Bank insurance is a combination of channel innovation, product innovation, system innovation and organizational model innovation. From its emergence to development, the field of practice is ahead of theoretical research. Even so, experts and scholars at home and abroad are still committed to the theoretical research of bank insurance, and the research results mainly focus on the theoretical definition and motivation of bank insurance. This section will analyze the definition of bank insurance.

I. Definition of bank insurance

Ban insurance is a French word, and its original meaning has obvious characteristics of "bank" and "insurance". What is bank insurance? Is it a sales channel or an innovative product? Is it a business form or a new organization? Like many economic concepts, the definition of bank insurance is varied. Scholars in the industry define bank insurance from different angles such as sales channels, business strategies, organizational forms and business processes. This book divides various definitions into three categories: channel theory, product service theory and business strategy theory.

1. Channel says. Channel theory is the most intuitive understanding of bank insurance and the main definition of its early development. From the initial form of bank insurance, the so-called bank insurance refers to the use of banks and other channels to sell insurance products (life insurance products). Dorisa. K. Flur came to the conclusion that "bank insurance is the $ TERM for banks to sell insurance" (life insurance marketing and research association, according to insurance dictionary compiled by LIMRA), and bank insurance refers to "providing life insurance services through wholly-owned branches of banks and building associations, rather than insurance companies." Scholars in Taiwan Province Province of China have also made a similar definition: "Selling insurance products to bank customers through banks." (Linglongbao, 1999) In the report "Bank Insurance in Asia" published in 2002, the world-famous Swiss Reinsurance Company also believed that the simplest form of bank insurance is to sell insurance policies through banks. In July, 2002, OECD defined bank insurance as "the most common thing is that banks sell insurance products, and vice versa" in its 2000 report "World Financial Services Integration: Future and Problems".

2. Product service theory. The product service theory defines bank insurance as all products and services jointly provided by banks and insurance companies. Alan Leach, a scholar, mentioned in his book "Problems and Development Prospects of European Banking Insurance in 2000": "Banking insurance is a service for manufacturing, marketing and distributing insurance products, including traditional banks, savings banks and building associations." The British insurance industry defines bank insurance as "a kind of business behavior of banks, that is, banks sell insurance products usually provided by insurance companies". Dr. Michael D.White, an American scholar, defines bank insurance as "any product or service that banks or their branches, banks and insurance companies cross-hold and operate insurance products with asset management functions, and cross-market or sell banking and insurance products." Michael D. White, Comprehensive Guide to Bank Insurance, National Insurance Company, 1998. On page twenty-five. In Germany, bank insurance is also regarded as all products and services that insurance companies and banks can provide to meet customers' needs. China scholars Kevin Z and Sun Qixiang also understand bank insurance from the perspective of product provision, arguing that "bank insurance, also known as bancassurance financing, is an integrated arrangement of financial services between banks and insurance companies, with insurance companies responsible for product manufacturing and banks responsible for product sales."

3. Business strategy theory. Business strategy theory defines bank insurance as the business strategy adopted by banks or insurance companies related to their main business operations. In "Bank Insurance: Investigation on Competition between Banks and Insurance" published by Swiss Reinsurance Company 1992, bank insurance is defined as "the strategy adopted by banks or insurance companies to operate the financial service market in a strong and weak way". According to the report of Munich Reinsurance Group 200 1 "Banking Insurance Practice", banking insurance refers to "providing insurance and banking products and services to a group of the same customers through the same sales channels" (banking insurance refers to providing insurance and banking products and services to the same customer groups through the same distribution channels). Munich reinsurance company, bank insurance practice, 200 1. Business strategy theory emphasizes that banks and insurance companies, two different financial departments, jointly carry out product development, marketing and distribution. In China, scholar Luan Peiqiang (2000) defined this as "banks provide insurance products to customers in various ways, thus entering the insurance field. Banks can not only directly sell insurance products by setting up their own insurance companies, but also sell insurance products as insurance intermediaries of insurance companies, and can also jointly operate insurance products with insurance companies. " (Luan Peiqiang, 2000) Zhang regards bank insurance as "the strategy of mutual penetration and integration adopted by insurance companies and banks, that is, linking banks with insurance and other financial services, providing insurance-related financial products and services through the integration of customer resources and the enjoyment of sales channels, and meeting the diversified financial service needs of customers in a comprehensive business form." (Zhang, 2003)

