Studying the Bancassurance Phenomenon: A Two-Sided Analysis on the Relevant Case of Italy

  • Franco Fiordelisi
  • Ornella Ricci
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)


Most studies dealing with bancassurance provide readers with descriptive analysis by discussing economic rationales, advantages and drawbacks for all the institutions involved. In contrast, there are few studies providing an empirical assessment of the bancassurance business. More specifically, as outlined at the end of the previous chapter, there are no empirical analyses measuring bancassurance cost and profit efficiency gains from both the banking and the insurance perspectives. This chapter aims to fill this gap by answering the following three research questions: (1) Are banks engaged in the insurance business more cost and profit efficient than competitors who have specialised in traditional and investment banking? (2) Are bancassurance companies more cost and profit efficient than independent companies operating in the life business? (3) Which model of bancassurance performs best?


Cost Efficiency Stochastic Frontier Insurance Industry Bank Branch Profit Efficiency 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Altunbas, Y., H. Ming, P. Molyneux and R. Seth (2000) ‘Efficiency and Risk in Japanese Banking’, Journal of Banking and Finance, XXIV, 10, 1605–28.CrossRefGoogle Scholar
  2. ANIA. Fact- pack Mercato Vita
  3. Cavallo, L. and S. Rossi (2002), ‘Do Environmental Variables Affect the Performance and Technical Efficiency of the European Banking Systems? A Parametric Analysis Using the Stochastic Frontier Approach’, The European Journal of Finance, VIII, 1, 123–46.CrossRefGoogle Scholar
  4. Fiordelisi, F. and O. Ricci (2011) ‘Bancassurance efficiency gains: evidence from the Italian banking and insurance industries’, European Journal of Finance, XVII, 9–10, 789–810.Google Scholar
  5. Fenn, P., D. Vencappa, S. Diacon, P. Klumpes and C. O’Brien (2008) ‘Market Structure and the Efficiency of European Insurance Companies: A Stochastic Frontier Analysis’, Journal of Banking and Finance, XXXII, 1, 86–100.CrossRefGoogle Scholar
  6. Girardone, C., E. Gardener and P. Molyneux (2004) Analysing the Determinants of Bank Efficiency: The Case of Italian Banks. Applied Economics, XXXVI, 3, 215–27.CrossRefGoogle Scholar
  7. Hwang, T. and S. Gao (2005) ‘An Empirical Study of Cost Efficiency in the Irish Life Insurance Industry’, International Journal of Accounting, Auditing and Performance Evaluation, 2, 3, 264–80.CrossRefGoogle Scholar
  8. Mester, L. (1993) ‘Efficiency of Banks in the Third Federal Reserve District’, Wharton School Center for Financial Institutions, University of Pennsylvania, Working Paper no. 94–13.Google Scholar
  9. Okeahalam, C. (2008) ‘Does Bancassurance Reduce the Price of Financial Service Products?’, Journal of Financial Services Research, 33, 3, 147–62.CrossRefGoogle Scholar
  10. Rasmusen, E. (1988) ‘Mutual Banks and Stock Banks’, Journal of Law and Economics, XXXI, 2, 395–421.CrossRefGoogle Scholar
  11. Rogers, K.E. (1998) ‘Nontraditional Activities and the Efficiency of US Commercial Banks’, Journal of Banking & Finance, XXII, 4, 467–82.CrossRefGoogle Scholar
  12. Vander Vennet, R. (2002) ‘Cost and Profit Efficiency of Financial Conglomerates and Universal Banks in Europe’, Journal of Money, Credit and Banking, XXXIV, 1, 254–82.CrossRefGoogle Scholar
  13. Weill, L. (2004) ‘Measuring Cost Efficiency in European Banking: A Comparison of Frontier Techniques’, Journal of Productivity Analysis, XXI, 2, 133–52.CrossRefGoogle Scholar
  14. Worthington, A. (1998) ‘Efficiency in Australian Building Societies: An Econometric Cost Function Approach’, Applied Financial Economics, VIII, 5, 459–67.CrossRefGoogle Scholar
  15. Yildirim, H.S. and G.C. Philippatos (2007) ‘Efficiency of Banks: Recent Evidence from the Transition Economies of Europe, 1993–2000’, The European Journal of Finance, XIII, 2, 123–43.CrossRefGoogle Scholar

Copyright information

© Franco Fiordelisi and Ornella Ricci 2012

Authors and Affiliations

  • Franco Fiordelisi
  • Ornella Ricci

There are no affiliations available

Personalised recommendations