Strengthening the Role of Insurance Distribution Channel through Banks - Bancassurance for Entities and Economies

Bancassurance is understood as a partnership between a bank and an insurance company. The Bank leverages its database and sales channel system to sell insurance products to efficiently distribute banking and insurance products. The paper clarified the theoretical basis of bancassurance and evaluated in detail its important roles for insurance businesses, commercial banks, customers and the economy. Based on insurance market data, the authors have commented on the impact of the rapid growth of Bancassurance distribution channels at banks, but the management and supervision system has not changed in time, leading to many mistakes, losing the image of businesses, affecting the interests of customers and adversely affecting the Vietnamese economy. The authors propose several solutions for management agencies, insurance companies, and commercial banks to better develop bancassurance activities, thereby enhancing the role of this distribution channel in Vietnam's economy.