The Revised Guidelines on Bancassurance Operation in Nigeria: Marketing Implications on Patronage of Insurance Products
This study seeks to assess the marketing implication of the revised operational guidelines on bancassurance referral model in Nigeria particularly in terms of how the model can affect customers’ patronage of Insurance companies. The objectives of the study include; (i) to determine the influence of bancassurance referral on customers’ patronage of insurance products; (ii) to ascertain how customer loyalty moderate the influence of bancassurance referral on customers’ patronage of insurance products; and (iii) to assess how the perceived service quality of the deposit money banks moderate the influence of bancassurance referral on customers’ patronage of the insurance products. Quantitative survey research design was adopted for the study. By gathering primary data from 170 banks’ customers and 68 bancassurance desk officers of insurance companies using structured questionnaire; and using structural equation modelling for testing and analyzing the gathered datasets, findings revealed that bancassurance referral model has significant influence on customers’ patronage of insurance products and both customer loyalty and perceived service quality of the banks significantly moderate the influence of bancassurance referral model on customers’ patronage of the insurance products. It was recommended that insurance companies that want to go into bancassurance relationship with any bank in Nigeria should choose banks characterized by large number of loyal customers and high perceived service quality.
Brealey, R.A., and Myers, C.S. (2003). Principles of Corporate Finance, (7th edition), McGraw-Hill Companies
Casu, B. and Girardone, C. (2004). Financial Conglomeration: Efficiency, Productivity and Strategic Drive, Applied Financial Economics, XIV, 10, 687–96.
CBN, (2017). Revised Guidelines on Bancassurance Referral Model, Central Bank of Nigeria
Chen, H and Hsieh, T (2011). The effect of the atmosphere on consumer perceptions and behaviour responses in chain store supermarkets. African Journal of Business and Management. 5(24), 54-66
Chen, Z., Li, D., Moshirian, F., and Tan, J. (2006). Does Bancassurance Add Value to Banks? Evidence from Mergers and Acquisitions between European Banks and Insurance Companies. University of New South Wales, School of Banking and Finance, Mimeo
Devell, R.F (1991), Scale Development: Theory and Applications, Applied Social Research Method Series. 3rd ed., SAGE: Newbury Park, C.A
Fields, L. P., Fraser, D.R. and Kolari, J.W. (2004). What’s Different about Bancassurance? Evidence of Wealth Gains to Banks and Insurance Companies, Mays Business School, Texas A&M University, Working Paper.
Florido, M.,(2002). Bancassurance in Europe, European Journal of Operational Research, 175, 1285 – 1299.
Fraering, M A. and Minor, M. S (2006). The sense of community: An exploratory study of US consumers of financial services. International Journal of Bank Marketing, 24 (5), 284-306.
Genetay, N. and Molyneux, P. (1998) Bancassurance, London: Palgrave Macmillan.
Hair, J. F., Black, W. C., Babin, B.J and Anderson, R. E (2010). Multivariate data analysis (7th Ed), Upper Saddle River, NJ: Pearson Education Inc.
Igbomirenghian, K (2010), Experts suggest ways to boost Nigerian insurance industry, Editorial Daily Independent Newspaper, 5th January.
Johri, G. (2009), Consumer satisfaction in general insurance industry. A Journal of Risk and Insurance, 4 (6), 66-92.
Jongeneel, O.C.W. (2011). Bancassurance: Stale of Staunch? A Pan- European Country Analysis. Unpublished Msc. Economics & Business Thesis, Erasmus University Rotterdam
Karimian, A (2017). The effect of bancassuarnce on bank productivity and profitability evidence from banking industry in Iran,. American Journal of Economics, 7 (4), 177-185
Karunagaran, A.(2006). Bancassurance; A feasible Study for Banks in India? Journal of Economics and Sustainable Development, 4 (2), 24 -34.
Kiragu, M. (2014). Assessment of Challenges Facing Insurance Companies in Building Competitive Advantage in Kenya: A survey of Insurance Firms. Unpublished Executive MBA Project, JKUAT.
Kotler, P., Bowen, J. T and Maken, J.C (2010). Marketing for Hospitality and Tourism (6th Ed). Upper Saddle River New Jersey: Pearson Education Inc.
Lei, P.W and Wu, Q (2007). Introduction to structural equation modelling: issues and practical considerations. A NCME Instructional Module, 33-44.
Lovelin, P.A, and Sreedevi, V. (2014). Preference of Bancassurance. Journal of Business and Management, 16 (1), 08-13.
Lovelock, C and Writz, J (2014). Services Marketing: People Technology and Strategy. 8th ed. Boston Pearson Publication.
Mwangi, J.W. (2010). An Assessment of the Determinants of Growth of Bancassurance in Kenya. Unpublished MBA project, University of Nairobi.
NAICOM, (2017). Bancassurance Referral Operational Guidelines. National Insurance Commission
Nebo, G.N and Okolo, V.O (2014). Effects of the Strategies for customer satisfaction on the performance of insurance firms in Nigeria. IOSR Journal of Business and Management¸18 (5), 78-90
Nunnally, J. C., and Bernstein, I. H. (1994). Psychometric theory (3rd ed.). New York: McGraw-
Hill. In Iacobucci, D., and Duhochek, A. (2003). Advancing Alpha: Measuring Reliability with Confidence. Journal of Consumer Psychology, 13(4), 478 – 487
Parasuraman, A.; Zeithal, V and Berry, L.L (1985). A Conceptual Model of Sevrice Quality and its Implications for Future. Research Journal of Markeitng 49 (6), 116-143.
Ricci O. (2012). Studying the Bancassurance Phenomenon: A Literature Review. In: Fiordelisi F., Ricci O. (eds) Bancassurance in Europe. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, London
Tseng, W. T., Dornye, Z and Schmitt, N (2006). A new approach to assessing strategic learning: the case of self-regulation in vocabulary acquisition. Journal of Applied Linguistics, 27 (6), 78-102.
Wang, C.C, Wang, l..C and Yang, Y, J (2005). Innovativeness and mobile phone replacement: an empirical study in Taiwan in Ha, Y. U., Yi, Y and Duluth, M.N edited. AP Asia Pacific Advances in Consumer Research. Association of Consumer Research, 6 (9) 280-293.
Waweru, T.N. (2014). The Effect of Bancassurance on the Financial Performance of Commercial Banks in Kenya. (Unpublished), Master Thesis submitted to School of Business, University of Nairobi .
Copyright (c) 2019 Emma Chukwuemeka, Nebo Gerald Nwora
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain the copyright of their manuscripts, and all Open Access articles are distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided that the original work is properly cited.
SOCIALSCI JOURNAL allow the author(s) to retain publishing rights without restrictions.