Bancassurance is considered a modern and complementary distribution channel in Egypt, benefiting all parties: banks, insurance companies, and customers. The market is witnessing growth in total premiums and claim compensations, reinforcing the increasing role of bancassurance within the non-banking financial services system.
Official statistics show that it is experiencing continuous expansion, both in terms of premium volumes and the diversity of products available through various channels such as bank networks. On a practical level, reflecting the expansion of banking channels, a partnership between banks and national insurance companies announced that the total bancassurance premiums achieved through that partnership reached about 11 billion Egyptian pounds over five years since its launch in 2020.
The Origin of the Bancassurance Idea and Its Development in Egypt
The idea of bancassurance began in France during the 1980s, then spread to various markets, including the Egyptian market, where the idea emerged in the late 1990s or early 2000s.
Insurance and Banking
It relies on agreements between the bank and the insurance company, whereby the bank commits to offering insurance products to its clients, while the insurance company manages the risks and coverages.
The Importance of Bancassurance for Banks and Insurance Companies
For Banks: It is considered a means to expand the scope of their financial services, diversify income sources away from traditional interest, increase profits through distribution commissions, in addition to strengthening customer relationships.
For Insurance Companies: It represents an effective channel to reach a wide segment of customers without high marketing costs, which supports the increase in collected premiums.
For Customers: It facilitates obtaining insurance coverage through the same place where they conduct their financial dealings, which enhances the element of trust and security.
