As a response to the changing business environment, the Bank Insurance Model (BIM) and the strategic alliances between bankers and insurers have been increasingly formed in the last decade, especially popular in European countries such as Spain, France, and Austria. BIM, also known as Bancassurance, is the term given to the distri-bution of insurance products through branches or other distribution channels of the banks. Insurers see it as a tool to increase penetration and market share and bankers use it to augment their fee income and to smoothen the volatility of interest income.
Once the banker-insurer alliance is formed, both the bank and insurance company will share the commission. However, in practices, the sharing of the commission is al-ways one of the most challenges for the success of the bancassurance alliance. There is a need from the participants to identify their individual goals and considerations for supporting the decisions in the bargaining process. This research aim to systematically analyze the decision factors considered in the banker-insurer bargaining process from both bankers’ and insurers’ viewpoints. By utilizing Analytic Hierarchy Process (AHP) ,and Delphi Method, experts and senior managers in the bank and insurance in-dustry were interviewed for exploring their implicit decision rules and considerations for the bancassurance bargaining problem. The research results provide a practical reference for developing bargaining strategies and improving business plans.
