scholarly journals BUNDLING PRODUCT AS A COOPERATION AGREEMENT BETWEEN BANKS AND INSURANCE COMPANIES (BANCASURRANCE) IN RELATIONS WITH UNHEALTHY BUSINESS COMPETITION

2019 ◽  
Vol 3 (2) ◽  
pp. 70
Author(s):  
Rani Sri Agustina
Keyword(s):  
Insurance Companies ◽  
Marketing Activity ◽  
Cooperation Agreement ◽  
Product Integration ◽  
Banking Institutions

Banking institutions and insurance companies are two different finance institutions, both in terms of the type of business and in terms of the principles. The two of them undergo a cooperation (bancasurrance) through referential activities, distribution, and product integration. The cooperation activity of marketing integrated products is carried out by banks by offering and selling bundled products. Bundling is a marketing activity which is allowed, yet its implementation is almost the same as tying agreement, which is one of the prohibited agreements as it may lead to unhealthy business competition.

scholarly journals Conceptual Frameworks of the Development of Banking and Insurance Interaction in Modern Conditions

2021 ◽  
Vol 6 (1) ◽  
pp. 14-20
Author(s):  
Olena Bazilinska ◽  
Olena Panchenko
Keyword(s):  
Developed Countries ◽  
Insurance Companies ◽  
Conceptual Frameworks ◽  
Cooperation Agreement ◽  
Financial Conglomerates ◽  
Advantages And Disadvantages ◽  
Banking Institutions ◽  
Regulatory Bodies ◽  
Effective Use ◽  
Further Development

The purpose of the article is to reveal conceptual frameworks for further development of the banking and insurance interaction in order to ensure the growth of the value of banking and insurance business on account of the more effective use of their potentials and opportunities.It is noted in the article that banking and insurance interaction is manifested as the provision of insurance services through banking institutions – Banсassurance, the provision of banking services through insurance companies – Assurbanking, the provision of integrated services within financial conglomerates – Allfinanz.In the course of the research, it was determined that the banking channel for the sale of insurance services is the most efficient, and Bancassurance is a system of insurance services sale through the extensive banking network. The necessity and importance of the Bancassurance development, which is actively used in all developed countries, but differs in scale, methods, organizational forms and final financial results, is revealed. This is especially relevant in the context of reforming the regulatory bodies of the state financial market.Within the study, the advantages and disadvantages of Bancassurance and the prerequisites for its development are revealed. Particular attention is paid to the requirements to insurance companies in the process of the Bancassurance implementation. It is noted within the article that the interaction of banks and insurance companies can be carried out at different levels, from the level of the cooperation agreement, agency agreement, banking and insurance cooperation, to the level of the corporate control through the mechanism of mergers and acquisitions and financial supermarket.Within the study the conclusions are made that further development of banking and insurance interaction is conceptually aimed at increasing the role of commercial banks and the formation of “financial supermarkets”, in which each customer can meet the needs of bank services, financial consulting, and insurance. JEL classіfіcatіon: G21, G22

scholarly journals THE PROFITABILITY AND RISK EFFECTS OF RUSSIAN BANKING INSTITUTIONS’ INVOLVEMENT IN BANCASSURANCE: MERGER SIMULATION METHODOLOGY

Ekonomika ◽  
2018 ◽  
Vol 96 (3) ◽  
pp. 56-72
Author(s):  
Alexander V. Ekimov
Keyword(s):  
Commercial Banks ◽  
Balance Sheet ◽  
Insurance Companies ◽  
Simulation Methodology ◽  
Risk Effects ◽  
Banking Institutions ◽  
Accounting Principle ◽  
Merger Simulation

This paper presents the methodology taken to evaluate the potential profitability and risk effects of Russian banking institutions’ involvement in bancassurance. An original methodology is applied, which was developed by Boyd and Graham, to conduct merger simulations between commercial banks and insurance companies. The methodology is based on mergers between firms, like the accounting principle of consolidation by pooling. This principle entails summing up the balance-sheet indicators of previously independent firms to simulate a hypothetical merger.

scholarly journals CYBER CRIMES, FINANCIAL OFFENSES AND LEGALIZATION OF CRIMINAL INCOME IN THE CONDITIONS OF DIGITALIZATION OF UKRAINE'S ECONOMY

