Bancassurance
Insurance
Bancassurance is the term used to describe the sale
of insurance products in a
bank. The word is a combination of "banc" and
"assurance" signifying that both banking and insurance is
provided by the same corporate entity. The usage of the word
picked up as banks and insurance companies merged and banks
sought to provide insurance, especially in markets that have
been liberalised recently. It is a controversial idea, and
many feel it gives banks too great a control over the
financial industry.
In some countries, bancassurance is still largely prohibited, but it was recently legalized in countries such as the United States, when the Glass-Steagall Act was repealed after the passage of the Gramm-Leach-Bliley Act.
Wealth management for High Net Worth and Ultra High Net Worth customers has been pioneered by Lombard International and the function is known as Privatbancassurance.