-2032.

Growing Demand for Life and Health Insurance Products

The increasing perception of financial security and healthcare needs in the GCC region is bolstering the market growth. With rising healthcare costs and a growing expatriate population, there is significant demand for life and health insurance products distributed through banks. Banks are capitalizing on their extensive customer bases to cross-sell insurance policies, particularly bundled solutions that combine savings and health coverage. In 2024, major banks in Oman and Bahrain introduced health protection packages tailored for individuals and families, including critical illness coverage and hospitalization benefits. Moreover, demographic shifts, such as an aging population and changing lifestyles, have contributed to higher adoption rates of retirement-focused life insurance products. These products not only address financial planning but also align with increasing preference for long-term savings solutions. The convenience of purchasing such policies directly through banking platforms continues to reinforce bancassurance as a key growth channel in the region. The IMARC Group predicts that the GCC health insurance market is expected to reach USD 28.5 billion by 2032.

GCC Bancassurance Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the GCC bancassurance market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product type and model type.

Analysis by Product Type:

• Life Bancassurance
• Non-Life Bancassurance

Life bancassurance refers to the distribution of life insurance products through banking channels, offering policies such as term life insurance, endowment plans, savings-linked insurance, and retirement products. This segment is driven by growing consumer awareness of financial security and long-term savings, particularly among the expatriate population in the GCC. Life bancassurance products are often positioned as essential tools for wealth management and family protection, leveraging banks’ extensive customer bases for cross-selling opportunities. The increasing demand for savings-oriented and retirement planning solutions aligns with demographic changes, such as a growing middle-class population and evolving financial priorities. In addition, innovations in digital banking platforms have made life insurance products more accessible, allowing customers to purchase policies seamlessly through mobile banking applications.

Non-life bancassurance includes insurance products that provide coverage for areas such as health, property, motor, travel, and critical illness. This segment has witnessed considerable growth in the GCC due to rising demand for health and motor insurance policies, driven by regulatory mandates and increasing healthcare costs. The surge in infrastructure projects and property developments across the region has also contributed to a higher uptake of property insurance through bancassurance channels. In 2024, banks in Saudi Arabia and the UAE launched bundled non-life insurance products, such as home and travel coverage, to enhance value for customers. Additionally, the integration of digital claims processing and blockchain technology has improved customer experience and efficiency, further boosting demand for these products.

Analysis by Model Type:

• Pure Distributor
• Exclusive Partnership
• Financial Holding
• Joint Venture

The pure distributor model involves banks acting solely as intermediaries to sell insurance products without assuming any additional roles, such as underwriting or risk management. In this model, banks earn commissions for distributing insurance products on behalf of insurers, leveraging their vast customer networks and branch infrastructure. This approach offers a cost-effective way for insurance companies to expand their market reach while allowing banks to diversify their revenue streams. The pure distributor model is prevalent in the GCC region due to its simplicity and minimal operational risks for banks.

The exclusive partnership model involves a formal agreement between a bank and a single insurance provider, where the insurer exclusively offers its products through the bank’s distribution network. This model fosters long-term collaborations, enabling banks to offer tailored insurance solutions while insurers benefit from the bank’s established customer base. Exclusive partnerships allow for deeper integration of products into the bank’s service offerings, ensuring personalized solutions and targeted cross-selling strategies.

In the financial holding model, banks and insurance companies operate under a single financial conglomerate, sharing resources and infrastructure. This model allows for seamless coordination between banking and insurance operations, offering customers integrated financial solutions. Financial holding structures are particularly prevalent among large banking groups in the GCC, where conglomerates oversee a range of financial services, including bancassurance. The model enables cross-selling opportunities and creates economies of scale, enhancing profitability and market penetration.

The joint venture model involves banks and insurance companies forming a separate entity to develop and distribute insurance products collaboratively. In this arrangement, both parties share ownership, risks, and profits, fostering a synergistic relationship aimed at achieving mutual growth. This model is particularly effective in markets like the GCC, where banks and insurers seek to capitalize on each other’s strengths, such as customer networks and product expertise. Joint ventures enable the co-creation of innovative and customized insurance solutions, enhancing value for customers.

Country Analysis:

• Saudi Arabia
• UAE
• Qatar
• Oman
• Kuwait
• Bahrain

Saudi Arabia dominates the market owing to several factors. The important role of regulatory authorities is becoming instrumental in driving the market in Saudi Arabia. Regulatory reforms are enhancing transparency home operational efficiency, and compliance for both banks and insurance providers. In addition, efforts to regulate and encourage digital distribution channels are facilitating seamless access to insurance items via online and mobile banking platforms. Apart from this, the rising costs of healthcare and the increased prevalence of lifestyle diseases have contributed to growing interest in health insurance products distributed through banks. Banks are leveraging their extensive customer base and trust to cross-sell these insurance products, particularly to salaried professionals and small businesses. In 2024, several major banks in Saudi Arabia launched bundled products that combine savings components with life or health protection, catering to evolving consumer needs. Such product innovation aligns with the shift in customer preferences toward integrated financial solutions. Moreover, the IMARC Group states that the Saudi Arabia health insurance market is expected to reach US$ 12.1 billion by the year 2032.

Competitive Landscape:

Leading banks and insurers in the GCC are prioritizing digital transformation as a primary strategy to improve business performance. By leveraging advanced technologies such as artificial intelligence (AI), big data analytics, blockchain, and cloud computing, market players are enhancing the customer journey, streamlining processes, and delivering personalized insurance products. Banks are integrating insurance offerings directly into their online and mobile banking platforms, allowing customers to seamlessly access and purchase insurance solutions. Another prominent strategy adopted by key players in the GCC bancassurance market is the formation of exclusive partnerships between banks and insurers. Exclusive agreements provide insurers with access to a bank's extensive customer base and distribution network, while banks benefit from offering value-added services that generate additional revenue. For instance, in 2024, BankDohar partnered with Dhofar Insurance to promote the proper investment in appropriate insurance among the masses. They also aim to enable customers manage their insurance products and bank accounts in one platform.

The report provides a comprehensive analysis of the competitive landscape in the GCC bancassurance market with detailed profiles of all major companies.

Latest News and Developments:

• October 2024: Etihad credit insurance announced its plan to sign 2 memorandums of understanding (MoUs) with Saudi Exim Bank and Credit Oman during its participation in the annual general meeting of Bernie union. These MoUs aim to strengthen regional agreements and collaboration in numerous areas of insurance and risk management.

GCC Bancassurance Market Report Scope:

 
Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the GCC bancassurance market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the GCC bancassurance market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the GCC bancassurance industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.