The Influence of Bancassurance System on the Quality of the Insurance Services

Bancassurance system is one of the most dynamic channel of the distribution of insurance industry, although it appeared recently. Its main quality consists in the possibility of an intensive operation of the portfolio of clients, through a substantial improvement of financial services offer, with minimum administrative and implicitly financial effort. The diversity of bancassurance institutional models induce complex processes of buying or merging, starting with simple contractual relations, continuing with the products which create the object of distribution through this system.

The part of the bancassurance partnership on the quality of the distribution of insurance products shows both in satisfaction concrete institutional advantages of the two partners (bank and insurer) and in favorable bearings towards the consumer/customer. The level of turning to good account and putting into practice of the potential advantages depends on a series of factors like: the size of the partners, the applicable legislation, the level of the market development, the cultural factors, the institutional model on which is founded the partnership.
The systems according to Basel II and Solvency II rules and regulations offer new expectations of analysis concerning the management of the quality of the offered financial services through the bancassurance channel of the distribution having in view the control of the associated risks. Both the common characteristics of the two solvency conditions and the existing differences among them imply a cooperation of the relevant regulation institutions of the two financial market shares, with the object of eliminating those discrepancy which have no economical basis and cause a reduction of the efficiency and an unjustified growth of the costs for the analyzed model of distribution.