Analysis of integration processes of banking institutions and insurance companies in Ukraine

Abstract

The processes of globalization, technology improvement and increasing competition put banks and insurance companies in need of increasing and changing the range of their services. The requirement to increase the level of profitability of their own activities stimulates the integration processes of banks and insurance companies and is one of the options to increase the supply of financial assets and increase demand for them. Was determined that when considering the integration processes between banks and insurance companies, it is important to study such areas of cooperation as the joint formation and use of financial resources, the creation of joint financial products and the conduct of joint marketing policy. During the analysis was proved, that bank deposits occupy the largest share among all other financial instruments and, as a result, provide insurers with the largest share of financial income, and investing in the capital of insurance companies remains a priority source of credit and investment resources for banks. The article proves that in Ukraine the most promising in the functioning of banks and insurance companies is a form of cooperation such as banсassurance, as the population has a greater demand for banking products and trusts more banks than insurance companies do. This concept of cooperation will lead to a synergistic effect, i.e. the demand for the purchase of one product (banking) will facilitate the purchase of another (insurance), which is the main purpose of bancassurance. The study identified the main benefits of cooperation between banks and insurance companies, including increased service because of a combination of banking and insurance products, providing non-traditional banking services, creating sources of additional income, reducing the cost of certain insurance services.