Economic essence of cooperation with banks and insurance companies

Abstract

The article substantiates the concept of «bancassurance» as a process of interaction between banks and insurance companies. The effect of this cooperation is explored - the sale of insurance policies together with the products offered by banks. Different interpretations of bancassurance in modern conditions are considered. The internal and external factors influencing the development of banking and insurance relations are determined. The advantages and disadvantages of bank insurance for both entities of this activity are highlighted. It was investigated that the purpose of functioning of banks and insurance companies is to generate profit. An important factor in the formation of banking and insurance cooperation – new distribution channels of insurance companies - was identified. The state of the market of bancassurance in the developed countries of Europe is analyzed. The deep integration of insurance companies into the banking sector, as well as the fact that, unlike in Ukraine, foreign banks receive a significant part of their profits from the sale of insurance products. Graphically, the distribution of insurance products through banking institutions in Europe is illustrated. Exemplary offers of bank-insurance cooperation on the Polish market are selected, where almost every bank also offers insurance along with accepting deposits and providing loans. The specifics of bancassurance development in Ukraine are determined. The leading companies on the Ukrainian market of bank insurance are noted. The reasons for the lack of development of bancassurance in Ukraine include: low solvency and distrust of the population of the country to the banking sector; the global financial and economic crisis, which has a significant impact on the overall economic situation in Ukraine; excessive credit risks of the bank; excessive requirements for the accreditation of insurers by banking institutions. The directions of further development of bancassurance in Ukraine are offered.