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Bancassurance Concept From The Perspective Of Montenegrin Market

Author

Listed:
  • Milijana Novovic Buric

    (University of Montenegro, Faculty of Economics Podgorica)

  • Vladimir Kascelan

    (University of Montenegro, Faculty of Economics Podgorica)

  • Sasa Vujosevic

    (University of Montenegro, Faculty of Economics Podgorica)

Abstract

Integrated services of financial institutions contribute to the quality and development of financial markets. The collaboration of banks and insurance companies through the bancassurance model, as the distribution channel of insurance products, results in reduction of business risk and costs of market research and achieves better profitability and other mutual l benefits which have a positive effect on the performance of the insurance and financial markets. More specifically, the effective implementation of bancassurance provides benefits to banks, insurance companies, and to their customers. Although bancassurance has development perspective on the Montenegrin market, the paper will prove that adequate education and motivation of employees in the banking sector, as well as the adequate demand for this type of financial services, are necessary for its successful implementation. The purpose of this paper is to show the current trend of banks entering the insurance market in Montenegro and to point out the perspective and development problems of bancassurance in Montenegro.

Suggested Citation

  • Milijana Novovic Buric & Vladimir Kascelan & Sasa Vujosevic, 2015. "Bancassurance Concept From The Perspective Of Montenegrin Market," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 13(2), pages 62-73, November.
    • Handle: RePEc:tuz:journl:v:13:y:2015:i:2:p:62-73
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    References listed on IDEAS

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    1. Hughes, Joseph P. & Lang, William W. & Mester, Loretta J. & Moon, Choon-Geol, 1999. "The dollars and sense of bank consolidation," Journal of Banking & Finance, Elsevier, vol. 23(2-4), pages 291-324, February.
    2. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    3. Saunders, Anthony & Walter, Ingo, 1994. "Universal Banking in the United States: What Could We Gain? What Could We Lose?," OUP Catalogue, Oxford University Press, number 9780195080698, Decembrie.
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    Cited by:

    1. Ivana Marinovic Matovic, 2019. "Bancassurance: Challenges and Opportunities in Republic of Serbia," Proceedings of the 13th International RAIS Conference, June 10-11, 2019 08IM, Research Association for Interdisciplinary Studies.
    2. Emel Savku, 2023. "A Stochastic Control Approach for Constrained Stochastic Differential Games with Jumps and Regimes," Mathematics, MDPI, vol. 11(14), pages 1-20, July.

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    More about this item

    Keywords

    financial services; banks; insurance sales channels; bancassurance; insurance market;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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