Through the above three definitions, we can easily find that the business strategy theory reflects the essential attribute of bank insurance phenomenon more comprehensively than the channel theory and product service theory. Channel theory is only a summary of the superficial characteristics and initial performance of bank insurance, and can not reflect the characteristics of advanced business models such as sales alliance, joint venture and new enterprise, which makes people mistakenly think that bank insurance is the third supplementary channel besides insurance agents and brokers. In fact, with the gradual development and deepening of bank insurance, as a business strategy of enterprises, bank insurance can create and include more cooperation between banks and insurance companies, rather than just selling insurance products through the network of bank branches, which is an early model of bank insurance. Product service theory pays more attention to the characteristics of joint development, marketing and distribution of insurance products by banks and insurance departments. At this time, bank insurance has the characteristics of bank-insurance integration. Banks are no longer a single distribution channel, but participate in the early design and development of insurance products. At this time, bancassurance products are more targeted and more suitable for bank sales. This statement obviously goes further than the channel theory, but it is not all. A successful bank insurance operation also includes other factors such as culture, technology and channel integration, so the product service theory is also biased. The theory of business strategy emphasizes that the combination of bank insurance and bank insurance is the strategic choice of both parties. According to different market conditions, the strategic choices of both sides can have different modes in different countries, even in different regions of the same country. The key to the success of strategic choice lies in whether the two sides can effectively integrate their own resources, which requires both sides to integrate not only channels and products, but also technology and culture. Therefore, the theory of business strategy reflects the essential attributes of bank insurance phenomenon more comprehensively than the theory of channels and product services.

After summarizing and comparing several definitions of bank insurance studied at home and abroad, we believe that the definition of "banks enter the insurance field by providing products to customers in various ways" which is generally accepted in China is still not broad and does not cover both parties and all the contents. Because from the perspective of financial integration, banks can not only sell insurance products, but also participate in the manufacturing process of insurance products. Banking products provided to customers have several functions, such as guarantee, guarantee and investment. Generally speaking, insurance business can be divided into the manufacturing process and distribution process of insurance products, in which the manufacturing process includes product design, underwriting and claim settlement. Traditionally, only insurance companies have the professionalism of manufacturing process; The sales link can be outsourced or entrusted to other financial institutions, which is not the core technology and competitiveness of insurance companies.

We believe that bank insurance is a series of "all-round accommodation" between commercial banks and insurance companies with the development of financial integration and economic globalization. In this regard, this book understands the broad concept of bank insurance, and puts forward the following definition for discussion with readers: "Bank insurance, as the product of economic globalization, financial integration and financial service integration innovation, refers to a strategy of mutual integration and mutual penetration adopted by banks or insurance companies, that is, making full use of and coordinating the superior resources of both sides, providing financial products with both banking and insurance characteristics for the same customer group through the same sales channels, and operating in an integrated manner.

Second, the difference between similar concepts and bank insurance

At the level of theoretical discussion, there are several concepts similar to bank insurance, which are often borrowed from each other in theoretical research. But in fact, the following concepts are quite different:

1. Bank insurance and insurance finance

According to Sima's understanding, bank insurance not only refers to the unilateral entry of banks into the insurance field (bancassurance), but also includes the entry of insurance companies into the banking field, that is, insurance companies sell products related to the traditional business of banks, which is called insurance finance. In other words, bank insurance in a broad sense is not limited to the insurance business of banks, but also includes the banking business of insurance companies, realizing cross-selling and mutual penetration. But in practice, because the concept that bank products are provided by banks is deeply rooted in people's hearts, bank insurance often refers to banks entering the insurance field, and this book is also based on this understanding. On the contrary, insurance finance rarely happens in the practical field, mainly because of the specificity of assets. Because the cost of insurance companies entering the banking field is often higher than that of banks entering insurance companies, insurance finance is far from reaching the level of bank insurance.

