Research On Collaborative Development Of Banking And Insurance From Systems Perspective

Abstract:Banking and insurance are important composition of financial sector. There are similar and complementary characteristic in financial functions of the industry resources for banking and insurance. Thus, there are complex competition and cooperation between the both industries. The bancassurance which is consist of distribution of insurance product is the main content of cooperation between banking and insurance, but the cooperation can not effectively integrate resources of industries, and can not maximize the synergies of banking and insurance. With emergence of new regulation, the bancassurance shrivel sharply for the simple forms of cooperation. How to integrate effectively the industries resources of banking and insurance and promote the collaborative development is an issue that worthy of further study. The competition and cooperation between banking and insurance are the approach to integrate the resources of both industries, and generate the nonlinear function mechanism which is the basement of compound system. This paper studies the collaborative development of Chinese banking and insurance from perspective view, search the way to improve the efficiency of integrating the resources of banking and insurance and realize the collaborative development of both industries.To achieve the goals, this article researches the issue from following aspects:Firstly, construct the theoretical framework of collaborative development of the banking and insurance by the system theory. Based on the economic function of the compound system, we discus the mechanism of function between the banking and insurance. We analyze comprehensively the characteristic of self-organization by the self-organization theory. From the connotation, characteristic, goal, content, framework, and economic effect, the mechanism of collaborative development of the compound system of banking and insurance.The effect between banking and insurance is intrinsic motivation of the co-evolution of compound system. In order to proof the existence of the effects and status quo, we carry out the empirical analyze the short term effect and dynamic of it by the test based on bootstrap and sliding window. Then, we build the economic growth model with banking and insurance, and certify that the whether there are substitute and complementary between banking and insurance by the economic growth model. The conclusions of empirical analysis show there is short term granger causality between banking and insurance in China, and there are different effect of accumulating effect between life insurance or property insurance and banking, and the effect change over time, And also, it is show that there is regional differences in the substitute and complementary between life insurance or property insurance.The compound system of banking and insurance is complex system coupled by the banking system and insurance system. In order to investigate situation of the system coupling and joint, we measure and analyze the degree of healthy coupling and mutual promotion by the system theory. The results show that the degree of coupling between banking subsystem and insurance subsystem is high, but the degree of healthy coupling and joint are low.The co-evolution is the way of collaborative development of banking and insurance. The mechanism of co-evolution of the compound system of banking and insurance is analyzed by the system theory, and construct the co-evolution model for banking and insurance to depict the rule of co-evolution for the compound system of banking, insurance and environment of development. We analyze the stability of the compound system model built. The model has been estimated by using the actual data of banking and insurance and by using algorithm based on Particle Swarm dynamic neighbors and local search, and then the model has been used to discuss the situation of co-evolution of the compound system. And the fractional co-evolution model of banking and insurance has been constructed to predict the degree of order. The results show that the degree of order for banking subsystem and insurance subsystem improve but the rate of it is low; there are substitute between two subsystems, but still stay the situation of co-evolution. What’s more, the predictions show that the order of degree for banking subsystem and environment subsystem increase, but decrease for insurance subsystem.The co-evolution development of banking and insurance is cyclical processes that consist of assessing, adjusting, and assessing again, adjusting again. We discuss the connotation of assessing the co-evolution development of banking and insurance from the aim and content of the assessment. We build the assessment method of the co-evolution development of banking and insurance, and assess the performance of the co-evolution development of banking and insurance in China. The results provide the foundation for improving and choosing path of the co-evolution development of banking and insurance. The results show most of province system of banking and insurance are not effective in joint and development.Finally, we propose to improve the co-evolution development of banking and insurance by strengthening the function of subjects in the compound system of banking and insurance, promote co-evolution development of the compound system to be ordering, optimize organizational mode of co-evolution development of the compound system and improve the environment of co-evolution development of the compound system. The ways to strengthen the function of subjects in the compound system of banking and insurance include that develop the innovations of compound financial products of credit and insurance, build reasonable and effective mechanism for the distribution of benefits, improve information sharing mechanism between industrial subjects, strengthen capital cooperation among industry. The ways to promote co-evolution development of the compound system to be ordering include that locate direction of collaborative innovation for products, standardize the market order, and improve the awareness of consumer for bancassurance financial products. The ways to optimize organizational mode of co-evolution development of the compound system include that build the strategic alliance model based on product innovation and a clear organizational structure of industrial development. What’s more, it suggests that improve the external environment of system from tax, regulatory, and legal.