Bancassurance

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Related to bancassurers: bankassurer

Bancassurance

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.
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However, their study focused on bancassurers only and still leaves the question open for assurbanks, the insurers who are doing banking business.
Teather & Greenwood analyst Mr Tim Young agrees, pointing out that the most successful European bancassurers operate in France and Spain, where the life policies being sold are more like savings accounts than the complicated pensions sold in Britain.