Influence of Bancassurance on Non-life Insurance Sector Performance – Case of Selected European Countries

Bankassurance is becoming increasingly important distribution channel in the insurance markets. Therefore, the authors wanted to find out if and in what direction bankassurance affects nonlife insurance industry performance measured with sales profitability. The analysis is conducted on the case of selected European countries, i.e. on the sample of Croatian, Slovenian, Spanish and Portuguese insurance industries using aggregate data for the period 2009-2015. The analysis is conducted using static panel analysis. Control variables used in the model comprise of market share, size based on gross written premium, insurance premium growth, losses growth and share of reinsurance. The results showed that bancassurance does not play an important role in determining non-life insurance sector profitability whereas size and non-life gross written premium growth have statistically significant and positive influence on performance. Moreover, reinsurance has an adverse effect on performance.