Bancassurance is a business model that combines banking products and insurance sales through the same financial institution.
Under this arrangement, a bank may distribute insurance policies to its customers, often through branches, websites, relationship managers, or referrals. The insurer supplies the insurance product, while the bank provides access to its customer base and distribution network.
The model became especially prominent in parts of Europe and later spread through other markets. It can make insurance easier to purchase because customers already have a relationship with the bank handling their deposits, loans, or payments.
Bancassurance does not mean that a bank automatically becomes the insurer. In many arrangements, the bank acts as a distributor or intermediary and partners with a separate insurance company. Rules concerning licensing, disclosures, and sales practices vary by country.