Banks in the Insurance Distribution Business – Controversial Issues of the Spanish Regulation and Reference to the Corresponding Provisions in the German Legal System

MRIC Working Paper No. 12

23 Pages Posted: 21 Jun 2012 Last revised: 23 Jun 2012

Date Written: June 21, 2012

Abstract

Bancassurance has grown to currently become a completely consolidated insurance distribution channel in the global market, even though it shows unequal levels of development depending on the social and economic characteristics of the different countries. Several factors have contributed to give this phenomenon a particularly important role in Spain, which has led to the specific incorporation of this channel in the Insurance and Reinsurance Distribution Act. However, the provisions laid down in the law have proven to be inadequate to cover such a complex phenomenon as bancassurance, with many varied manifestations that are not always in line with the single model provided by the Spanish law. After studying the historical causes of the Spanish development and the existing legislation, I will show the most controversial aspects of the Act 26/2006, and those that do not reflect the current situation of the market. The analysis is complemented by an examination of the treatment given to this distribution channel by the German legal system.

Keywords: Bancassurance, Spain, Germany, legal system, insurance, intermediary, distribution, mediation

JEL Classification: K23, K12, K33, G22, G21

Suggested Citation

Díaz Llavona, Covadonga, Banks in the Insurance Distribution Business – Controversial Issues of the Spanish Regulation and Reference to the Corresponding Provisions in the German Legal System (June 21, 2012). MRIC Working Paper No. 12. Available at SSRN: https://ssrn.com/abstract=2088759 or http://dx.doi.org/10.2139/ssrn.2088759

Covadonga Díaz Llavona (Contact Author)

Universidad de Oviedo ( email )

Private and Business Law Department
Avenida del Cristo s/n
Oviedo, Asturias 33006
Spain

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