2021 ◽  
Author(s):  
Serhii Lyeonov ◽  
Serhii Mynenko ◽  
Tetiana Dotsenko
Keyword(s):  
Money Laundering ◽  
Information Technologies ◽  
Criminal Activity ◽  
Insurance Companies ◽  
Stock Exchanges ◽  
Threshold Values ◽  
Limit Values ◽  
Spline Models ◽  
Banking Institutions ◽  
The Impact

Digitalization of the economy is identified as one of the leading and priority fields of Ukraine's development. The complexity and development of new information technologies leads to the development of new methods and approaches to economic and financial activities. But despite the significant useful effects of digitalization, preferable conditions are also created for criminals. It is becoming easier to launder money, commit fraud with financial instruments and create new opportunities for cybercriminals. These processes lead to a detailed analysis of the determinants of criminal activity that has the greatest impact on the economy. The simulation identifies trends in the relationship of cybercrime, financial offenses and money laundering with generalized characteristics of fintech development, the number of reports of suspicious transactions submitted to the SCF and the level of development of key areas of financial activity: banks, insurance companies and stock exchanges. The study identified the direction and extent of the impact of digitalization, financial monitoring and activities of banking institutions, stock exchanges, insurance companies on the number of financial and cybercrimes and money laundering. MAR-spline models of interdependence between regressors and regressions were built. The adequacy of the constructed models is checked and confirmed. The advantage of MAR-spline models determines the possibility of calculating the limit values of factor features. The presence of the influence of factor features is traced either only until the achievement of certain threshold values or only when these threshold values are exceeded. Some factor characteristics had a multiplier effect on the resulting offenses. The practical application of the FinTech spline model of the interdependence of innovation and financial and cybercrime through financial institutions will benefit both financial intermediaries and users of the financial system, as well as government regulators and supervisors. Such a model can be useful and interesting to international organizations, investors and developers of regulatory standards, banking institutions, and other scientists conducting research in this area.

scholarly journals Necessity of restructuring insurance companies of Serbia

2004 ◽  
Vol 47 (1-2) ◽  
pp. 77-98 ◽  
Author(s):  
Sinisa Ostojic
Keyword(s):  
Political Parties ◽  
Central And Eastern Europe ◽  
Specific Problem ◽  
Developed Countries ◽  
Insurance Companies ◽  
The Political ◽  
Court Cases ◽  
Political Interests ◽  
Banking Institutions ◽  
National Bank

This item deals with a specific problem in the area of insurance market and insurance companies of Serbia, insurance is an important industry in developed countries and it becoming also important in the Central and Eastern Europe. Most people in these countries hold one of more types of insurance policies and the annual revenues of insurance companies exceed billion dollars and insurance companies are also a major employer. Although in Serbia insurance companies were not functioning as self solid (self basedc non-banking institutions, but they had been the instrument of the mobilization for the political parties during the pretransitional period of the savings throughout the obligatory forms of the insurance in political interests. The trust of the citizens of Serbia has been lost, as for bad experiences insurance money as well as for several years long court cases and gathered loses. Five years later the reform of the insurance companies started under the control of the National bank of Serbia. This task deals with the necessity of reforming the insurance companies in further to achieve their important in financial transaction.

scholarly journals Role Of Financial Intermediaries in Shadow Schemes: Risk-Based Approach

2021 ◽  
Vol 5 (3) ◽  
Author(s):  
Inna Tiutiunyk ◽  
Yuliia Humenna
Keyword(s):  
Insurance Contract ◽  
Insurance Companies ◽  
Financial Intermediaries ◽  
Monitoring And Control ◽  
Scientific Publications ◽  
Dual Nature ◽  
Banking Institutions ◽  
Financial Monitoring ◽  
And Control

The article is devoted to the study of the role of financial intermediaries in the shadow sector of the economy. The main purpose of the article is to analyze and systematize the work of scientists to assess the risk of shadow transactions with the participation of financial intermediaries. The results of the analysis of scientific publications on these issues show a wide variety of approaches to the study of these problems. Significant differences in the functioning of the financial, banking, insurance and investment markets of different countries have led to the need to develop and implement their own methodologies for assessing the risk of participation of financial intermediaries in shadow transactions at the state level. The paper summarizes the methodological approaches to assessing the risk of participation of financial intermediaries in shadow transactions in some countries. The methodological tools of the analysis are the methods of analysis and synthesis, generalization and comparative analysis. The object of the study are insurance companies, banking institutions and investment funds – participants in shadow schemes of income concealment. The article summarizes the most typical schemes of income concealment in terms of individual groups of financial intermediaries. The conclusion about the dual nature of banking institutions in these operations is made: 1) banking institutions as a ‘buffer’, and sometimes a direct participant on the way to the legalization of shadow income; 2) banking institutions as a subject of primary financial monitoring and control. Insurance operations that are subject to enhanced control by regulatory authorities include: pseudo-insurance operations; concluding an insurance contract with subsequent receipt of compensation for the occurrence of a fictitious insured event; concluding an insurance contract with an inflated insurance value of the object. Based on the analysis of transactions with signs of fictitiousness, which are realized on the investment market of Ukraine, the conclusion about the important role of technical securities in operations on shadowing of incomes and their further legalization is made. The results of the study can be useful for public financial monitoring and control bodies in terms of identifying transactions that could potentially pose a threat to the formal sector of the economy and developing measures to prevent them.

