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Cross Strait Bancassurance Business Model

Posted on:2011-04-17Degree:DoctorType:Dissertation
Country:ChinaCandidate:J C ChenFull Text:PDF
GTID:1119330332472560Subject:Insurance
Abstract/Summary:PDF Full Text Request
The term "Bankassurance"describes the trendy model of cross-selling cooperation among banking, insurance and security industries. Bankassurance model has been mostly adapted at enhancing services and sales volume in Europe. The change was rooted in the de regulation of banking and financial industries in the 80's. Statistics shown banks in Europe realized 20-60% of its income based on insurance sold. And, the most notably, France showed 70% of its Bankassurance income comes from insurance sales. The bankassurance model expands product selections for the clients at the base and allows aggressively cross-selling at the front line.Although they were supervised in separated rules and regulations, the supervision and regulation bodies of China and its counter parts across the Strait, Taiwan, towards financial institution are equally cautions and conservative. Bankassurance model is at its beginning stage. In Taiwan, the moves have been bold and daring at embracing bankassurance idea since the major deregulation and reform were implemented in 2003. Based on WTO principle, China eventually has to face challenges that come with heavy capitals and loads of experiences. Cooperation between China and Taiwan on Bankassurance based on ECFA and MOU accords should not only mutually beneficial but also shorten the learning curve, and accelerate at obtaining market shares. The research emphasizes at how to reach a win-win situation among bank, insurance and consumers.The study would be based on the banking and insurance developments across the Strait in recent years and international experiences in review. The research is also like to produce a model for China to reference at its future development.In Chapter 1, the research starts with focus on back ground introduction. It should cover the meaning of bankassurance, products available, and pros and cons of the integration.In Chapter 2, the research would provide a historic review on international progress on bankassurance.In Chapter 3, the research covers issues on the recent progress on Bankassurance in China and Taiwan. It explores the weaknesses and deficiencies when the market faces rapid expansion, forced changes and weak economy. The dwindling profit in recent years may be rooted at the lack of expertise, regulation, and product restrictions.In Chapter 4, the research states a Bankassurance model that is suitable to the current situation between China and Taiwan. The model satisfies both supervision bodies across the Strait. In the process at developing such model, the research added elements from culture difference, product needs, supervisions and channel managements to the consideration. And the research finalizes the Chapter with procedures and stage of implementation.In Chapter 5, the research would like to discuss the risk management aspects of the Bankassurance operation. The experiences are derived from various foreign operations under Bankassurance umbrella. The discussion is also expanding the beyond the current operation model suggested in the previous Chapter.In Chapter 6, the research is at projecting the needs of the clients. From trend of deregulation, internationalization, conglomeration and vastly available electronic banking, the customers would push the regulator, banking, and other financial industries to consider beyond sales and profit.Finally, the research would discuss the risks when implementing cross Strait Bankassurance business has to face. The research concluded with recommendations for regulator to consider. In which, although premature at the time of publication, adoption from experiences from advanced developed countries is considered and recommended.
Keywords/Search Tags:bancassurance, mixes industry the management, product innovation, risk management, financial holding company
PDF Full Text Request
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