Why are bancassurance and bank-led distribution increasingly digital?

Banks leverage customer trust and data to distribute insurance products digitally. Integration reduces friction in quoting, documentation, and underwriting. Digital bancassurance increases attachment rates and improves renewals through reminders and analytics. The model aligns incentives between banks and insurers via commission sharing or performance-based structures. Studies highlight growth in direct digital sales while maintaining the role of relationship managers for complex products (Deloitte, 2021; McKinsey, 2022).