A practical approach to blend insurance in the banking network

Abstract

Purpose – The purpose of this paper is to look at the main empirical findings related to the bank-insurance model and to outline the market practices across the world. The market dynamics underpinning the bancassurance phenomenon are analyzed alongside discussions of the various bancassurance products and bank-insurance modes of entry. Design/methodology/approach – The paper presents a brief survey of the bank-insurance trend and provides an insight into the underlying dynamics and corporate structures of financial conglomerates. Findings – There is an uneven success of the bancassurance phenomenon across the world. It is not clear whether re-regulation is the cause or response to globalization, and vice versa, which in turn both shape the bancassurance arena. A number of incentives for the formation of financial conglomerates are identified. Finally, three modes of entry have been documented to reflect market realities. Originality/value – The paper will be of value to those interested in financial conglomerates, banking and insurance. It is suitable for academics and practitioners alike.