Bancassurance Products

Abstract

The aim of this chapter is to analyze the main features of bancassurance products and their evolution over time. Generally, bancassurer products have a low insurance content if they belong to the life business, or a high degree of standardization, if they belong to the non-life business. These characteristics derive from the skills and knowledge of the banks which approach the insurance business. In fact, the bancassurance products were initially born as banking-related products and bank branches have gradually become one of the most important distribution channels of insurance policies. Bancassurers are able to combine the information about the financial behaviour of their clients with their insurance needs. In the first step of the bancassurance development process, bancassurers focused on life products because of their high saving content and because of the many similarities and complementaries these had with the asset management activity. The share of the written premium addressed to cover the mortality/longevity risk was equal to zero or limited to a small amount and the claim management process was quite simple. In the second step of the development process, bancassurers have also approached the non-life business with some standardized products or with the help of reinsurers. The variables of customization of non-life products are few (above all, the age of the policyholder) and the claim management process is in outsourcing.