Corporate Governance in Bancassurance Context: An In-Depth Analysis of external Control Mechanisms

Abstract

Governance stands as a multifaceted area of interest, attracting attention in both political and academic realms on a global scale. Its significance, particularly in economics and management, has been increasingly emphasized due to a series of scandals that have resonated across various contexts, often highlighting common issues associated with power struggles and conflicting interests within organizations. The quest for effective governance demands the implementation of multiple control mechanisms to address and prevent power-related challenges within organizations. In this article, we focus on the governance of companies operating in the context of bancassurance. Indeed, bancassurance companies are of major importance to any economy, which explains the scope of our research that explores the rules and governance mechanisms governing this sector worldwide, as well as their manifestation in our research context. A comprehensive review of the Basel Committee on Banking Supervision forms an integral part of this discussion. This committee plays a central role in setting global banking standards and its governance structure. Notably, the article highlights Bank Al-Maghrib's adoption of Basel III provisions in the Moroccan context and underscores the significant role played by the Credit Institutions Rating Assistance System. Furthermore, the article delves into the pivotal role of the Insurance and Social Welfare Supervisory Authority within the insurance sector, emphasizing the intrinsic connection between solvency and governance. It explores the historical importance of Solvency I and its evolution towards Solvency II, with a focus on the impact of this directive on the European insurance industry. Finally, the paper thoroughly examines the strategic application of the risk-based solvency approach in Moroccan bancassurance, stressing its contribution to enhancing financial robustness and its tailored assessment within the national context.