Many consumers hear the following phrase when visiting a bank:
"We can also offer you insurance for your loan or your car."
This is called Bancassurance.
Before you commit to any insurance offered by a bank, read this article. It might save you time, money, and future headaches.
What is bancassurance?
Bancassurance is the distribution of insurance products through bank branches.
Banks partner with one specific insurance company and promote policies such as life and health insurance, pension and investment plans, property insurance (linked to housing or business loans), and vehicle insurance.
The main selling point? Convenience.
You can sign up for insurance where your banking file already exists — in just five minutes.
But that convenience comes at a price.
Why you should NOT buy insurance through banks
Lack of Personalized Service
A bank employee is not a licensed insurance advisor.
They don’t conduct a needs analysis, provide in-depth guidance, or offer expertise in finding the right package for your situation.
They offer what they have, not necessarily what you need.
Limited insurance options or comparisons
Banks work with only one insurance provider. That means no ability to compare plans or prices.
In contrast, an independent broker compares offers from multiple companies to find the best value, whether it's in terms of coverage or cost.
"Forced" insurance policies
Were you told that insurance is mandatory for your mortgage?
In reality, only fire coverage is required, and you’re not obligated to buy an overpriced package from the bank.
You have every right to choose any insurer you prefer. If someone tells you otherwise, it’s misleading!
No post-sale support
If you have a problem or need clarification later, you won’t have a dedicated advisor, only a call center and non-specialized staff.
Overpriced policies with limited coverage
Bank insurance packages are often preset, with no flexibility or options.
As a result, you might pay more for less coverage.
No pre-insurance risk assessment (Underwriting)
This is one of the biggest risks in Bancassurance and possibly the most important.
The client’s risk factors are often not evaluated before issuing a policy. A general form is usually filled by a bank clerk, without technical review or documentation (e.g., for fire insurance).
In health insurance cases without prior medical assessment, clients might not be informed that they must declare pre-existing conditions.
So, when a claim arises, the insurer can deny coverage or even cancel the policy.
This means the client in the most critical moment discovers they're not covered, and may even struggle to get insured elsewhere.
Why Choose an Independent Insurance Broker?
- Performs proper underwriting.
- Compares packages and finds the best fit for you.
- Reviews all data before issuing a policy.
- Prevents claim rejections from technical discrepancies.
- Explains in full what is covered and what is not.
A social dilemma you may not have considered:
When you buy insurance through a bank:
- You get a package, not personalized service.
- Commission goes to a faceless system, not your community.
- You support a billion-euro corporation.
When you choose an independent broker:
- You build a trusting relationship with a real person.
- You receive consulting, not just a sales pitch.
- You support local business and entrepreneurship.
- You help a local professional earn a living.
Conclusion
Banks promote what benefits them, not necessarily what benefits you.
Before choosing your insurance, consult an independent insurance advisor.
At Prestige Insurance Agency, we’re here to:
Analyze your unique needs.
Compare offers from leading insurance companies.
Offer you the best cost-to-coverage policy.
Contact us today for a free quote with no obligation!
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