First bancassurance is a department inside a bank. The department sole work is to use the bank as channel of reaching out to the vast network of customers that banks have and sell them insurance. This has been practice in other countries in Europe and Asia. Below is an excerpt from a paper I was writing on bancassurance, I hope its helpful my friend.
The popularity of banc assurance department has been gaining momentum in Kenya in the recent years. Equity Bank, Kenya’s largest bank by branch network, launched its banc assurance in 2006 and has been running with it for a decade now.
Kenya Commercial Bank launched its own agency in April 2015 and more and more banks have been following suit. Banc assurance has become a strategic business unit for banks as they seek to diversify revenue streams and remain relevant to the market.
Banks are also interested in becoming one stop shop for financial services hence the need to explore every single avenue on locking in customers. Other factors leading to banc assurance include increasing market share, supplementing core business and customers getting financial services under one roof.
Banc assurance by definition is the selling of insurance products through banks established distribution channels. Though others have had to define it to be more than just that.
Banc assurance is the normal insurance with more powerful distribution channel that has strong affinity with its private and business customers. Studies have been conducted in Kenya on the penetration of insurance. Banc assurance has had positive influence on the growth of insurance sector in the country.
A study on the effect of ban assurance on financial performance in the financial industry found that banc assurance has increased insurance uptake by increasing its distribution channels, attracting new customers while retaining the old and winning the customers trust unlike the traditional agents since most customers trust banks and they frequently visit.
You can find more reading about insurance in Kenya here.