Bancassurance

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Related to bancassurers: bankassurer

Bancassurance

Insurance provided by a bank. For example, a bank could offer life insurance in addition to its savings, loan, and investment services. Proponents argue that bancassurance can streamline internal and government regulations. For example, a bank offering a mortgage may require borrowers to buy homeowners insurance; if bancassurance is available, the borrower could purchase a policy directly from the bank without needing to shop around. However, bancassurance is somewhat controversial; critics contend that allowing banks to sell insurance gives them too much control over the financial services sector. As a result, some countries prohibit it. The United States has allowed it since the passage of the Gramm-Leach-Bliley Act.
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Bancassurers dominate the creditor insurance market, although new rules this year, which allow borrowers to change their creditor insurance on any policy anniversary, will help other insurers to target this business.
However, their study focused on bancassurers only and still leaves the question open for assurbanks, the insurers who are doing banking business.
We first identify the major assurbanks and bancassurers in the post-GLB U.S.
Teather & Greenwood analyst Mr Tim Young agrees, pointing out that the most successful European bancassurers operate in France and Spain, where the life policies being sold are more like savings accounts than the complicated pensions sold in Britain.
We would typically expect to align the Issuer Default Rating (IDR) of leading French bancassurers with that of the parent banking group, with the Insurer Financial Strength rating one notch higher, reflecting a baseline recovery assumption of "good", better than the "average" recovery assumption for senior unsecured creditors.
Bancassurers benefit from banks' wide distribution reach, including their branch networks, and from the backing they can give to support product innovation and customer service.
Whereas bancassurers sold simple insurance products to mostly middle-market branch customers, the universal bank offers a full spectrum of complex financial products to both middle-market and high-net-worth customers through a variety of distribution channels.
London: Fitch Ratings said French mutual insurance companies will continue to lose market share as rising regulatory costs threaten their ability to compete with traditional insurers and bancassurers.
Traditional insurers are targeting health and protection insurance as strategic areas for growth, while bancassurers are stepping up competition in the property and casualty insurance market.
London/Paris: French mutual insurance companies will continue to lose market share as rising regulatory costs threaten their ability to compete with traditional insurers and bancassurers, Fitch Ratings says.
We expect mutual insurers (and traditional insurers) to target bancassurers' customers following the introduction of new rules in January 2018 allowing borrowers to change their creditor insurance provider on any policy anniversary.
A court decision to ban designation clauses, which could effectively grant a single pension benefit insurer a monopoly over group protection business in certain industries, will help open the market to traditional insurance companies, mutual insurers and bancassurers. The credit profiles of those that are able to take advantage could benefit, but competition will be fierce.