The Effect of the Gramm-Leach-Bliley Act on the Bancassurance Model in the United States

Open Access
Azmy, Joseph George
Area of Honors:
Actuarial Science
Bachelor of Science
Document Type:
Thesis Supervisors:
  • David Arthur Cather, Thesis Supervisor
  • Ron Gebhardtsbauer, Faculty Reader
  • David Arthur Cather, Honors Advisor
  • bancassurance
  • Gramm-Leach-Bliley Act
I will discuss the Gramm-Leach-Bliley Act and its effect on the bancassurance model in the United States. This legislation, passed in 1999, repealed the Glass-Steagall Act, a Depression-era law that created barriers between various types of financial institutions. The Gramm-Leach-Bliley Act broke down these barriers, and commercial banks, investment banks, and insurers were free to cross over into other financial sectors. This freedom led many to believe that there would be a boom in the use of the bancassurance model, a combination of banking and insurance that had experienced popularity and success in Europe. I will outline the details of the Gramm-Leach-Bliley Act, define and characterize the bancassurance model, describe the expectations for the Act’s effects, depict the actual effects, and explain the reason for the discrepancy between the two.