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Term bancassurance originates from the France. In a broad meaning it is used to describe the connection between the bank and the insurance company. As a result of such connection the bank and insurance company groups appear. Bancassurance is a situation in which the insurance products are being sold by a bank, by the same channel as a traditional bank's products.

Bancassurance can have many positive effects on the bank. First of all, it can be a new and very successful source of the capital. Then, the risk of selling products is divided between the bank and the insurance company. Finally, the image of the bank can be improved by creating the vision of the innovative, competitive and client-oriented bank.

Types of connection between the bank and the insurance company

There can be many different types of connection between the bank and the insurance company as below:

  • bank as the owner of the insurance company - particular bank owns majority stock in the insurance company (could be achieved by the merger or acquisition),
  • joint venture,
  • bank is creating its own insurance company (bank's subsidiary),
  • cross-selling - bank is selling insurance products together with the traditional bank's products within one package,
  • cooperation agreement.

Popular products

The most popular products offered in the bancassurance are:

  • financial advisory connected with the insurance products,
  • life assurance,
  • pension insurance,
  • property insurance,
  • credit card insurance,
  • factoring transaction insurance,
  • leasing transaction insurance,
  • credit insurance.

See also:


  • Benoist, G. (2002). Bancassurance: The new challenges. The Geneva Papers on Risk and Insurance. Issues and Practice, 27(3), 295-303.
  • Davis, S. I. (2007). Bancassurance: the lessons of global experience in banking and insurance collaboration. VRL KnowledgeBank.
  • Flur, D. K., Huston, D., & Lowie, L. Y. (1997). Bancassurance. The McKinsey Quarterly, (3), 126-133.
  • Paige Fields, L., Fraser, D. R., & Kolari, J. W. (2007). Is bancassurance a viable model for financial firms?. Journal of Risk and Insurance, 74(4), 777-794.

Author: Aleksandra Nowak