Bancassurance

Banking markets have experienced a general trend towards conglomeration in recent years which has been facilitated by the deregulation of banks' activities. A particular feature of financial conglomeration has been the diversification of banks into insurance activities, and especially life insurance. This book provides a comprehensive analysis of the concept and market characteristics of the bancassurance phenomenon. It also evaluates the impact of banking risks associated with diversification into insurance business. "Banking markets have experienced a general trend towards conglomeration in recent years which has been facilitated by the deregulation of banks' activities. A particular feature of financial conglomeration has been the diversification of banks into insurance (especially life) activities - a phenomenon known as bancassurance." "Many European banks have adopted bancassurance strategies but there has been little empirical evidence investigating the implications of this strategy for bank performance. This text aims to redress this imbalance by providing a comprehensive analysis of the development and market characteristics of the bancassurance phenomenon and empirical evidence on the risk/return effects of bank diversification into life assurance business."--BOOK JACKET Front Matter....Pages i-xviii Introduction....Pages 1-3 Evolution of the Bancassurance Concept....Pages 4-43 Bancassurance in the United Kingdom....Pages 44-71 Bancassurance in Europe....Pages 72-96 The Theory of Corporate Diversification....Pages 97-137 Literature Review: Bank Diversification and Risk....Pages 138-186 The Risk Effects of Bank Diversification into Bancassurance....Pages 187-220 Regulatory Issues....Pages 221-241 Conclusions....Pages 242-243 Back Matter....Pages 244-270