Bancassurance: The Lessons of Global Experience in Banking and Insurance Collaboration
Steven I Davis
BANCASSURANCE: THE LESSONS OF GLOBAL EXPERIENCE IN BANKING AND INSURANCE COLLABORATION
Steven I Davis has spent his career in the banking and financial services sector as a senior executive, strategy consultant, author, analyst and teacher. He is a graduate (magna cum laude) of Amherst College and of the Harvard Business School. His 20-year career in international banking began at JPMorgan, where he managed a Paris-based research and M&A unit. For Bankers Trust Company, he ran a venture capital subsidiary in New York, and later the bank’s European businesses from a London headquarters. Subsequently he set up and managed for six years the Londonbased merchant banking subsidiary of First International Bancshares of Dallas, Texas. Since establishing Davis International Banking Consultants (DIBC) in 1980, he has managed several hundred strategy assignments for commercial and investment banks, global fund managers, insurers and other financial institutions. In 1993, he headed a DIBC team which advised the Norwegian Ministry of Finance on the restructuring of the country’s banking sector during the Nordic banking crisis. In addition, he and his colleagues have prepared over 60 research reports on the financial sector for publication by investment banks and other clients. Steven Davis is also the author of seven books on the banking sector (published by Macmillan in London). They include Excellence in Banking, Managing Change in the Excellent Banks, Leadership in Financial Services, Bank Mergers: Lessons for the Future, Investment Banking: Addressing the Management Issues and, most recently, Excellence in Banking – Revisited.
This report contains a significant amount of historical financial information, and calculating currency conversions for every amount would make the publication unwieldy, while to impose an ‘average’ conversion rate could convey an incorrect impression in some cases. Historical conversions for all the currencies mentioned in this report can be found by logging on to OANDA, The Currency Site: www.oanda.com/convert/fxhistory
A word about Asia-Pacific...
We have used the term ‘Asia-Pacific’ to describe the countries in the Asian land mass as well as other countries in the Pacific Ocean such as Australia, Korea and Japan. Our sources, however, sometimes use the term ‘Asia’ to refer to what appears to be roughly the same area, and when using their data we employ the same term. Our intent is to cast our net as widely as possible in the region by using the term ‘Asia-Pacific’ without attempting to make an academic distinction. © 2007 VRL KnowledgeBank Ltd No part of this report may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright holder. This report is designed to provide accurate information on the general subject matter covered. This report is provided with the understanding that the author and publisher shall have no liability for any errors, inaccuracies or omissions of this report and, by this report, the author and publisher are not engaged in rendering consulting advice or other professional services to the recipient with regard to any specific matter. In the event that consulting or other expert assistance is required with regard to any specific matter, the services of qualified professionals should be sought. Print production: Patersons (www.patersons.com) Product code: 7RB First published: London, June 2007 ISBN: 1-905457-63-4
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Bibliography: Ahmad, Titien: ‘Bancassurance – still a long way to go’, Retail Banker International, November 2005 Ahmad, Titien: ‘The rise of the bank channel in Asia’, Financial Services Distribution, November 2005 Aston Associates: ‘Bank-owned agents fulfil the promise’, Retail Banker International, March 2006 Beitel, Patrick et al: ‘Explaining the M&A success in European bank mergers and acquisitions’, European Financial Management, 2003 Bo, Lars Jacob et al: ‘Assessing insurance deals’, McKinsey Quarterly, Number 2, 2003 Branchey, Alain: ‘European bancassurance markets: A differentiated world’, Fitch Ratings, 8 February 2006 Buckley, James: ‘Innovative banks dominate distribution’, Financial Services Distribution, November 2005 Campbell, Jim: ‘Banks keep gobbling up P&C agencies’, National Underwriter P&C, Vol. 110, Issue 5, p.20 Capgemini: World Insurance Report: Customer satisfaction is no guarantee of loyalty, New York, 2006 Celent Communications: Hype, hope and harsh realities in US bancassurance, New York, April 2004 Comité Europeéne d’assurance: European insurance in figures, Number 24, 2006 Datamonitor: Opportunities in European life bancassurance, London, 2003 Davis International Banking Consultants: Bank/insurance mergers outside Canada: The lessons for public policy, London, December 2003
