Does Bancassurance Reduce the Price of Financial Service Products?
- C. Charles OkeahalamAffiliated withBenefit Advisory Research, Group AGH Email author
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I assess the impact of bancassurance on the price of retail financial services. I find that service fees in a product bundle increase less than proportionally to the number of services; that an increase in the number of clients in each product bundle market reduces fees by 1.5%; that the degree of competition in the markets of each bundle also reduces fees; that premium products have higher average costs; and finally, that cross-holdings reduce prices by about 5% and bancassurance reduces prices by just over 6%. The price reduction declines if both strategies are combined.
KeywordsBancassurance products bundles prices
JEL ClassificationD01 G2 L11 L23
- Does Bancassurance Reduce the Price of Financial Service Products?
Journal of Financial Services Research
Volume 33, Issue 3 , pp 147-162
- Cover Date
- Print ISSN
- Online ISSN
- Springer US
- Additional Links
- products bundles
- Industry Sectors
- C. Charles Okeahalam (1) (2)
- Author Affiliations
- 1. Benefit Advisory Research, Group AGH, Post: Private Bag X9, Postnet Suite 410, Benmore, Johannesburg, 2010, South Africa
- 2. 1st Floor, North Block, Sanlam Park, 9 Fredman Drive, Sandton, Johannesburg, 2193, South Africa