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Bank Insurance Consulting for Productive Partnerships |
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The cooperation between banks and insurance companies has been a constant presence on the financial services market for about thirty years, its beginnings being somewhere in the 1970s. This new formula of providing financial services was brought about by a series of factors, of which probably the most important were the benefits for both banks and insurance companies, as well as satisfying the more complex needs of their customers. The changes experienced by the global financial market also contributed to the advent of what is now referred to as
Banks have become an advantageous channel of distribution for insurance products, and this was possible through a variety of ways. One of them was insurance companies becoming the property of banks, in which case the bank became the major shareholder in the insurance company. Another means for the development of bancassurance was that of banks functioning as insurance agents; in such cases, a distribution alliance was built up, and the bank invested limited capital in exchange for being granted permission to sell the products of a certain insurance company. Bancassurance is also possible when the insurance products, but not the company itself, become property of a bank, which will then be their main distributor.
Regardless of the form of partnership between insurance companies and banks, the outcome was positive, as it helped achieved a much wanted goal, that of offering comprehensive financial services to customers. The financial needs of customers have evolved together with the development and complexity of the financial markets, and the need to develop new products that would satisfy their requirements completely was stringent. Merging insurance with banking facilities proved to be an excellent solution with respect to the clients |
