Banks already meet customers when they open accounts or apply for loans. Bancassurance is the distribution of insurance products through a bank’s branch network, website, or relationship managers. The bank acts as intermediary, while an insurance company carries the risk.

Life insurance, credit-related coverages, and simple property products are the most common offerings. The model leverages the bank’s customer data and trust relationship to lower acquisition costs. Regulatory rules usually require clear separation of banking and insurance responsibilities and transparent disclosure of the insurer’s identity.

Success depends on staff training, product simplicity, and alignment of incentives. Some arrangements involve the bank owning an insurance subsidiary; others are pure distribution alliances. Bancassurance has grown rapidly in markets where branch networks remain dense and customers prefer one-stop financial services.

• Sale of insurance through banking channels
• Combines bank distribution with insurer risk-bearing
• Common for life and credit-related products
• Requires regulatory separation and disclosure