Bancassurance

Dictionary Says

Definition of 'Bancassurance'

An arrangement in which a bank and an insurance company form a partnership so that the insurance company can sell its products to the bank's client base. 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.
Investopedia Says

Investopedia explains 'Bancassurance'

Bancassurance arrangements are very common in Europe, where the practice has a long history. In the United States, bancassurance was prohibited until the repeal of the Glass Steagall Act in 1999, and has not yet caught on as a practice for most forms of insurance. Bancassurance remains prohibited in a number of other countries; however, the global trend has been toward the liberalization of banking laws. 

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Life Insurance

    A protection ...
  2. Bank

    A financial ...
  3. Retail Banking

    Typical ...
  4. National Average Wage Index - NAWI

    An index ...
  5. 403(b) Plan

    A retirement ...
  6. Financial Intermediary

    An entity that ...
  7. Agent

    1. An individual ...
  8. Guaranteed Investment Contract - GIC

    Insurance ...
  9. Premium

    1. The total ...
  10. Underwriting

    1. The process ...

Articles Of Interest

  1. 20 Investments You Should Know

    To take advantage of all your investing options, you need to know what your choices are. Here we tell you about the diverse features and advantages of 20 different financial instruments.
  2. The Chinese Wall Protects Against Conflicts Of Interest

    After the crash of 1929, this barrier helped define ethical limits, but it did little to prevent fraud.
  3. Compare Local Interest Rates

    Search and compare the best checking and savings rates nationwide from Bankrate.com. Click Here!
  4. Market Capitalization Defined

    Find out the differences between mega-, large-, mid- and small-cap stocks and how each suits different investing styles.
  5. In Small Business, Success Is Spelled With 5 "C"s

    Incorporating these steps will help your business thrive in a competitive market.
  6. Retirement Savings Tips For 35- To 44-Year-Olds

    Learn how the "sandwich generation" can save for retirement while taking care of their kids and parents.
  7. Is Loan Protection Insurance Right For You?

    This coverage can keep you from defaulting on your loans when you're in financial trouble.
  8. Selecting And Managing Insurance Payouts

    Find out which settlement option is right for you before you recieve your funds.
  9. Will Filing An Insurance Claim Raise Your Rates?

    An accident can mean higher insurance costs - even if it wasn't your fault.
  10. Are High-Yield Bonds Too Risky?

    Despite their reputation, the debt securities known as "junk bonds" may actually reduce risk in your portfolio.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center