On The Cooperation Of China's Current Bancassurance

Bancassurance is referred to banks enter insurance field through offering insurance products to their customers. Emerging from 1980's, it has deeply developed in Europe. Its benefit to bank, insurance company and customer are becoming more and more obviously: Banks increase their income, decrease costs as well as offer multi-product to customers through bancassurance; Insurance company hope to increase their reputation, decrease costs, at the meanwhile, expand its distribution channels; Furthermore, it is very convenient for customers to get one-stop service. Currently, on the one hand, customers in China are becoming aware of the financial ideas so that the demand for high-level financial product is extremely increased; On the other hand, with the globalization of the finance around the world, China which has entered the WTO is facing the challenges from foreign financial constitution. The development of bancassurance will have great influence on the trend of the finance industry of China. So the research in this field is indispensable, especially in China. This dissertation studies the activities of the cooperation between bank and insurance company from micro view. In contrast to traditional methods of studies from macrocosmic and whole view, from the action of the two cooperators, this dissertation analyses their benefit by maximizing their own function and get the cooperative space as well as the strategy of this cooperation. In the literature of this field, the studies of individual action are ignored frequently, but the analysis in this dissertation is based on the studies of individual action. NPV model and Game theory are used in this dissertation. Different from previous study, focusing on the special situation in China, this dissertation analyses the advantages and the disadvantages of bancassurance by NPV model from explaining various elements of the partners who take part in this cooperation and get the space of the cooperation. Then Game Theory is applied in this dissertation on this field, analyzing the best strategy not only for bank but also for insurance company. This dissertation offers useful suggestion for both bank and insurance company to further their cooperation, especially in China. I hope they are useful.