In search for the best alliance structure between banks and insurance companies

In search for the best alliance structure between banks and insurance companies Banks and insurance companies have widely recognized the need for mutual co-operation in the form of cross-sector alliances. In these articles we study the problem of finding the most suitable alliance structure between banks and insurance companies from the points of view of executive management, supervisory authorities and customers. We also study possible compromise alliance models for several decision maker groups and a group’s understanding of other groups’ decisions. In the first article we study alliances between banks and insurance companies from the perspective of the top management. We define six different structural models for financial alliances. We also characterize nine criteria according to which the previously defined models are to be compared to achieve the most attractive alliance model. Thus, we obtain a multi-criteria decision problem. In the second article we solve the problem of searching the most preferred alliance model by using an expert panel and the Analytic Hierarchy Process (AHP). The experts are representatives of the top management of Finnish banks and insurance companies. Based on the evaluations of the panel, the alternatives Financial Conglomerate and Cross-Selling Agreement, no Overlapping Service Channels are most preferred. Which one is chosen, depends on how risk is emphasized. In the third article we look for the best alliance compromise structure between the executives and the bank and insurance supervisory authorities in Finland. First, we study alternative alliance structures from the point of view of supervisors. We introduce eight criteria for the evaluation of the alternative alliance structures. The evaluation is carried out by an expert panel consisting of supervisory authorities. The alliance models based on plain cross-selling agreements receive the highest ranks. The financial conglomerate might be an acceptable compromise alternative for the supervisory authorities as well on certain conditions. In the fourth article we study alternative alliance structures from the point of view of Finnish customer representatives. Seven criteria are introduced for the evaluation of the models. The evaluation is carried out by an expert panel consisting of customer representatives. The alliance models based on cross-selling agreements receive the highest ranks. The customer representatives then evaluate the models using the most important executive and supervisory criteria from our earlier studies. They also invent executive and supervisory criteria. It is more difficult for them to assume supervisory than executive thinking. Finally, we compare the criteria and the model priorities of this and our earlier articles. The best compromise model from all three points of view could be the financial conglomerate on certain condition