Bancassurance
Bancassurance generally means selling insurance products under the same roof of
a bank. It is a complete and combined financial solution for an individual.
Our Honorable Prime Minister of Peoples Republic of Bangladesh, Sheikh Hasina,
MP has launched the Bancassurance for all of us on 1 March 2024.
In the current Bancassurance system a Bank can have 3 life and 3 non life Insurance partners to sell the insurance services.
An insurance Company can have 3 Banks as bancassurance partners.
Bancassurance had practiced first in France in the 1980s, and spread across different
parts of Europe since, also it has spread its wings in Asia. In India, Bancassurance has started in the year
1999 and now the bancassurance market size reached US$ 92.6 Billion in 2022. Share of Bancassurance channel in 2022 is 55% of the total business. In ASEAN region bancassurance market sources indicate that the distribution share might cover at 50% bancassurance,
30% agents and 20% other channels.
The bancassurance channel can be digital or direct.
In Bangladesh, there are several reasons why bancassurance could play a natural role in the insurance market.
First, banks have a huge network across the country. Second, banks are more socially acceptable and trustworthy
than insurance companies, Third, Banks can secure their loan/ Mortgage. Fourth, Banks can add value to their customers. Fifth,
large number of people can be under the protection of insurance in case of both life and health.