Bancassurance, definition

Bancassurance is a neologism derived from the words bank and insurance. It refers to the fact that a bank markets insurance contracts in addition to its own banking services.

Bancassurance means the creation or addition of an insurance company by a banking institution, in order to offer products designed by the group.

In practical terms, banks and insurance companies present their offers in the form of packages, combining banking and insurance products in a single contract.

This solution is part of a financial globalization that is pushing market players to find new growth drivers and sources of wealth creation.

The difference between bancassurance and assurbanking

It's essential to make a distinction between bancassurance and assurbanking. In bancassurance, a bank distributes insurance products, while in assurbanking, an insurer develops banking services.

Historically, insurers' banking subsidiaries - known as “assurbanks”- have not enjoyed the same success as bancassurance. In view of their modest market share and the major difficulties they have faced - including the bankruptcy of several companies during the 2008 financial crisis - the experience of assurbankers, with the exception of Belgian and Dutch establishments, has not been conclusive worldwide.