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@article{ART000980957},
author={Sangche Lee and Chung，Jaewook},
title={Bancassurance and Consumer Value Issues: Reverse Competition and Tying},
journal={Journal of Insurance and Finance},
issn={2384-3209},
year={2005},
volume={16},
number={3},
pages={33-62}

TY - JOUR
AU - Sangche Lee
AU - Chung，Jaewook
TI - Bancassurance and Consumer Value Issues: Reverse Competition and Tying
JO - Journal of Insurance and Finance
PY - 2005
VL - 16
IS - 3
PB - Korea Insurance Research Institute
SP - 33
EP - 62
SN - 2384-3209
AB - The regulatory revisions on the second phase bancassurance in K orea can deterbanks from conducting unfair business practices leveraging on t heir relatively strongbargaining power. However the current revisions may also elimin ate the possibilitythat innovative new entrants overtake the incumbents, thus even tually reducingthe market efficiency as a whole. Also the regulation has some aspects which arenot incentive comparable, so it costs more to enforce it than o therwise. Therefore inorder to make the bancassurance market more fair and effective as well as toenhance the consumer’ s value extensively, it is essential to eradicate the roots ofproblems through incentive-compatible regulations which align b anks’interestswith those of insurance companies and consumers. As for policy measures to copewith ‘reverse competition’incentive between insurance companies and banks, wepropose ①introducing an exclusive agency system, ②rearranging c ommissionpayment structure, and ③setting up the minimum loss ratio. As f or regulatorymeasures to eliminate incentive for ‘tie-in sale’between banks and consumers, wesuggest ① revising the existing regulations on sales practices, ②strengthening theconsumer’s rights, and ③improving the transparency of insurance products byreinforcing information disclosure.
KW - bancassurance;incentive-compatible regulation;reverse competition;tying
DO -
UR -
ER -

Sangche Lee and Chung，Jaewook. (2005). Bancassurance and Consumer Value Issues: Reverse Competition and Tying. Journal of Insurance and Finance, 16(3), 33-62.

Sangche Lee and Chung，Jaewook. 2005, "Bancassurance and Consumer Value Issues: Reverse Competition and Tying", Journal of Insurance and Finance, vol.16, no.3 pp.33-62.

Sangche Lee, Chung，Jaewook "Bancassurance and Consumer Value Issues: Reverse Competition and Tying" Journal of Insurance and Finance 16.3 pp.33-62 (2005) : 33.

Sangche Lee, Chung，Jaewook. Bancassurance and Consumer Value Issues: Reverse Competition and Tying. 2005; 16(3), 33-62.

Sangche Lee and Chung，Jaewook. "Bancassurance and Consumer Value Issues: Reverse Competition and Tying" Journal of Insurance and Finance 16, no.3 (2005) : 33-62.

Sangche Lee; Chung，Jaewook. Bancassurance and Consumer Value Issues: Reverse Competition and Tying. Journal of Insurance and Finance, 16(3), 33-62.

Sangche Lee; Chung，Jaewook. Bancassurance and Consumer Value Issues: Reverse Competition and Tying. Journal of Insurance and Finance. 2005; 16(3) 33-62.

Sangche Lee, Chung，Jaewook. Bancassurance and Consumer Value Issues: Reverse Competition and Tying. 2005; 16(3), 33-62.

Sangche Lee and Chung，Jaewook. "Bancassurance and Consumer Value Issues: Reverse Competition and Tying" Journal of Insurance and Finance 16, no.3 (2005) : 33-62.