방카슈랑스 도입에 따른 생명보험회사의 대응전략

Life Insurer's Strategy against Introduction of Bancassurance

Bancassurance has been introduced in line with the deregulation and the liberalization of the financial market while the demographic trends caused by declining birth rates and extended life expectancy resulted in ageing society requiring new long term pension programs. It has been rapidly developing in European countries as it provides a one-stop banking service to customers despite some negative factors. Various discussions have been made in Korea on how to implement Bancassurance. Although some Korean life insurers and academics have been suggesting to postpone Bancassurance, it is desirable to implement it as scheduled to cope with increasing competition throughout the world. A life insurance company may not participate in Bancassurance if the company prefers acquisition of other insurance companies to enjoy economies of scale. In case a company decides to join Bancassurance, however, partnership with a bank for sales only would be the cheapest way even though the relationship is a quite fragile. Setting up a joint venture company with a bank will bring a stronger relationship with a bank as an alternative to the sales partnership. Since even joint venture was found not successful in many cases, acquisition or establishment of a bank will make the Bancassurance relationship with a bank the most solid on a long term basis assuming legal constraints for such acquisition will be abolished or disappear. Therefore, Korean life insurers should make a proper decision on Bancassurance much earlier than official introduction of Bancassurance taking into consideration pros and cons of each strategy.