On Institutional Change Of Bancassurance

Bancassurance has been developing rapidly all over the world since 1980s. A lotof large financial groups .that affects worldwide have been developing bancassuranceas one of the important ways of financial mixed management and achieved greatsuccess. Looking over the developing process of the bancassurance from thebeginning that the two parties signed distribution agreement to set up joint venture, tomerge and acquisition, to establish financial holding group, it is found that degree ofintegration of bancassurance is higher and higher.At present the theories of economics study mainly from the aspects ofeconomies of scope, economies of scale, transaction cost theory, theory ofinformation asymmetry, theory of system transformation and so on to explainbancassurance separately. This paper tries to set up a uniform systematical structureand put the academic illustrations of the bancassurance as branches of the structure toform a comprehensive theory basis. After summing-up, it takes the analyses ofreasons of the system transformation under the analyzing frame of the variance ofsystem of economics, which is a new system, as the point. This paper believes thatbancassurance itself embodies an institutional arrangement innovation in theprocedure of development from. "Divided Profession Management" to "MixedManagement", and the development of each period reflects the changing process ofsupplying and demanding in financial system from imbalance to balance, and theessential driving force is undoubtedly the economical factor—acquiring "externalprofits". Economies of scale, economies of scope, lowering the transaction cost, riskdiversification and transfer, and synergy affect all of which are the origin the "external profit", that is, the internal reason of institutional change in thebancassurance. In this way the original separated explanations of economics comeinto being a complete theory.The first chapter introduces the definition, origin and developmental processbriefly. The second chapter tells the general theoretical structure of the analyzing theinstitutional change. On the basis of exploring the forms of the institutional change ofbancassurance, the third chapter puts the emphasis on the analyzing of causes andillustrates theoretically that the transformation is a spontaneous process under theeffect of the economical driving force. The fourth chapter verifies the feasibility of thebancassurance in practice with demonstration and case analyzing. The fifth chaptersummarizes the whole paper.