The Study On Stakeholders In Bancassurance

As a kind of system arrangement, bancassurance have appeared under the background of financial services integration since 1970. From the practice of bancassurance in Europe, we can see that the choice of a suitable bancassurance model depends on the particular cultural and regulatory environment of the host country. There is no single model that fits all. The mode of bancassurance in our country is insurers co-operate with banks by arranging for a distribution agreement. A bank signs a distribution agreement with an insurance company, under which the bank will act as a agent. In our country, banks take advantage of their huge sale net to get a bigger share of profits in bancassurance. The insurers have to raise the commission to cooperate with banks. This paper holds that the bancassurance mode in our country limits the degree of the cooperation between banks and insurers. And the regulatory environment is the reason that we adopt this kind of bancassurance mode. In this mode, banks and insurers focus all their attention to temporary benefits in stead of products and services.During the development of bancassurance, the benefits of multiple parties will be involved. The insurers, banks, regulators and consumers all want to maximize their utilities since they are rational. At presents, although banks and insurers have many conflicts in bancassurance in our country, they have utmost identical pursuits under the pressure of competition. The purpose of this paper is to find what kind of conflicts exist in the parties of bancassurance and bring forward some solutions to those conflicts through analyzing the stakeholders of bancassurance in our country.The first chapter of this paper is the analysis of the background of bancassurance. The analysis is mainly from two aspects: academically and practically. On the base of the analyzing and comparing the background of bancassurance between our country and Europe, we can find that three factor limits the development of bancassurance in our country: policy, regulation and the support from banks. The characteristic of thedevelopment of bancassurance in our country is different from Europe.The second chapter analyzes the parties of the bancassurance. At first the definition of stakeholders is provided. After that the paper points out that the stakeholders in bancassurance in our country are banks, insurers, regulators and consumers. Different parties pursue different benefits, and the paper holds that the relationship among the stakeholders appear to be three kinds: banks and insurers have utmost identical pursuits under the pressure of competition although there are two kinds of conflicts between them; regulators have to control the risk of bancassurance and protect the interests of consumers while encouraging to develop bancassurance; banks and insurers may take advantage of the separation between manufacturing creation and distribution of insurance product to infract clients' interests.The third chapter analyzes the factors influence the relationship among the parties in bancassurance. The paper holds that there are three types of factors influence the relationship: financial system and competition are the macroscopical factors, the bancassurance mode is the second one and the bancassurance contract is the microcosmic factor.The forth chapter is the analysis of benefits distribution of bancassurance in our country. Under the bancassurance mode in our country, insurers are in charge of manufacturing creation of insurance products, banks are the agent of insurers and the employees of banks are in charge of distribution of insurance product. Therefore the dual principal-agent relationship of insurers, banks and employees of banks come into being. In our country, banks come to be aware of reputation risk. Although raising commission can encourage the cooperation of banks, it is possible that banks' images would be tarnished if the insurance products they distributed ran into problems. So the paper holds that it is wrong to encourage the cooperation of banks only by commission. This" chapter analyzes the principal-agent relationship between banks and their employees, and obtain the optimum level of incentive. At last, some suggestions to the development of bancassurance in our country come along.