BANCINSURANCE IN THE FINANCIAL MARKET: ESSENCE, FEATURES AND DEVELOPMENT PROSPECTS
Authors:   Lesya Ukrainka Volyn National University, Ukraine, Borysiuk Olena , Datsyuk-Tomchuk Maria ,   Lutsk Institute of Human Development, University "Ukraine"
Published: May 2023

The development of the financial market around the world leads to structural changes in its business architecture and to the establishment of new distribution models, using which it is possible to increase the sale of certain financial products, their profitability, and also attract new customers. Banking and insurance services cover, in a broader sense, all the services that a private or corporate client needs for the provision of services, management and security of their capital. The processes of globalization and liberalization of financial markets contribute to the creation of new financial structures and products, and the growth of financial opportunities and the development of technologies activate these changes mainly due to the integration and consolidation of already existing ones and the construction of new options on this platform, which allows us to talk about the formation of a consolidated banking and insurance business architecture Financial globalization led to the fact that the development of the financial market and the activity of financial intermediaries in the world today is characterized by the simultaneous strengthening of universalization and the activation of integration processes. Universalization as a global trend in the functioning of the financial market, first of all, manifests itself in the expansion of the spectrum of financial services of certain types of financial intermediaries. Integration at the initial level leads to the unification of financial intermediaries operating in the same segment of the financial market. At a higher level, there is a combination of universalization and integration, which is manifested in the creation of universal integrated financial groups. During the activity of financial groups, there are structural shifts and changes in their activity, which leads to the emergence of new types of services. The subject of the study is bancassurance groups, which began to be called bancassurance. One of the methods of attracting capital to the banking sector was attempts to merge it with the insurance sector. In turn, insurance companies are also trying to expand the range of their services by adding banking services. For both banks and insurance companies, the main problem is the successful choice of the organizational form of such cooperation. At the same time, it is necessary to take into account the fact that banking activity is regulated by other legislative acts than insurance. The choice of the organizational form of banking and insurance activity should also take into account this aspect of the problem. Currently, the importance of bancassurance has increased significantly. Mutual conduct of banking and insurance businesses optimizes the ratio of supply and demand for services, minimizes risks and transaction costs, and increases customer protection and the degree of their financial literacy. The research methodology is based on general research methods of analysis and synthesis, induction and deduction, observation and abstraction, which are used to systematize the achievements of the theory and practice of forming a consolidated banking and insurance business architecture. Results of the survey showed that interaction between banks and insurance companies increased in the post-crisis period. At a time when the merger of their businesses is actively manifested abroad, in Ukraine this process is limited due to the specifics of the activity, differences in the "rules of the game on the market", and the imperfection of the legal framework.