2. Bank insurance and bank insurance cooperation

Bank-insurance cooperation is a proper term in China, and there is no corresponding technical term in English. Generally speaking, bank-insurance cooperation refers to all business cooperation that banks and insurance companies can engage in. Different from the experience of developing bank insurance abroad, China is under a separate financial management system, and the cooperation between banks and insurance companies is the main body of both parties from the beginning, so it is difficult to reach the highest degree of bank insurance-the degree of integration. Therefore, in China, "bank-insurance cooperation" is a word that appears more frequently than bank insurance, which mainly covers the cooperation between commercial banks and insurance companies in many aspects: First, agency cooperation, mainly including agency sales, collection of insurance premiums, agency payment of insurance premiums and settlement of claims. That is, the primary development stage of bank insurance; The second is complementary cooperation, which mainly includes agreement deposit, fund remittance and settlement, general financing and credit financing, insurance asset custody, bank consignment fund purchase, e-commerce, bank card business, fixed asset insurance and employee protection plan. This is mainly based on the advantages of banks in fund settlement and insurance companies in risk protection; Third, in-depth cooperation, including database connection, human resources cooperation and joint product development. It can be seen that the cooperation between bancassurance is based on the business cooperation between two independent entities, while bancassurance is based on the same interests, uses the same business platform, and provides the bancassurance products researched by both parties for the same customers, which may be merged into one at the highest stage of development.

3. Bank insurance and agency insurance

The so-called agency insurance means that banks, as part-time agents, act as agents for insurance companies to sell their products to individuals, companies and institutional customers. From the comparison of several definitions of bank insurance, we can see that agency insurance is the primary stage of the development of bank insurance, and it is only for product cooperation. The development process of bank insurance has gradually changed from initial agency sales to capital penetration, and then to the integration of bank and insurance (that is, banks have realized the simultaneous manufacturing and sales of insurance products, organically integrated banking business and insurance business, and provided customers with "package" financial services). Therefore, bank insurance is a broader concept, and agency insurance is only a relatively narrow understanding.

From the above research, we can easily find that bank insurance is a dynamic development process. With the different historical stages, the theoretical and practical circles have a deeper understanding of bank insurance, from the initial one-way flow of insurance company products to the two-way flow of banks and insurance. Both commercial banks and insurance companies can penetrate each other, and through the intersection of funds, tools and business, a situation in which you have me and I have your resources, complement each other's advantages and win-win interests is formed.

Third, the origin and development stage of bank insurance

In fact, the combination of banking and insurance has a long history. For example, companies such as CGER in Belgium, La Caixa in Spain and CNP in France have been providing comprehensive banking and insurance services since19th century. But the real meaning of bank insurance began in Europe in 1980s. After years of exploration and development, the development of bank insurance has spread all over the world, which is not only the main sales model of European insurance industry, but also an important model for financial institutions in the United States, Australia and Asia to expand all-round groups. With Citigroup selling its travel property insurance and life insurance one after another, the bank insurance at this stage presents a new development trend and direction. After combing the development of global banking insurance, this book divides it into four stages:

There are four stages in the development of bank insurance: the first stage: bank insurance before 1980 is in its infancy. At present, bank insurance is limited to the role of banks as part-time insurance agents of insurance companies, that is, banks intervene in the insurance field by charging fees from insurance companies. Strictly speaking, bank insurance has not really appeared, because banks only participate in the distribution of insurance. At this stage, although banks directly sell insurance policies (bank credit guarantee insurance), they only serve as a supplement to bank credit business, with the aim of reducing the risks borne by banks. For example, at that time, many banks required borrowers to insure their collateral when issuing mortgage loans. At this stage of bank insurance, the relationship between banks and insurance companies is pure cooperation, and there is no competition in the manufacture of insurance products, but it has accumulated some sales experience for banks to intervene in the insurance field in the future.

