by darnardo1 » Mon Jun 15, 2009 01:58 am
I'd like to satrt a discussion on bancassurance...
In the US bancassurance only accounts for 2% of the life insurance market but in Europe it averages 30% with wide variances per country...
In the varying bancassurance models, the joint venture type of ownership...Do the banks also underwrite the insurance along with the insurer? WHat are the specifics of this kind of ownership?
In the US bancassurance only accounts for 2% of the life insurance market but in Europe it averages 30% with wide variances per country...
In the varying bancassurance models, the joint venture type of ownership...Do the banks also underwrite the insurance along with the insurer? WHat are the specifics of this kind of ownership?
Posted: Thu Jun 18, 2009 12:36 am Post Subject:
I don't know the ins and outs of insurance underwriting. But if a clients who says he has a clean bill of health and his last major credit card purchase was a MRI scan a week before he applies for life insurance, I assume it'd be hard to ignore...
I don't know any bancassurers personally so all I have is theory but as the proverb says "There is no knowledge that is not power"
Posted: Thu Jun 18, 2009 05:26 am Post Subject:
But if a clients who says he has a clean bill of health and his last major credit card purchase was a MRI scan a week before he applies for life insurance, I assume it'd be hard to ignore
Sure it'd be hard to ignore. But credit report isn't the only document based on which the insurer would write the policy. They would pull a report from Medical Information Bureau to see how healthy you are. And, also may require you to undergo health check-ups before accepting your business.
Posted: Thu Jun 18, 2009 08:08 am Post Subject:
Good point jeorge
But what about other (non credit) information that the banks have. Banks know so much about a person; travel habits, work, family size even how many times you eat at greasy burger or frequent cheers.
Well this one has had mbership at the local health club for the past several years...sign him up!
theoretically the banks should be in a better position to evaluate risk. Where they need to improve on is how to sell life insurance as things often seem to be purchased at banks and not so much sold.
Posted: Thu Jun 18, 2009 09:04 am Post Subject:
Well, a life insurer would ask the similar questions to the applicant prior to issuing the policy. An insurer would ask questions about-
* The nature of your job
* Height & weight
* Medical history
* Hobbies/adventure sports
* Smoking & drinking habit
* Family history
* Number of dependents
I don't say that the insurance companies attimes don't write bad businesses but at the same time I'm not pretty convinced that the bank would get a upper hand in the business of insurance.
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