What is Bancassurance?

Bancassurance is a French term referring to the selling of insurance through a bank’s established distribution channels. In simple words, we can say that Banks tie up with insurance companies and sell insurance products.
Bancassurance is the selling of insurance and banking products through the same channel, most commonly through bank branches.
Bancassurance concept originated in France and soon became a success story even in other countries of Europe. I
In India a number of insurers have already tied up with banks and some banks have already flagged off bancassurance through select products.
The bank and the insurance company share the commission.
Insurance policies are processed and administered by the insurance company.
This partnership arrangement can be profitable for both companies.
Banks can earn additional revenue by selling the insurance products, while insurance companies are able to expand their customer base without having to expand their sales forces or pay commissions to insurance agents or brokers.