Digest Finance

Analysis of Credit Institutions' Risks in the Bancassurance Market

Vol. 24, Iss. 1, MARCH 2019

PDF  Article PDF Version

Received: 9 July 2018

Received in revised form: 25 July 2018

Accepted: 9 August 2018

Available online: 29 March 2019

Subject Heading: Banking

JEL Classification: G21, G23, G32

Pages: 3-12


Yusupova O.A. Russian University of Transport, Moscow, Russian Federation


Subject The intensifying competition in the financial market urged its residents to create complex products, establish partnership relations and cross-distribution channels. Bancassurance became a new area of cooperation. The business cooperation of banks and insurance companies not only presents new product offerings for customers and enable them to increment their income, but also entails various risks.
Objectives The research studies the premises and nature of banking risks in the bancassurance segment, defines its types, evaluates consequences and outlines preventative measures.
Methods Studying banking risks, I applied methods of logic and economic analysis.
Results I examined the current situation in the bancassurance segment, determined its key trends, pinpointed banking risk factors and proposed the typification of risks detailed as per credit and non-credit insurance. Based on the typification, I conducted the comprehensive analysis of each type of probable scenarios.
Conclusions and Relevance The probability and level of the bancassurance risk depend on the type of an insurance product, status of the bank acting as a beneficiary or agent, bank's affiliation with the insurance company, quality and performance of insurer certification requirements the banks sets. Banking is exposed to serious reputation risks. The opaque partner acceptance system triggers abuses during the transition from collective agreements to agency. The unregulated nature of this aspect may cause massive bankruptcy of insurance companies, undermine the public confidence and corporate customers in financial institutions and damage the megaregulator's reputation.

Keywords: banking risk, bank exposure, bank insurance, bancassurance, sales channel


  1. Averchenko O.D. [Conceptual approaches of the organization and functioning of the bancassurance modern forms]. Ekonomika i predprinimatel'stvo = Journal of Economy and Entrepreneurship, 2015, no. 11-2, pp. 868–871. (In Russ.)
  2. Zaitseva A.V. [Insurance of bank risks: Legal construction, main areas and importance in bank activity]. Bankovskoe pravo = Banking Law, 2016, no. 5, pp. 62–65. (In Russ.)
  3. Ruchkina G.F. [Obligations under credit contracts nominated in foreign currency and secured by mortgage: Some problems of restructuring]. Bankovskoe pravo = Banking Law, 2015, no. 1, pp. 7–11. (In Russ.)
  4. Sarsenova E.G. [Bank assurance and problems of its development in Russia and foreign countries]. Baikal Research Journal, 2015, vol. 6, no. 3, pp. 13. (In Russ.) URL: Link.13
  5. Shepelin G.I., Krylova I.Yu. [Modern problems of bancassurance formation in Russia]. Ekonomika i sotsium, 2016, no. 1, pp. 1018–1023. (In Russ.) URL: Link
  6. Yusupova O.A. [Investment lending in crisis]. Innovatsionnaya ekonomika i obshchestvo = Innovative Economy and Society, 2016, no. 2, pp. 81–88. (In Russ.)
  7. Grishin P.A., Tsyganov A.A. [Analyzing the efficiency factors of a bank insurance group]. Finansy =Finance, 2007, no. 9, pp. 43–46. URL: Link (In Russ.)
  8. Rusetskaya E.A. [Insurance development as a tool to increase economic security efficiency in Russia]. Regional'naya ekonomika: teoriya i praktika = Regional Economics: Theory and Practice, 2010, no. 6, pp. 40–48. URL: Link (In Russ.)
  9. Tsyganov A.A., Bryzgalov D.V., Yazykov A.D., Semenyuk A.G. [Applying insurance mechanisms to increase the availability of mortgage loans for the Russian population]. Finansovaya analitika: problemy i resheniya = Financial Analytics: Science and Experience, 2015, vol. 8, iss. 1, pp. 11–20. URL: Link (In Russ.)
  10. Yusupova O.A. [Development of remote banking and its place in the banking competitive environment]. Finansovaya analitika: problemy i resheniya = Financial Analytics: Science and Experience, 2016, vol. 9, iss. 33, pp. 37–51. URL: Link (In Russ.)
  11. Ekimov A.V. [Bancassurance development in Russia: Problems and prospects]. Vestnik Samarskogo gosudarstvennogo ekonomicheskogo universiteta = Vestnik of Samara State University of Economics, 2016, no. 2, pp. 90–96. URL: Link (In Russ.)
  12. Nechaev A.I. [Interaction between banking and insurance companies in Russia: Development prospects]. Teoriya i praktika obshchestvennogo razvitiya = Theory and Practice of Social Development, 2018, no. 2, pp. 1–6. URL: Link (In Russ.)
  13. Podoprigora I.V., Mendus' R.R. [The development of bank insurance]. Vektor ekonomiki = Vector of Economy, 2017, no. 2, p. 14. (In Russ.)
  14. Fomina K.S., Rogozhkina N.S. [Bancassurance and prospects for its development]. Integratsiya nauk = Integration of Sciences, 2017, no. 4, pp. 40–42. (In Russ.)
  15. Kheinonen V.A. [The Study on tendencies of bank assurance development in Russia]. Korporativnaya ekonomika, 2018, no. 2, pp. 34–44. (In Russ.)

View all articles of issue


ISSN 2311-9438 (Online)
ISSN 2073-8005 (Print)

Journal current issue

Vol. 24, Iss. 3
September 2019