Bank Affiliation Influence on Life Insurers’ Performance Before and after the Financial Crisis

Forthcoming, Journal of Economics and Management ISSN 1732-1948

45 Pages Posted: 23 Feb 2017

See all articles by Lucia Spotorno

Lucia Spotorno

Bocconi University - Department of Finance

Ornella Moro

Università degli Studi di Sassari - Department of Economics and Business

Luisa Anderloni

University of Milan - DEAS

Date Written: December 31, 2016

Abstract

The article analyses the link between Italian life insurers’ profitability and bank affiliation. It also examines the influence that the differences in product mix and distribution costs displayed by bank affiliated versus traditional insurers has on results, and the changes that the big financial crisis caused in the previously established correlations.

Our results highlights that, until 2007 neither distribution efficiency nor being bank affiliated significantly affected performance. Product mix composition did not influence results as well. After the start of the big financial crisis though, both distribution efficiency and bank affiliation prove to be crucial in fostering performance. Moreover, adverse economic conditions make product mix revision crucial in order to adapt to changes in demand and sustain profitability.

Keywords: bancassurance, life insurance, economic performance, Italy, financial crisis, insurance market

JEL Classification: G21, G22, L25, M21

Suggested Citation

Spotorno, Lucia and Moro, Ornella and Anderloni, Luisa, Bank Affiliation Influence on Life Insurers’ Performance Before and after the Financial Crisis (December 31, 2016). Forthcoming, Journal of Economics and Management ISSN 1732-1948, Available at SSRN: https://ssrn.com/abstract=2921795

Lucia Spotorno (Contact Author)

Bocconi University - Department of Finance ( email )

Via Roentgen 1
Milano, MI 20136
Italy

Ornella Moro

Università degli Studi di Sassari - Department of Economics and Business ( email )

via Muroni 25
Sassari, Sassari 07100
Italy

Luisa Anderloni

University of Milan - DEAS ( email )

Via Conservatorio, 7
Milan, 20122
Italy
+390250321546 (Phone)
+390250321505 (Fax)

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