The second stage: The 1980s was the initial stage of bank insurance. At this stage, banks have developed capitalized products that are not exactly the same as their traditional businesses, such as endowment insurance annuity products (the insured pays the annual premium in the bank, and returns the fixed annuity in one lump sum or in installments after a certain period of time, with additional guarantee functions), and have been involved in the insurance field since then. Banks' involvement in the development of capital guarantee products is considered to be the real origin of bank insurance, because objectively banks have been involved in the production of insurance to compete with insurance companies. But at this stage, the development of bank insurance is mainly to expand the business scope of banks in response to the competition between banks, rather than actively entering the production links in the insurance field. Europe is the main market for developing bank insurance at this stage.

The third stage: The late 1980s and 1990s are the mature stages of bank insurance. The main characteristics of this stage are: first, the positive development of bank insurance, banks actively participate in the production and sales of insurance; Second, bank insurance began to spread all over the world, including the United States, Latin America, Australia and Asia. At present, in order to cope with the fierce competition of insurance companies, banks have taken measures such as new establishment, merger and acquisition, and joint venture. Combine banking and insurance business. Not only have the insurance products launched increased significantly compared with the previous stage, but the forms of banks' participation in insurance also tend to be diversified.

In the aspect of renewal of bancassurance products, banks are gradually involved in the manufacturing process of insurance products and launch complex and diverse insurance products. For example, British banks began to directly provide pure guaranteed life insurance products, and Spanish banks also introduced whole life insurance products. As far as the development model of bank insurance is concerned, different financial institutions in different countries have different characteristics. On the basis of the original agency sales, this paper explores several ways of bank insurance: (1) agreement cooperation, that is, banks and insurance companies establish cooperative relations and sales alliances through cooperation agreements or informal cooperation intentions. (2) Joint venture company, a new financial institution jointly established by banks and insurance companies. Combining the advantages of both parties, the new institution operates bank insurance business. (3) M&A, that is, merging two independent banks and insurance companies through M&A.. (4) the new model, banks set up their own insurance companies or insurance companies set up their own banks. It can be said that bank insurance is a strategy of mutual penetration and integration gradually adopted by insurance companies or banks. It can not only link financial services such as banking and insurance, but also provide insurance-related financial products and services through the integration of customer resources and the enjoyment of sales channels, so as to meet the diversified financial service needs of customers in a comprehensive business form.

At this stage, first of all, there is an upsurge of bank insurance in Europe. Under the background of great changes in finance, taxation and legislation, especially the process of European integration has accelerated the unification of financial legislation in various countries, and different financial businesses have gradually merged. Moreover, with the increase of the number of banks, the competition among banks is becoming more and more fierce, and banks are seeking opportunities to develop new business, including insurance business. 1999 At the beginning of this year, the launch of the euro made this trend more obvious. With the help of its unique resources and network advantages, commercial banks have increased the proportion of premium income sold through banks to total premiums. In countries with relatively developed bank insurance (France, Spain, Portugal, Sweden and Austria), its premium income accounts for about 60% of the total business in the life insurance market; In other countries (Belgium, Italy, Norway, Netherlands, Germany, Britain, Switzerland, Finland and Ireland, etc. ), the proportion is between 20% and 35%. In 2002, the proportion of premium income in the life insurance market by sales method was: bank insurance 65%, agent 8%, broker 5%, insurance company staff 13%, and telephone direct sales 8%.

With the development of European banking and insurance, other countries have followed suit. Especially since the 1990s, with the arrival of the fifth wave of global mergers and acquisitions, commercial banks in Europe, America and Australia have made great achievements in developing universal banks focusing on wholesale business and bank insurance focusing on retail financial business.

