The Degree of Influence of the Banking Sector on the Insurance Market

Nowadays connection of banks and insurance companies are in the top of the most debatable themes. There are no only one true opinion about consequences of this absorbing tendency for the economy in general and usual consumers. The main idea of this work is to show that banks stop the development of independent insurance sector and it is tend to be oligopoly or almost monopoly sector that lead to many problems first for consumers: rising of price, misseling and other existing “tricks” of banks. An overview of current market situation, several calculation and forecasting of entropy indexes for the near future show that this point of view exists. The results are that the biggest insurance companies are subsidiary part of banks (consolidation trend) and market now tends to be oligopoly with several big companies. This article is empirical work, based on theoretical and practical analysis of market.