Banc Assurance in Europe

Level: Undergraduate | Grade: 2:1 | Approx. Word Count: 8,750

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The aim of this paper is to focus attention on the reasons behind the success of the banc assurance industry and its rapid development in Europe, particular with of the North Western European countries

During the latter part of the twentieth century, the continuing reform, liberalisation and deregulation of the national and international financial markets has facilitated the increased globalisation of financial institutions (Balino and Ubide 2000; Davies 2000; Perez et al 2005). One financial sector where the outcome of these changes has perhaps had the most dramatic impact in recent years is the insurance industry.  During the early stages following the liberalisation of the financial sector, the market changes were focused predominantly on an increase in cross border mergers and acquisitions, and alliances within the private and commercial banking sector (Balino and Ubide 2000). Initially, this new development in the financial services market led to a number of alliances, take-overs and mergers in the banking sector. However, corporations within the banking industry were still not satisfied with confining their activities solely to the banking sector, as it did not provide the scale of cost reductions required. In an effort to achieve a greater level of cost efficiency, return on investment and to extend the services they offer to consumers, an increasing number of banks have sought to develop strategic partnerships with organisations within the insurance and pensions industries.