Insurance provided by a
bank. For example, a bank could offer
life insurance in addition to its
savings,
loan, and
investment services. Proponents argue that bancassurance can streamline internal and government regulations. For example, a bank offering a
mortgage may require
borrowers to
buy homeowners insurance; if bancassurance is available, the borrower could purchase a policy directly from the bank without needing to shop around. However, bancassurance is somewhat controversial; critics contend that allowing banks to
sell insurance gives them too much control over the financial services sector. As a result, some countries prohibit it. The United States has allowed it since the passage of the
Gramm-Leach-Bliley Act.