CURRENT STATE AND TRENDS IN THE DEVELOPMENT OF THE UKRAINIAN MARKET OF NON-BANK FINANCIAL SERVICES

2021 ◽  
Vol 1 (21(49)) ◽  
pp. 82-87
Author(s):  
Anna Novak ◽  
Yana Yukhimchuk
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
Financial Services ◽  
Banking Sector ◽  
Analytical Data ◽  
Insurance Companies ◽  
Adverse Conditions ◽  
Current State ◽  
Banking Institutions ◽  
Crisis Conditions

The article highlights the concept of the market of non-banking financial services in accordance with the requirements of Ukrainian legislation and identifies the main intermediaries operating in this market. The study contains analytical data on the number of non-bank financial institutions operating in Ukraine, as well as the volume of assets of such financial institutions. The authors also present an analysis of the main trends in the development of the non-banking financial services market. For comparison, the structure of the financial market is presented in the form of the ratio of the number of banking and non-banking institutions. The article provides an analytical overview of the number of private pension funds, financial companies, pawnshops, credit unions and insurance companies operating in Ukraine over the past three years. The structure and volume of financial services provided by insurance companies have been studied separately. The authors state that despite the existence of non-bank financial institutions, the banking sector still prevails. Moreover, financial companies predominate in terms of assets among representatives of non-bank financial institutions. Despite the coronary crisis during 2016-2020, the number of financial companies and other non-banking institutions, including pawnshops and insurance companies, grew steadily. Such trends are assessed positively, as it indicates the development of the financial market and its stability in adverse conditions. In Ukraine, the market of non-banking financial services is underdeveloped compared to other countries, but despite the mentality and transition in the formation of the non-banking financial sector, it has good prospects for development. However, despite the positive changes, ways to improve the performance of non-bank financial institutions in crisis conditions have been proposed.

An investigation into the mortality experienced by Pensioners of the Staffs of Banks and Insurance Companies, with a Note on the moratality experienced by Deferred Annuitants

1926 ◽  
Vol 57 (2) ◽  
pp. 129-159
Author(s):  
Cyril F. Warren
Keyword(s):  
Insurance Companies ◽  
Sympathetic Response ◽  
Clerical Work ◽  
Circular Letter ◽  
Banking Institutions ◽  
The Subject ◽  
Mortality Table ◽  
To Receive

When the subject of this paper was suggested to me, I realized that a big task would be involved, but the prospect of obtaining interesting results, combined with the fact that a mortality table applicable to such data would possibly prove of material assistance to Actuaries, emboldened me to proceed with the Investigation.The Managers of the five large Banking Institutions were approached, and after discussing the matter with them, I was able to proceed with the certain knowledge that the clerical work involved in supplying the data would be carried out by their respective staffs. A circular letter addressed to the Insurance Companies met with an equally sympathetic response, and I was thereby able to receive the cards with the majority of the work, as regards the tabulations of the data, already done. I should like to take this opportunity of tendering my sincere appreciation of the help so readily given by the officials of the Banks and Insurance Companies, not only for allowing me to make use of the data they had available, but also for their assistance in the clerical work involved in tabulation.

scholarly journals Analysis of integration processes of banking institutions and insurance companies in Ukraine

2021 ◽  
Vol 11 (3) ◽  
pp. 69-76
Author(s):  
R. Mamchur ◽  
◽  
Y. Tkachenko ◽  
Keyword(s):  
Insurance Companies ◽  
Financial Assets ◽  
Banking Services ◽  
Financial Products ◽  
Bank Deposits ◽  
Technology Improvement ◽  
Banking Institutions ◽  
Financial Income ◽  
The Cost ◽  
Additional Income

