Traditional Business Bancassurance Business

It is an agreement between a bank and an insurance company, where the bank sells insurance instead of the insurance company, the insurance company pays the bank a corresponding labor fee, and the insurance company's business is also handled in this bank! For example: Agricultural Bank of China and Ping An, Everbright and Everbright, etc.

Driving factors for the development of Bancassurance

The development of Bancassurance has its own specific background, which mainly includes the following factors:

(1) Demand factors

From the aspect of demand, the consumer's purchasing behavior has been changing, more consumers like to save time and diversify the "supermarket shopping". More consumers prefer time-saving and diversified "supermarket shopping". Specifically in the financial industry, with the popularity of the concept of "one-stopshopping" (onestopshopping), people increasingly want to go to a financial department store or a financial supermarket to satisfy their needs for savings, insurance, investment and other financial services without having to go to the bank, insurance company and securities company to buy separately. .

(2) Supply-side factors

Demand-side factors alone are not enough to promote the development of Bancassurance and insurance intermediation, and supply-side factors are an important driving force. Here are two perspectives from banks and insurance companies to see why Bancassurance Financing is popular.

From the bank's point of view. First, in order to meet customer demand for "financial department stores" and "financial supermarkets", banks hope to provide customers with more comprehensive financial services through the bank-insurance intermediation, in order to retain customers. Secondly, BIC can improve the utilization efficiency of the bank's existing resources. Banks can intervene in the insurance business without adding a lot of new premises, facilities and personnel, and the output rate per unit of resources can be improved. Finally, the pressure of competition forces banks to look for new business growth points.

From the perspective of insurance companies. First of all, insurance companies need a new sales network in addition to the traditional sales network based on individual marketing. If the sales network already established by banks can be effectively utilized, insurance sales costs can be greatly reduced and sales efficiency can be improved.

(C) Financial liberalization and technological progress

The above analysis illustrates the necessity of bank-insurance financing, but bank-insurance financing needs two more external conditions to become possible. These two conditions are financial liberalization and technological progress.

In the context of financial liberalization, financial regulation has been gradually relaxed, and the traditional boundaries between banking, insurance and securities are becoming increasingly blurred, which provides legal possibilities for the development of bancassurance financing. Financial liberalization is most evident in Europe, where the development of bancassurance financing is also the fastest.

Extended reading: insurance how to buy, which is good, hand to teach you to avoid the insurance of these "pits"