THE INSTITUTION OF BANKASSURANCE IN THE INSURANCE MARKET OF SERBIA

The modern insurance business often borders on activities performed by banks. The separation line is sometimes ambiguous and with no clear configuration. The classic and straightforward insurance activities, belong to the past. “Money” is earned particularly within that grey zone of operation. Developed countries of EU, noticed this phenomenon long time ago. The relation “insurance-bank” and vice versa, takes the shape of various forms of organizing, ranging from mutual entering into proprietary relationship, to reciprocal use of the sales network as a favorable distribution channel. In that way an overpowering synergy is created and it signifies cooperative work which improves the effectiveness of the whole.

Bank assurance is the assurance provided by the banking system through the selling of insurance and other banking products. Banks of today do not only concentrate on financial support and services to business loans and development; they also offer financial independence by merging with independent insurance companies. Other banks establish their own insurance companies. It is better to purchase insurance products from your bank rather than from insurance agents because you need not transfer from one place to another in times of payment.