Subject Bancassurance is a relatively new area of partnership relations and cross-sell channels. The business tandem of banks and insurers is characterized not only by a new level of customer satisfaction, but also by various risks. Objectives The purpose of the study is to investigate preconditions for and the nature of banking risks in the bancassurance market, to classify them, assess implications, and identify measures to prevent the risks. Methods The paper employs methods of logical and economic analysis. Results I reviewed the current status of the bancassurance market, its key trends, identified bank risk determinants, offered risk classification. On the basis of the classification, I analyzed each type of probability event. Conclusions In addition to the risk of revenue loss and risk of litigation with insurance company, the banking business is exposed to reputational risks. The performed analysis enables to detect systemic problems in relationships between banks and insurers, which may result in a large-scale bankruptcy of insurance organizations, loss of confidence in financial institutions, erosion of credibility of the mega regulator.
Keywords: banking risk, bank exposure, bank insurance, bancassurance, sales channel
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