ALLFINANZ AND DISTRIBUTION CHANNELS - COMPETENCE OR COMPETITION

Adaptation to new needs and requirements of clients results in the appearance of various forms of cooperation between insurance companies and banks. The concept of all-financing implies that the insurance service can be found at the points of sale of banks and at the same time represents the strongest competition for bank savings. When insurance services are sold to banks, there is a decrease in total distribution costs, as banks use a multi-client database, and they also generate revenue when they sell services in co-operation with a partner or sell the services of an insurance company established by the bank itself. In this type of cooperation, insurance companies see the possibility of expanding their portfolio, i.e. increasing the number of insurance with lower distribution costs because they use the already developed sales network of the bank. We can say that all-financing represents a synergy between insurance and banking, so that the services of both branches economically reach the common base of clients. The emergence of bancassurance in the form allfinaz implies many theoretical considerations but also to better and worse off attempts embodiments in practice. When it comes to Serbia, the domestic insurance market despite much progress can still be considered underdeveloped. The development of bancassurance instruments can contribute to its improvement, through the creation of new services. However, it is certain that the existing cooperation between the insurance and banking to be rebuilt. As well as to strengthen all aspects of the competition and the competition between the two parties.