Bancassurance and Retail insurance premiums
The evolution of the retail insurance brokers and bancassurance operators market in Chile demonstrates a nominal annual growth of 2.6% in the volume of intermediated premiums. Non-life insurance has been the driver behind the growth in the intermediation of bancassurance brokers, with a 9.2% year-on-year increase in volume as of the close of June 2023. Concurrently, life insurance retreated by 3% in bancassurance and 2.5% in retail brokers.
In terms of market size, the total intermediated volume at the close of June 2023 reached CH$1,075 billion, distributed as CH$632 billion in property damage coverage and CH$442 billion in life coverage. Analyzing by broker type, 86% corresponds to bancassurance, while the remaining 14% has been intermediated by retailers.
Intermediation commissions show a decrease as of June 2023 compared to June 2022. The average level of commissions on intermediated premiums was 16.9%, whereas the previous year's average was 17.3%. This decline has been primarily explained by a reduction in the average level of commissions in bancassurance, dropping from an average of 17.5% in June 2022 to 17% in June 2023. Meanwhile, the average level of commissions for retail brokers remained stable at 15.9%.
The top five brokers by intermediated volume intensified their clear leadership, and as of June 2023, BANCHILE, BANCOESTADO, SANTANDER, FALABELLA, and BCI collectively manage 75% of the volume intermediated by brokers (compared to 71% the previous year). Regarding the ranking of competitors with the highest year-on-year growth in market share, BANCOESTADO takes the first place with an advance of 4.51 percentage points of market share, followed by BANCHILE with a growth of 1.08 points. SCOTIA, CONSORCIO, and BICE complete the group of the top five competitors leading in the growth of their market share in the analyzed period.
