What are the main elements that make the difference between markets where bancassurance was developed and those markets where bancassurance is less developed?
Tobias SCHNEIDER: In terms of distribution share of the bancassurance channel France, Italy and Spain are among the most successful insurance markets in the world. Indeed, in France and Spain the banking channel accounted for more than 60% of total life insurance premiums in 2012. Moreover, FINACCORD research shows that among the world's most prominent banking groups in terms of premiums written by captive or joint venture underwriters, three of the top ten originated from France and one from Italy. A key factor to this success story is the strong integration of the banking and insurance business. Not only do banks in these countries very efficiently cross-sell insurance products linked to banking products (e.g. creditor and household insurance) but they have also created a business model whereby both business lines go naturally together. As such, it does not come as a surprise that banks in France, for instance, call themselves 'banque et assurance' (banking and insurance). Finally, France, Italy and Spain are markets in which captive and joint venture underwriters (as opposed to external underwriters not owned by banks) dominate the bancassurance sector.

In contrast, in markets where bancassurance is comparatively under-developed, banking organisations have often not managed to integrate the insurance business into their traditional banking activities. In many cases partnerships between banks and insurance companies are fairly loose and staff at the bank branches are often not trained well enough to successfully cross-sell insurance products. Indeed, banks often consider insurance as a side line, although examples from other countries show that bancassurance can make a very a significant contribution to rance income accounts for roughly 30% of the bank's total profit. a bank's total profit. For example, for Bradesco, a major Brazilian banking group, insurance income accounts for roughly 30% of the bank's total profit. 

What differentiates eastern bancassurance market from the west?
T.S.: FINACCORD does not see any structural differences in bancassurance per se between Western and Eastern insurance markets in Europe. In fact, in a number of Eastern countries such as Poland and Turkey, bancassurance has been one of the main success stories in recent years. Moreover, in countries where foreign banking groups have a large share of the market (e.g. in the Czech Republic), bancassurance markets look quite similar to Western countries.

How is seen Romania from London, regarding insurance market (in general) and bancassurance market (in particular)?
T.S.: FINACCORD has conducted research into a total of 20 bancassurance markets in Europe and a number of other bancassurance markets elsewhere in the world (e.g. Brazil, China, India, Japan). As such, we have gathered a very comprehensive overview of what important success factors are, how bancassurance markets are structured, what regulations are in place and what products are most successful. In addition, FINACCORD has systematically researched the bancassurance strategies of the world's 125 largest retail banking groups.

The Romanian insurance market has clearly performed weakly in recent years, particularly when compared to other insurance markets in Central and Eastern Europe such as the Czech Republic and Poland. Apart from Hungary, Romania is in fact the only insurance market with a negative compound annual growth rate between 2008 and 2012 when measured in real terms (i.e. discounting for inflation). As such, compared to its regional peers the Romanian market remains quite under-developed with only EUR 89 in GWP (gross written premiums) per capita in 2012. This means that Romania stands at less than a third of the regional average of EUR 333 per capita and way below the Czech and Polish levels (EUR 582 and EUR 398, respectively). In particular, the life insurance market, which accounts for only around 20% of the total market, is especially under-developed.

With regards to bancassurance, it is interesting to note that captive insurance underwriters of banks such as BCR Asigurari de Viata and ING Asigurari de Viata, are among the most successful life insurance companies in Romania in terms of written premiums. In general, FINACCORD believes that bancassurance has the highest potential of any distribution channel in Romania and can indeed be expected to further gain significance in the future.