INSTITUTIONAL AND STRUCTURAL FACTORS OF BANKING–INSURANCE INTEGRATION DEVELOPMENT IN THE NON-LIFE SECTOR
Abstract
The article presents a comprehensive theoretical and applied study of the institutional and structural factors influencing the development of bank–insurance integration in the non-life sector of the national financial market. It is substantiated that integration processes between banks and insurance companies represent a key element of the modern architecture of the financial system, as they generate synergistic effects in risk redistribution, enhance asset profitability, and strengthen trust in financial services. The conceptual and categorical framework of integration within the context of institutional transformations in the financial sector has been refined, while the role of non-life insurance in ensuring macro-financial stability has been determined. Based on analytical data from the OECD, IMF, EIOPA, McKinsey, and BCG, it is established that over 30% of non-life insurance products in EU countries are distributed through bancassurance channels, whereas in Ukraine this figure remains at about 8–10%, indicating a substantial potential for integration growth. The study shows that the key barriers include regulatory asymmetry between Basel III and Solvency II standards, low capitalization of domestic insurers, insufficient standardization of corporate governance, and limited digital interoperability between banking and insurance infrastructures. It is determined that the formation of an effective model of bank–insurance interaction requires stronger institutional alignment, harmonization of tax incentives, development of risk-based approaches, and implementation of unified compliance control standards. A systemic approach to assessing the effectiveness of integration processes is proposed, combining indicators of financial stability, innovation, and client orientation. The practical significance of the obtained results lies in the possibility of applying them to improve regulatory policy, enhance the financial resilience of banking and insurance institutions, and foster a competitive financial market in Ukraine under conditions of global economic uncertainty. The scientific novelty of the research lies in deepening the theoretical understanding of integration mechanisms between the banking and insurance sectors, taking into account the impact of digital technologies. The proposed approaches form conceptual foundations for developing state financial integration policy and stimulating innovations in the non-life insurance segment.
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