A Practical Approach to Blend Insurance in the Banking Network
Panayiotis G. Artikis
University of Piraeus - Department of Business Administration
City University - Cass Business School
Sotiris K. Staikouras
City University - Cass Business School; ALBA Graduate Business School
Journal of Risk Finance, Vol. 9, pp. 106-124, 2008
The papers looks at the main empirical findings related to the bank-insurance model and outlines the market practices across the world. Regardless of the methodological framework employed, the literature conclusions are decidedly mixed. Such results are indirectly supported by the uneven success of the phenomenon at a global scale. The globalization of financial markets and regulatory innovations, across sovereign regions, are presented as the market forces that shape the bank-insurance interface. Nonetheless, it is not clear whether re-regulation is the cause or response to globalization, and vice versa. Some of the incentives to the formation of financial conglomerates are potential rise in profitability, product expansion, wider customer base, lower distribution costs, stronger brand names, improved products and services, reputation-related gains, as well as more automated and simplified financial transactions. Finally, a number of bancassurance products are discussed, and market realities point out towards three main bank-insurance modes of entry.
Keywords: Financial institutions, Banks, Insurance products, Bancassurance
JEL Classification: G15, G21, G22Accepted Paper Series
Date posted: November 26, 2007 ; Last revised: November 24, 2008
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