Internal controls are a new audit to ensure that processes are in compliance with the corresponding regulations. Distribution agreements must be written, signed and enforced. The compensation process must be documented and implemented. Banks should conduct internal audits of their subsidiaries and insurance companies should monitor their internal bank-based distribution channels. It is therefore important to describe the different processes (trade, management, accounting, etc.) in a process repository to enable the identification of all stakeholders at each stage and to monitor the proper implementation of these processes. The first default of an insurance policyholder is designated as the first unpaid premium. Description: Each payment of the premium gives you a receipt indicating the next due date of payment of the premium. If the premium is not paid, that date becomes the date of the first unpaid premium. See also: New Business Premium, Return, Annuity, Insurable Interest, Insurable Insurability That is to say that great cultural differences are found between insurers and banks and do not facilitate mutual understanding of each other`s business model.
That`s why it`s important for the insurance company to control insurance activities. The regulator understands this tension and supports the clarification of roles and responsibilities. Responsibility for all insurance operations is entrusted to the insurer, including bank delegates as marketing, distribution, advertising, customer communication, etc. BIM differs from the traditional or traditional insurance model (TIM), as TIM insurance companies generally have larger insurance distribution teams and generally work with brokers and external agents. Another approach, the Hybrid Insurance Model (HIM), is a mixture of BIM and TIM. HIM insurance companies can have a commercial agent, hire brokers and agents and partner with a bank. BIM is very popular in European countries such as Spain, France and Austria. The business model tends to affect all aspects of bancassurance activity, including corporate structure, sales and marketing, product design and sales compensation. In most countries, bancassurance tends to see a gradual evolution of the products offered, from protection operations that are closely linked to bank loans, general savings operations and, finally, to a wider range of protection products.