Bancassurance

Bancassurance refers to the cooperation of legally separate sectors of financial services such as credit institutions ( banks, savings banks, building societies ), insurance companies, and investment companies as well as the outcome of this process. ( :; " Bancassurance " double dt banca assurence ) used in some literature there is also the spelling Assurance International Bank for this is also the term bancassurance.

One can therefore distinguish financial services provider, intermediaries and bancassurance bancassurance advisors. Financial services provider are collaborations of the above financial service providers for the purpose of a coordinated product range for the entire demand for financial services from a single source. The cooperation can take place within an affiliated group or on a contractual basis between legally independent financial service providers. Bancassurance intermediaries are financial intermediaries that receive products from multiple independent provider with the goal in their mediation service to be able to cover all the needs for financial services. Bancassurance consultants are usually well intermediaries; only in the case of insurance consultants is legal clarification that these are only advisory on behalf of clients are engaged without convey themselves. Part of bancassurance in any case, a wide range of financial services. The bancassurance developed from the early 1970s.

Development

The various financial services industries developed historically separated. For security demanded the statutory provisions that banking and savings services, home loan business, insurance operations and investment activities shall be carried out by legally separate companies. Only recently, since about the 1970s, it was increasingly becoming a worldwide cooperation of companies of various industries by providers through group formation or contractual cooperation. This was offset by long in many countries legal impediments. In the mediation but there was a very long time, close cooperation. In particular, banks and savings banks have very early conveys products of insurers, building societies and investment firms. A special dynamics developed the process, as insurance intermediaries systematically took over the procurement of other financial services products.

Bancassurance products are offered for both private and institutional investors.

Business Basics

The advantages of bancassurance insist on customer and supplier side.

On the customer side, a comprehensive solution for the needs of financial services is to be achieved. Both should all demand a seamless coverage and overlap of the parts still offered by legally independent companies will be avoided as such lead to unnecessary costs.

On -party or intermediary page its own expertise in the field of financial services should be as comprehensive as possible exploited to therefore take maximum advantage of the customer connection. In addition, a well- connected client relationship is considered to be stable. Customers who do not have bancassurance alliances with other relations, are always at the risk of poaching. In particular, long-term contracts such as loans, especially housing loans, for example, by building societies, life and health insurance bring about a lasting customer relationship.

However, in practice, for reasons of cost, these ideal conditions are not often achieved. A holistic approach would require an intensive study of the demand situation of clients who are not usually in a position to determine their needs themselves. Consumer advocates often complain that this investigation for cost reasons, but mainly due to lack of knowledge of the agent, does not occur. Ultimately the result not of demand but by the interests of the commission agent or profit interest of the provider would be determined. Thus, gaps would remain unnecessary and completed contracts. Preference is given to long-term contracts would just completed to ensure customer connection. An exact balance of the products between legally independent providers is often not easy and is therefore sometimes incomplete, so that there is an overlap, the customer impose unnecessary costs.

Legal framework

The historically legally justified fragmentation of financial services could be alleviated only slowly. Originally Group even alliances between insurers and banks were banned in the United States. This ended only through the creation of Citigroup in 1998. In the UK, the universal bank model that issue credit and can accept customer funds was long unknown, so that there was fragmented even banking.

In Germany there was a long time a close cooperation between the savings banks and public insurers. The cooperative banks have a private insurer, the R V insurance founded. Later, large banking groups and insurance groups have each insurers or banks bought added so that today there are comprehensive bancassurance groups. There are also close links with investment companies and building societies. This interdependence has been legally taken into account that in 2002, the previously separate regulatory agencies has been for insurers, banks and stock exchange transactions on a joint institution, the Federal Financial Supervisory Authority, transferred. However, on the relevant operations must be operated by legally independent companies ( banks, building societies, insurance companies and investment companies). Separate supervisory laws still apply to the respective transactions. However, since the control of the owner was taken into custody laws in order to meet the linkages between different companies cater to corporations.