1995
DOI: 10.1108/02652329510075427
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The profitability of bancassurance for European banks

Abstract: Develops principles for banks that want to evaluate the distribution of life insurance as well as non‐life insurance products and identifies key factors for profitability. Analyses the costs of training personnel, the costs of computers and communication, the fixed and variable sales costs, and the costs of administration including customer service. These costs have to be covered by direct benefits in terms of commissions and indirect benefits in terms of more faithful bank customers. Then estimates the profit… Show more

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Cited by 42 publications
(39 citation statements)
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“…Taiwan. 6 McKillop et al (1996). 7 Bergendahl (1995). Although this deregulation effectively removed the restrictions on combining banking services with insurance, banks in Taiwan are still prohibited from distributing insurance products directly.…”
Section: Introductionmentioning
confidence: 99%
“…Taiwan. 6 McKillop et al (1996). 7 Bergendahl (1995). Although this deregulation effectively removed the restrictions on combining banking services with insurance, banks in Taiwan are still prohibited from distributing insurance products directly.…”
Section: Introductionmentioning
confidence: 99%
“…The traditional approach for IPA developed by Martilla and James [10] has been improved into various forms in applications [11,12]. By being applied in hotel sector, the IPA produced a graphical display on separate measurement of performance versus importance on each factor or Provide lower premium insurance to bank distribution [4] Small subsidiary set-up cost [4] Service quality […”
Section: Importance-performance Analysismentioning
confidence: 99%
“…Sales promotion [4] Marketing partnership [1] Joint ventures [1,5,6] Creation of integrated groups [1] Strategy of Bank and Insurers Consolidation attribute. Based on the picture from the IPA, the strategy makers can identify the marketing or operational needs for an organization [13].…”
Section: ] Bankmentioning
confidence: 99%
“…These include reducing customer acquisition and service costs (Harrison and Ansell, 2002;Kamakura et al, 2003), increasing the share of customers' wallets (Ryan, 2001;Harrison and Ansell, 2002), improving customer loyalty and retention (Kamakura et al, 1991(Kamakura et al, , 2003Benoist, 2002), protecting market share (Kamakura et al, 2003;Lau et al, 2004), balancing demand fluctuations and increasing profitability (Bergendahl, 1995;Kamakura et al, 2003), and attaining economies of scale and scope (Bergendahl, 1995;Voutilainen, 2006). Aiming to realize these benefits, the majority of today's financial players have been claimed to practice one or another type of cross-selling (Ryan, 2001;Van den Berghe and Verweire, 2001;Benoist, 2002;Ngobo, 2004), more often across the financial service sectors.…”
Section: Introductionmentioning
confidence: 98%
“…At the same time, changes in customer behaviour such as increasing knowledge of financial services and demand for more value-added services (Ryan, 2001;Voutilainen, 2005) have forced service providers to move from a traditional productcentric approach towards a more holistic, customer-oriented (Hislop et al, 2002;Kamakura et al, 2003) and solutions-based (Van den Berghe and Verweire, 2001;Lau et al, 2004) approach. Denoting terms such as 'bancassurance', that is, the sales of insurance products by banks (Bergendahl, 1995), and 'assurfinance', that is, the sales of financial products by insurance companies (Benoist, 2002;Van den Berghe and Verweire, 2001), the once traditional financial institutions are moving towards provision of 'comprehensive financial services', that is, offering their customers a seamless service of banking, investment and insurance (Van den Berghe and Verweire, 2001;Hislop et al, 2002).…”
Section: Introductionmentioning
confidence: 98%