Bancassurance refers to the sale of insurance products through banks. It encompasses various distribution structures including banks owning insurance companies, corporate joint ventures between banks and insurers, and insurers selling products to bank customers under distribution agreements. Common bancassurance models include leveraged insurance distribution where the insurer leads or leveraged bank distribution where the bank leads. Joint ventures bring together a large bank and insurer to develop a powerful distribution model. Banks contribute low-cost distribution channels and customer insights while insurers provide product and underwriting expertise. For bancassurance to succeed in a market requires a supportive regulatory regime, government fiscal policies, simple products aligned with banking, and weak alternative distribution channels.

1. AN INTRODUCTION TO
BANCASSURANCE
PRESENTED BY
Aregbesola Soladoye

2. 1. About Bancassurance
A French term for selling Insurance by Banks
The Term
The term Bancassurance encompasses a wide range of
distribution structures like:
a) Banks owing Insurance Companies outright
b) Banks and Insurance companies in corporate joint venture.
c) Insurers selling their products to customers of banks under
distribution agreements

3. Definitions of Bancassurance
1) Mckinsey:
Bancassurance refers to the provision of
Insurance by Banks
2) Sigma
Bancassurance is defined as a strategy adopted
by Banks or Insurance companies aiming to
operate in the financial market in a more or less
integrated manner.

4. 2. STEPS TO A BANCASSURANCE START -UP

5. 3. BANCASSURANCE MODELS
A) Leveraged Insurance Distribution
The Insurance company would take the lead while several Banks
provide access to middle market leads
B) Leveraged Bank Distribution
The Bank takes the lead while different Insurance companies
supply products for its Bancassurance operations
C) Joint Venture
This is a partnership that brings together a large Bank
with a well developed customer database together with a
large Insurer with strong Product to develop a powerful
distribution model

6. 4. WHAT BANKS AND INSURERS BRING INTO
BANCASSURANCE
BANKS:
a) Banks have experience in managing low cost
distribution channels
b) Banks have recognised name and reputation in the
market
c) Banks have an understanding of the middle market
INSURERS:
a) They have huge Product and Underwriting
experience.
b) The Insurer is also an expert in Investment
management.

7. 5. DRIVERS OF BANCASSURANCE IN A MARKET
i. Regulatory regime: A supportive regulatory
regime is highly important for the success of
Bancassurance
ii. Fiscal laws by government of the Country
iii. Simple Products with affinity to Bank
Products
iv. Strength of alternative Channels of
Distribution

8. 6. BANCASSURANCE AROUND THE WORLD

9. 7. BANCASSURANCE PENETRTATION AROUND
THE WORLD

10. 8. CONCLUSION
We can conclude that Bancassurance is a cost
effective means of reaching the Insurance target
market
Also we can conclude that Bancassurance
provides a massive amount of leads/prospects
than other Insurance distribution Channels
END