Bancassurance in its simplest form is the distribution of insurance products through a bank's distribution channels with the objective of maximizing bank's profit.
In concrete terms Bancassurance, which is also known as Allfinanz - describes a package of financial services that can fulfill both banking and insurance needs at the same time. It takes various forms in various countries depending upon the demography, economic and legislative climate of that country. Demographic profile of the country decides the kind of products Bancassurance shall be dealing in with, economic situation will determine the trend in terms of turnover, market share, etc., whereas legislative climate will decide the periphery within which the Bancassurance has to operate.
Source: "Bancassurance: A SWOT Analysis" published in 2000 by Manoj Kumar, ACII, CPCU, ARe, ARM, MBA at http://www.einsuranceprofessional.com/artbuzz.html.