Bancassurance is now the dominant model in the majority of European Financial Services markets and this is also true in Turkey. The traditional relatively expensive distribution channels of Agency & Brokerage are quickly losing market share as both banks and insurance companies rush to make agreements together. ‘Sounds good?’ These forced alliances can provide a very profitable arrangement for both sides but often there are huge culture and operational problems that can lead to big losses and customer dissatisfaction.
As bank interest rates decline and new regulation restricts credit and charges there will be an even greater pressure on Bancassurance as a new revenue stream for banks. New Pension regulation is forcing pension companies to heavily control their commission structure and this could lead them to cut ties with their Agency & Brokerage channel.
Bancassurance when planned, launched and managed is beneficial to all parties and has an enormous role in the distribution of Long-term Savings, Investments & Insurance in Turkey. Shaw International can help ensure that you get maximum value from your Bancasurance channel.