Banks to Buy Into Life Insurance Companies

Some banks in China are buying into life insurance companies. This has also occurred in the UK, the US and other countries. What could this mean to your own life insurance policies if this were to happen in your country? Insurance companies can profit greatly from the bank buy ins but what will it mean to the ordinary policy holder and what could it mean for Canadian life insurance if this were to happen?

What could it mean if banks buy into Canadian life insurance companies?

1. These types of partnerships could mean more money available to policy providers.
2. It could mean better rates on a life insurance policy through a company with a bank as a partner.

What do you think would happen to the life insurance industry if more banks jump into this trend and begin buying into life insurance companies or partnering to open life insurance companies?

Many people are not aware of the fact that banks have long held relationships with insurance companies and vice versa. Insurance companies rely on the investments of banks to help them pay out on policies and also to help maintain the costs of running a life insurance company. Arrangements like this could be a good thing for all involved.

A downside to these types of arrangements is that many people feel they can trust their bank for their financial affairs but the insurance desk of the bank is lacking. These are usually staffed by larger staffing companies and you may not be purchasing your insurance from an expert who knows what is best for you. Ultimately, only you can make the decision about what is right for you but we can all expect to see more bank-insurance partnerships happening in the future.