The case for bancassurance in Slovenia

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Integration of banks and insurance companies, sometimes called bancassurance, has grown to be very popular in Slovenia in recent years, especially in conjunction with the forthcoming privatisation of financial institutions where the creation of financial conglomerates is being favoured. However, empirical evidence does not show strong support for amalgamating banking and insurance companies, a situation further confirmed by developments in the US and most recently in Switzerland. There is some indication that the support for an integrated bancassurance model in Slovenia is to a certain extent politically motivated and therefore has no compelling case.