Why Insurance companies are going global
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Why Insurance Companies are going Global ?
A. Increasing Competition: Integration of Financial Services
The sharp demarcation that has long existed in the United States between insurers and
banks is beginning to erode. Both sectors have moved into the marketing of retirement and investment annuity products. National banks are now permitted to sell annuities. Increased competition between banks and insurers is forcing changes in insurance distribution systems as insurers seek more efficient models in order to compete more effectively. In some instances insurers are underwriting products for bank sales, in other cases they are seeking their own more streamlined distribution systems. This restructuring is likely to increase cost pressure on insurers relying on agents for product distribution and could limit growth opportunities for insurance agents. Consumers should benefit as a result of the more efficient distribution systems.
B...