Parallel shifts

The final direction and impact of the commingling of financial services remains uncertain. Potential issues, such as the ability of banks to underwrite insurance, are dependent on an uncertain regulatory future. What does remain certain, however, is that both banks and insurers face new opportunities to enter areas or target consumer groups that traditionally have been unavailable. Datamonitor projects that banks and insurers will operate in an unusual combination of competition and alliance. Many insurers will use the bank-branch system as an alternative-distribution source. It is expected that larger banks will attempt through regulation to gain control of the underwriting process and the agencies to better control their operation.