Bancassurance: an insurance concept from a Irish perspective
Journal of Financial Regulation and Compliance
ISSN: 1358-1988
Article publication date: 11 November 2013
Abstract
Purpose
The purpose of this paper is to chart the development of bancassurance as a method of selling insurance and how it fits within the regulatory environment in Ireland.
Design/methodology/approach
General review of the leading financial institutions retailing insurance in Ireland and their respective processes in retail distribution.
Findings
Unlike in Europe where bancassurance involves the bank creating insurance products, in Ireland many banks engage insurers to create product to be sold via banking network, call centre or online. Whitelabeling insurance products allow the bank and insurer to enter or exit the market. In developing a bancassurance product, fundamentals need to be in place for success. The regulatory environment also does not favour banks creating insurance products; hence, this method is suited to the Irish market based on market size and existing distribution channels.
Research limitations/implications
Based on a general review of the market, past and present, it does not take into account future developments of the banking sector which is subject to change post the EU banking crisis.
Practical implications
The paper establishes the current trend of banks entering the insurance market in Ireland.
Originality/value
Based on observation, general literature review and the current regulatory requirements to retail insurance in Ireland, the paper offers a perspective of market entry for a bank to sell insurance.
Keywords
Citation
Brophy, R. (2013), "Bancassurance: an insurance concept from a Irish perspective", Journal of Financial Regulation and Compliance, Vol. 21 No. 4, pp. 319-333. https://doi.org/10.1108/JFRC-12-2012-0052
Publisher
:Emerald Group Publishing Limited
Copyright © 2013, Emerald Group Publishing Limited