Situation of bancassurance in the local scenario : a bankers’ perspective

Abstract

Banking services nowadays diverged from traditional banking to a ‘one-stop-shop’. Bancassurance is known as the merging of bank and insurance industries allowing for the “distribution of insurance products through a bank’s branch network” (Pal, 2005). The concept of bancassurance in Malta is a fairly newer concept which was introduced in 1994. The aim of this study sought to analyse in detail the perception of bancassurance professionals of the local market. A qualitative research approach was undertaken utilising interviews as the research method to gain an in-depth understanding. Semi–structured and open-ended interviews presented the opportunity for detailed investigation and subjectcoverage. Qualitative data analysis was applied throughout the research which seeks to describe the ‘textual data’ obtained from the interviews by capturing the main themes and relationships through a process of discovery. The findings were reviewed and illustrated by means of a conceptual map outlining the main features of the local bancassurance market. The findings illustrate that culture, regulation and politics are the key factors which impinge on the low knowledge competence in our local society. Financial literacy is a problem irrespective of social status which banks, insurance companies and governments should seek to address. By addressing this problem and increasing awareness, people may be more inclined to purchase life insurance products and opt for investment products.