The UK general insurance bancassurance is projected to grow at a compound annual growth rate (CAGR) of 8.1% from an estimated $4.6 billion in 2024 to $6.9 billion in 2029, in terms of direct written premiums (DWP), according to GlobalData, a leading data and analytics company.
GlobalData’s 2025 Global Bancassurance Market Report reveals that the UK’s bancassurance distribution channel accounted for a 4.1% share of the country’s general insurance DWP in 2024 and is projected to experience significant growth over the ensuing five years.
Manogna Vangari, Insurance Analyst at GlobalData, comments: “The UK bancassurance channel growth is fueled by the evolution of the online banking landscape and the emergence of embedded insurance opportunities. Nonetheless, challenging economic conditions and regulatory developments may pose obstacles to the expansion of the bancassurance channel over the next five years.”
UK banks are increasingly focusing on Bancassurance 2.0, shifting towards digital insurance solutions and services that integrate seamlessly with banking services, including payment cards and applications. Consequently, customers are offered a banking experience that incorporates insurance without requiring separate consideration.
According to GlobalData’s 2024 UK Insurance Consumer Survey*, sales through banks’ mobile apps accounted for 15.6% of total travel insurance sales in 2024—up from 10.6% in 2023. This growth is attributable to the user-friendly design of travel insurance products and the convenience offered by banking channels. Furthermore, premier credit card and packaged bank account tiers include complimentary travel insurance, further simplifying the process for consumers to secure coverage.
The online banking market is anticipated to expand at an annual growth rate of 11.3%, reaching a valuation of $16.2 trillion by 2030, according to GlobalData’s Digital Banking Report. This trend presents a significant opportunity for insurers and banks to enhance their digital distribution strategies.
Vangari adds: “As digital banks endeavor to differentiate their services and cultivate customer loyalty, embedded insurance emerges as an optimal solution, particularly when executed effectively. Embedded insurance stands as one of the most beneficial options for banks, as it not only generates additional revenue but also bolsters their brand and adeptly meets customer needs through instant subscription and by closing the insurance gap.”
According to GlobalData’s 2024 UK Insurance Consumer Survey, 42.7% of respondents indicated that brand reputation plays a role in their decision to purchase an insurance policy. If their preferred banking app introduces an insurance product, customers may be more receptive to it, given the comfort of a familiar environment.
Vangari continues: “UK banks are contending with challenges such as persistent cost inflation, changing credit conditions, and competitive pressures, which may affect profitability. To enhance customer engagement and satisfaction, banks are prioritizing innovation and the adoption of artificial intelligence to provide personalized services. By offering rapid responses and automated processes, they aim to attract additional customers and stimulate market growth.”
Banks face challenges from changing regulations and compliance needs, requiring new technologies for data security. Initiatives like the Payment Services Directive 2 and the open banking framework demand collaboration and faster innovation.
Moreover, the bancassurance channel will encounter increased scrutiny under the Consumer Duty imposed by the Financial Conduct Authority to ensure that its customers receive favorable outcomes from the insurance products sold in 2025.
Vangari concludes: “The integration of AI into the bancassurance channel is poised to significantly elevate customer experiences and enhance operational efficiencies. As the UK general insurance bancassurance market grapples with the challenges posed by slowing economic growth, the rising significance of embedded insurance and innovative digital banking services will undoubtedly shape its evolution over the next five years.”
*GlobalData’s 2024 UK Insurance Consumer Survey featured a panel of consumers aged 18+, with 4,016 respondents in 2024
