what is bancassurance

Bancassurance is a fancy way of saying that banks are now in the insurance business. It’s like banks are saying, “Hey, why should you go to a separate insurance company for your policies when you can get it all in one place? We can give it to you!” Sure, it’s convenient, but do you really want your bank also handling your insurance needs? I mean, what are they going to do, offer you a financial cushion in the event of a claim? Probably not. Here’s a fun fact: according to a 2017 report, bancassurance accounted for over 20% of total global insurance premiums. So, with all the money being made, it’s no wonder banks are trying to get into this business. Still, there are some drawbacks to bancassurance. For example, when a bank handles both your financial and insurance needs, they may not be providing you with the best policy. They could be using the same policy they’re offering everyone else, which may not be the best option for your needs. So, while bancassurance may be convenient, it’s important to make sure you’re getting the best deal for your insurance needs.