What is Bancassurance?
Bancassurance is a term which means selling of insurance products through banks. Various banks and insurance companies enter into a partnership and the banks then sells the company’s insurance products to its clients. It is a win-win situation for both the parties as the bank earns non-interest income in form of fee amount from the insurance partner in addition to the interest income while the insurance company gains more market penetration and increased customer reach. The bank thus serves as an intermediary which assists the insurance company to reach the end customer with ease and thereby increase its market share.