1990, AMEV merged with ABN Amro VSB, and merged with Belgian Bank AG to form Fortis, becoming the first comprehensive financial group in Europe focusing on developing bank insurance. 199 1 year, ABN Amro, ABN Amro Postal Bank and Dutch National Insurance Company merged to form ing, covering wholesale banking, retail banking, ING direct sales, American insurance, European insurance and Asia-Pacific insurance. 1995 UBS Group AG ag signed a contract with Swiss life insurance, the largest life insurance company in Switzerland; 1997 Credit Suisse and winterthur merged to form Credit Suisse Group. 1998165438+10. In October, Citigroup and Traveler Group merged to form Citigroup, which pushed bank insurance to an unprecedented new climax and created a financial group integrating banking, securities, insurance, trust, fund and asset management, and became a "group mixed operation and legal person separation". Under this trend, in 2000, a large British commercial bank and Lloyd's Insurance Group acquired Scottish Wilders Insurance Company, the sixth largest life insurance company and 200 1 Allianz Germany acquired Dresden Bank, and established the German version of Citigroup. , are typical cases of realizing large-scale operation of bank insurance through mergers and acquisitions.

In Asia, bank insurance in South Korea, Malaysia and Japan is gradually leading, and bank sales insurance in Hong Kong and Taiwan Province Province of China is in the ascendant, which has played an important leading role in the development of domestic bank insurance business. In recent years, China's bank insurance has developed rapidly, and various insurance companies are scrambling to launch insurance products suitable for bank sales. Bank insurance mainly appears in the form of bank agency insurance.

The fourth stage: since 1990s, it has entered the post-maturity stage of bank insurance, also known as specialization stage. At present, there are two completely different trends of bank insurance differentiation: one is to move towards a higher form of bank insurance integration, such as Fortis Group, Allianz Group and Dutch International Group in Europe. These groups have achieved a high degree of integration of banking business and insurance business, not only in product development and sales support, but also have a strong ability to develop bank customers, truly realizing the enjoyment of customer resources and providing customers with ".

The other is to separate the insurance manufacturing or underwriting business from the main business of the bank to realize the professional operation of the main business of the bank, while the bancassurance model is transformed into agreement sales or strategic alliance. In recent years, due to the saturation of the insurance market, some European financial and insurance groups began to divest their risk underwriting activities: in February 1999, UBS Group AG AG sold its insurance risk underwriting and claims settlement business, and Swiss Life bought back 25% of its shares and took full control of the joint venture UBS Swiss Life; ; 200 1, Deutsche Bank sold 75.9% of its insurance holding company and all the shares of Italian, Portuguese and Spanish life insurance companies to Zurich Financial Services Group; In 2004, Fengtai Insurance's life insurance and non-life insurance net income only accounted for 9% and 3% of the group, and Credit Suisse Group plans to divest in the near future. However, none of the above cases has a significant impact on the development of bank insurance. Until June 5438+1October 3 1, 2005, Citigroup, the world's largest financial and insurance group, which had created a new trend of mixed banking and insurance, announced the sale of its traveler life insurance, annuity business and international insurance business (except Mexico), which triggered a continuous debate in the banking insurance market. It seems too early to say that Citigroup has given up the manufacturing of insurance business and started a new era of specialized operation rather than all-round operation. However, it should be admitted that the changes in Citi's insurance business have brought more thoughts to the future development of bank insurance.

By combing the development stages of bank insurance, we can easily see that the development history of bank insurance is a gradual history of bank insurance from the primary stage to the advanced stage of bank-insurance integration, and it is also the result of continuous game and choice of four basic modes: sales agreement, strategic alliance, joint venture company and establishment of financial group. Different countries face different financial regulatory environments, and even financial institutions in the same country have different financial development needs. The development models of bank insurance can be described as endless and different. The later part of this book will make an in-depth analysis of the development model based on the analysis of typical cases, which will not be repeated here.