A bank and an insurance company – competitors or allies? Essay and comments from bank and insurance executives

In this article we present different ways of a bank and an insurance company to act as each other’s competitors and allies from 1980’s to the present. We discuss also trends which have influenced or shall influence the operating environment of financial enterprises. The article has been sent to nine representatives of the top management of Finnish banks and insurance companies for comments. We present their comments as well as our counter comments. The comments reflect the professional background of the respondents. They deepen especially the discussion of the recent regulation of banks and insurance companies. Many comments indicate that the ownership of a product company (most often an insurance company) should be given careful consideration. One reason for that are the increased capital costs associated with the ownership. Another reason is that the new directives require higher transparency and comparability of products, and the tightened competition puts pressure on prices. However, many comments point out that the new directives are not only a threat but also an opportunity