The Bancassurance or insurance banking model is a joint venture (Joint Venture) by which the bank offers its clients the products of an insurer . This agreement seeks the complementation of the participating financial entities to achieve greater profits.

On the one hand, the bank obtains a percentage of profit from the policies sold. Meanwhile, the insurance company can expand its operations without hiring more staff or brokers .

It should be noted that this strategy allows brokers to maintain reduced commercial departments. Thus, they are able to focus more on the processing and administration of their services.

This business model is strongly implemented in Spain, France, Austria and the United Kingdom.

Bancassurance implementation

For the implementation of bancassurance, some bank employees receive training from the insurance company. That way, they are instructed on the characteristics of the policies they are going to place.

In addition, the bank must report regularly on sales achieved from the strategic alliance.

Bancassurance ban

There is a ban on bancassurance in some countries. This, under the argument that banks can gain a lot of market share, and perhaps dominance, within the financial sector.

For example, in China, banks have recently been allowed to market policies . Consequently, some of the world’s largest insurers have seen a high expansion of their sales in the Asian giant.


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