The processes of globalization, technology improvement and increasing competition put banks and insurance companies in need of increasing and changing the range of their services. The requirement to increase the level of profitability of their own activities stimulates the integration processes of banks and insurance companies and is one of the options to increase the supply of financial assets and increase demand for them. Was determined that when considering the integration processes between banks and insurance companies, it is important to study such areas of cooperation as the joint formation and use of financial resources, the creation of joint financial products and the conduct of joint marketing policy. During the analysis was proved, that bank deposits occupy the largest share among all other financial instruments and, as a result, provide insurers with the largest share of financial income, and investing in the capital of insurance companies remains a priority source of credit and investment resources for banks. The article proves that in Ukraine the most promising in the functioning of banks and insurance companies is a form of cooperation such as banсassurance, as the population has a greater demand for banking products and trusts more banks than insurance companies do. This concept of cooperation will lead to a synergistic effect, i.e. the demand for the purchase of one product (banking) will facilitate the purchase of another (insurance), which is the main purpose of bancassurance. The study identified the main benefits of cooperation between banks and insurance companies, including increased service because of a combination of banking and insurance products, providing non-traditional banking services, creating sources of additional income, reducing the cost of certain insurance services.

scholarly journals Insurance Companies as an Element of the Credit System

2021 ◽  
Vol 8 (523) ◽  
pp. 150-156
Author(s):  
O. M. Romashko ◽  
◽  
N. О. Krykhivska ◽  
L. M. Savchyn ◽  
◽  
...  
Keyword(s):  
Financial Market ◽  
Life Insurance ◽  
Financial Services ◽  
Foreign Capital ◽  
Insurance Companies ◽  
Credit System ◽  
Present Stage ◽  
Research Issues ◽  
Factors Influencing ◽  
Banking Institutions

The article is aimed at researching the main indicators of the activities of insurance companies in Ukraine and determining their role in the structure of credit system. Generalizing scientific works on the research issues of the functioning of non-bank financial and credit institutions as a whole and insurance companies in particular, the authors determine the need to study certain issues of development of insurance market actors at the present stage (namely, indicators of the activities of insurance companies) and define their place in the credit system. Analyzing the dynamics and structure of the assets of the credit system in the context of its components – the banking and parabanking system, the bank-centric model of the financial market is determined, because the main share in the assets of the credit system is occupied by the assets of banking institutions. It is determined that financial and insurance companies play a significant role in the functioning of the credit system of Ukraine among parabanking institutions. The analysis of the main indicators of the activity of insurance companies and the dynamics of their number is carried out. It is found that despite the decrease in the number of insurance companies in dynamics, the volumes of gross insurance premiums and gross insurance payments are characterized by positive growing trends. Factors influencing such changes are the exit from the market of unreliable and financially insolvent insurers; change of views on life insurance, assets and liability, as well as an active development of partnerships with foreign counterparties and the emergence of insurance companies with foreign capital on the domestic market. The article also provides a rating of insurance companies by assets at the end of 2020 and defines their share in the assets of the credit system in general. Prospects for further research are to distinguish the main reasons for the downturn in the number of insurers and their impact on the state of the financial services market as a whole.

scholarly journals HIERARCHICAL-TYPE STRUCTURES OF THE INDUSTRIAL ENTERPRISE

2014 ◽  
Vol 9 (1) ◽  
Author(s):  
Artur Kotchetkov
Keyword(s):  
Hierarchical Structures ◽  
Insurance Companies ◽  
Enterprise Management ◽  
Effective Management ◽  
Empirical Observation ◽  
New Approach ◽  
The Real ◽  
Wide Range ◽  
Banking Institutions ◽  
Research Findings

The assessment of hierarchical structures has long been under examination by scientists for more than a hundred years.  Hierarchical structures are significantly associated with effective management and bureaucratic decisions making.  A wide range of problems exists on this subject, including the analysis of the most applied management models at the enterprises.  These models describe hierarchical structures, and also permit the reduction in management expenses.  Methodological basis of the real research are classical concepts presented in different branches of the management theory.  The real research is based on methods of the functional and structural analysis, as well as on empirical observation method.Adequate evaluation of hierarchical structures enables an achievement in efficiency of enterprise management.  The importance of the research findings comprises the presented recommendations and in a new approach of  hierarchical structures assessment.  These results can be used by market-related institutes, e.g. insurance companies, banking institutions, auditor companies, etc.

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