Expansion and consolidation of bancassurance in the 21st century

Bancassurance has received much attention from both researchers and policymakers, as it is a major step towards the creation of universal financial markets in the 21st century which are no longer segregated based on industry operations. This study is the first comprehensive study to identify and measure the determinants of bancassurance using a sample of firms from 28 developed and developing countries. Our results complement the existing literature on bancassurance demand, insurance demand, and international insurance services, while also providing additional insight in key areas. The empirical results, based on panel analysis, indicate that reduction in company risk, the size of the company, reductions in company costs and increases in company revenues, the size of the national banking industry, the level of financial deregulation within a country, and the national inflation rate all play significant roles as determinants of bancassurance.