BANCASSURANCE: THE LESSONS OF GLOBAL EXPERIENCE IN BANKING AND INSURANCE COLLABORATION Drury, Susan: Bancassurance in the 21st century, VRL KnowledgeBank, 2005 Financial Services Distribution: ‘European bancassurance no longer an easy win’, March 2004 Financial Services Distribution: ‘Banks going for gold in China’, April 2005 Financial Services Distribution: ‘Bancassurance taking distribution business, warns large UK adviser’, October 2005 Financial Services Distribution: ‘The evolving world of distribution’, October 2005 Financial Services Distribution: ‘BBVA looks to grow bancassurance share through new life product’, November 2005 Financial Services Distribution: ‘Growth ambitions from AXA’, November 2005 Financial Services Distribution: ‘The evolution of distribution in Europe: Bancassurance’, March 2006 Financial Services Distribution: ‘Foreign bancassurance deals make Aviva shine’, November 2006 Flur, Dorlisa et al: ‘Bancassurance: Could banks be a new channel to sell insurance?’, McKinsey Quarterly, Number 3. 1997 Fournier, Antoine: Analysing distribution trends in life insurance and pensions, Capgemini, September 2001 Frazer, Patrick: ‘Culture of mis-selling’, Retail Banker International, 2003 Frazer, Patrick: ‘PPI: The next mis-selling scandal’, Retail Banker International, December 2005 Juilliard, Marc-Philippe: ‘Bancassurance or not bancassurance?’, Fitch Ratings, 8 February 2006 Kehrer, Kenneth: ‘Banks making substantial progress in growing life sales’, National Underwriter Life and Health, Vol. 110, Issue 9, p.26 Kehrer, Kenneth: ‘Bank annuity sales at a crossroads’, ABA Banking Journal, Vol. 98, Issue 9, p.50 Kehrer, Kenneth: Bancassurance in the US, Presentation to Conferencia Latinoamericana di LIMRA International, New York, October 2006 Ledouble, A and E Dupont: ‘When French insurers want to be bankers’, Fitch Ratings, July 2006 Lepreux, Jean-Luc: ‘Bancassurance remains important strategy for many European banks’, Dominion Bond Rating Service, Issue 4, 29 June 2006 McKinsey & Co: The changing landscape for Canadian financial services, submission to the Canadian Government Task Force, 1998
BIBLIOGRAPHY Mercer Oliver Wyman: Sales success in European bancassurance, London, February 2006 Morgan Consulting: Different countries, different models (reported in Retail Banker International, 2003) Murry, Tom and Bill Keffer: Bank life insurance sales: Issues, challenges and opportunities, ABIA Annual Conference, New York, 13 October 2006 Power Corporation of Canada: Submission to Ministry of Finance on future structure of the Canadian financial services industry, Montreal, December 2003 Retail Banker International: ‘European bancassurers ponder after life’, August 2005 Reed, Richard: ‘Europe and bancassurance: A work in progress’, Cross Currents, Summer 2005 Salomon Brothers: European integration: Banks and insurers square off in distribution war, New York, 1990 Salomon Brothers: European insurance distribution: A battle for the customer, New York, 1992 Sigma: ‘Bancassurance developments in Asia – shifting to a higher gear’, Swiss Re, 2002 Sigma: ‘Exploiting the growth potential of emerging insurance markets – China and India in the spotlight’, Swiss Re, 2004 Stock, Howard J: ‘Covering all bases: some banks are integrating life insurance into their product plan but – it’s not easy’, Bank Investment Consultant, Vol. 14, Issue 3, p.18 Totaro, Leonardo: Threats and opportunities in European bancassurance, McKinsey & Co, presentation to European Bank Research, Milan, 2002 Wepler JM et al: ‘Banks in insurance: A five-year retrospective since the passage of GLB’, Bank Director Magazine, March 2004
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