Does bancassurance participation deliver market power? The pivotal role of ownership structure

This study examines whether bancassurance participation is associated with the market power of Chinese life insurers and whether this relationship differs across ownership structures. Based on a balanced panel of 62 Chinese life insurers from 2011 to 2023, this study estimates a dynamic panel model using system GMM. Greater reliance on bancassurance premium income is associated with stronger market power, while changes in the proprietary agency channel provide supplementary evidence on insurers’ distribution strategies. Ownership structure further shapes this relationship. Group affiliation strengthens the bancassurance effect, whereas foreign-funded ownership weakens this positive effect. However, foreign-funded group-affiliated insurers still exhibit a positive bancassurance effect. Robustness tests support the positive relationship between bancassurance participation and market power, although the moderating effect of foreign-funded ownership is sensitive to the alternative market power measure.