The Bank Insurance Model(BIM), also known as Bancassurance, is a partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank sales channel in order to sell insurance products.
Both the bank and the insurance company shares the commission.
1. Significant source of income for the Bank.
2. Have low costs as they use the existing infrastructure (branches and systems) that they use for banking.
3. Access to large customer base that the banks have.
4. Banks can often sell insurance at better prices(i.e. higher premiums) than many other channels.