Bancassurance

What is cancellation?
Bancassurance is an agreement between a bank and an insurance company that allows an insurance company to sell its products on behalf of the customer. These associations can benefit both companies. Banks make more money selling insurance products, and insurance companies are expanding their customer base without increasing their sales force or paying agents and brokers.


IMPORTANT ISSUES
Bankassurance is a partnership between a bank and an insurance company.
The insurance company benefits because they can reach the bank's customer base to sell their products. They earn extra money without building sellers or commercial payers.
The bank benefits by improving customer satisfaction. Many services are provided under one roof. In addition, the bank earns a certain amount of money from the sale of insurance products.

Cancellation Defined
The Glass-Steagall Act of 1933 prohibited US banks from conducting business with companies that provide other types of financial services. In 1999, much of the Glass-Steagall Act was repealed to allow bancassurance, also known as Allfinanz. However, it is not yet fully accepted as the practice of most insurance policies.


Bankassurance is controversial, and opponents believe it gives banks more power in the financial industry; some countries prohibit fraud, but the service was legalized in the United States when the Glass Steagall law was repealed.
Cancellation agreements are widespread in Europe, where the practice has a long history. European banks such as Crédit Agricole (France), ABN AMRO (Netherlands), BNP Paribas (France) and ING (Netherlands) dominate the global financial market. For example, in December 2015, Allianz and the National Bank of the Philippines (GNP) formed a joint venture where Allianz gained access to more than 660 retail bank branches and 4 million Filipino customers. Allianz SE is an insurance and asset management company based in Munich, Germany, with a market capitalization of $ 93.8 billion as of March 12, 2019.

Bancassurance growth in Europe and the world
The global Bankassurance market is booming. Asia-Pacific is the most important region in the world. Europe plays an important role in the growing global bancassurance market due to the greater investment of European banks. The United States is expected to show the highest annual inflation rate (CAGR) from 2018 to 2025 due to the portfolio of high-end banking products and the increase in Internet use in the region. Latin America and Africa are expected to show significant growth in the coming years.

According to the analysis, size, exchange, growth, trends and forecast of the global bancassurance market industry for 2019-2025, the bancassurance market has an approximate value of $ 1.103 billion in 2017 and it is expected that grow at an average -6.4% from 2018 to 2018 2025.

Advantages and disadvantages of bancassurance
Bancassurance offers many benefits to customers, one of which is convenience. The bank is a store to meet all financial needs. For banks and insurance companies, the bank guarantee promotes the division of capital and provides greater value and profits to both players.

These factors contribute to the growth of bancassurance worldwide. The restrictive characteristics of the global bancassurance market are the risks associated with the banks' reputation and the successive rules and regulations that apply in other regions.

Cancellations remain prohibited in other countries. However, the global trend is facing the liberalization of banking regulations and the opening of national markets to foreign companies.