Performance and Risks in the European Economy
The Financial Market of the Cross and
Up-Selling Insurers from Romania
, Bogdan Constantin Andronic
, Cornelia Elena Tureac
Abstract: The biggest threat for the worldwide financial s ystem is the recession at global level, which would
have a major impact on the insur ance industry. The differences between the results of European companies
during the crisis, had a close connection with the aggressive or defensive investment strategies. Although the
bank assurance agreements exist and they are developing fur ther, the partnerships of this type didn’t have the
expected suc cess in Romania, so far. Once with the market penetration from Romania of some insurers of
European size, more specialized companies have launched bank assurance partnerships with banks, especially
in the view of distribution of life insurances, and more recently, of the promoting the package of current
account, products of savings – credit in the housing domain, pension funds, credits for small companies,
mortgages and the one of personal needs. The s uccess of this type of sale is still to come and put in doubt, at
this point, the efficiency of promoting the banking products by insurers.
Keywords: insurers; banks; bank assurance partnerships; cross-selling; up-selling
JEL Classification: G2
The overall economy and industry of insurances if found in a relation of mutual influence,
bidirectional, a negative or positive evolution of one of them, having effect on the other (Prof. Fuat
ERDAL, Director, The Insurance Training Center, IMC – The International Insurance Mediation
Conference, Istanbul, 2010). An increases with 1% of the subscription made by the insurance
companies has as effect, according to the studies of Prof Erdal, a GDP growth of 0,5%. Also, an
additional of 1% in t he GDP evolution is reflected in an increase of 1, 5 – 2,5% of subscription of the
The concept of bank assurance marked a change of course within the financial sector, the bank
assurance services becoming a tool increasingly used in the distribution of financial protection through
insurance. According to a study
, made in 2008 by Swiss Re, Europe is present at the highest level of
penetration of the bank assurance segment, at the opposite pole being the North American continent,
as a result of more restrictive regulations in the field.
The development of the Romanian banking system fits the globalization trend that has dominated the
world economy in recent decades, especially as the financial services are one of the areas with the
most intense expression of this phenomenon.
Senior Lect urer, PhD, D anubius University of Galati, Faculty of E conomic Sciences, Romania, Address: 3 Galati Blvd,
Galati, Romania, tel: +40372 361 102, fax: +40372 361 290, Corresponding author: email@example.com.
Professor, PhD, Danubius University of Galati, Faculty of Economic Sc iences, Romania, Address: 3 Galati Bl vd, Galati,
Romania, tel: +40372 361 102, fax: +40372 361 290, e-mail: firstname.lastname@example.org.
Associate Professor, PhD, Danubius University of Galati, Faculty of Economic Sciences, Romania, Address: 3 Galati Blvd,
Galati, Romania, tel: +40372 361 102, fax: +40372 361 290, e-mail: email@example.com
Media XPrimm – FIAR, 2009.