Kenya joins Uganda, which has also enacted laws to streamline the operations of bancassurance to drive penetration of insurance. I&M Bancassurance offers both General and Life insurance. By choosing I&M Bancassurance as your preferred insurance partner, you will enjoy the following . Banking institutions and insurance companies have found banc assurance to be an attractive and profitable complement to their existing activities. The Kenyan.

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Bancassurance business has become a very key pillar in terms of our income diversification strategy.

Cookies help us to provide you with a positive experience. In my opinion the three key areas that I believe banks need to focus on are: Leave a Reply Cancel reply Your email address will not be published.

Banc assurance has been identified as one of the distribution channels through which insurance penetration can be enhanced. This site uses cookies. Beyond Operational Efficiency July 25, Your email address will not be published.

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The research design used in this study was cross sectional descriptive survey of a defined population as it involved a study of all the eighteen insurance companies which use banc assurance as a channel of distribution. Moreover, traditional intermediaries still have a pivotal role to play especially when it comes to servicing complex insurance products.

Bancassurance in Kenya: Current State and Future Perspectives to 2020

Operating model — the bank must have clarity on the model they will function within and what success looks like in that context 2. Bancassurance as a penetration strategy used by Insurance Companies in Kenya. Agents also see bancassurance as eknya main reason why insurers are reviewing commissions and customers are getting a raw deal, with the banks not giving them a choice on which policy to buy and where to do it.

Study findings show that banc assurance has increased insurance uptake by increasing its distribution channels, attracting new customers while retaining the old and winning the customers trust unlike the traditional agents since most customers trust banks and they frequently visit.

One of the most significant changes in the financial services sector over the past few years has been the appearance and development of banc assurance. Author Ombonya, Erick O. It does seem these initial fears were justified as current statistics reveal a disruptive shift in the insurance landscape since the entry of bancassurance.


Please enter a user name. Manjang was speaking during the signing of a bancassurance partnership between the bank and non-financial service firm Sanlam Kenya, where they intend to offer general insurance products such as motor private cover and domestic insurance cover. Road Assistance in Russia. Currently, insurance penetration in Kenya stands at 2.

Since the agent and broker led channels have failed to achieve significant penetration of insurance; there is need for the insurance industry players to adopt new and more efficient channels.

In many countries around the world, India being a great example, the distribution of insurance by banks using their branch network has proven to be a very effective channel of increasing insurance penetration.

Our penetration is at 2. Bancassurance…the new opportunity; Growth, Differentiation and Disruption. The Insurance Regulatory Authority IRA has had to step in following numerous complaints from agents and are coming up with guidelines to help regulate bancassurance business.

Currently, there were 26 bancassurance insurance agents in upon from 19 the bancaesurance year, according to the Annual Insurance Report. Metadata Show full item record.

Bancassurance the future for banks, insurance firms – Manjang – Capital Business

Standard Chartered has been in the bancaassurance industry for two years following its entry into the sector through its subsidiary Standard Chartered Insurance Agency Limited. Banking institutions and insurance companies have found banc assurance to be an attractive and profitable complement to their existing activities.

The Kenyan insurance industry has been relying heavily on agents and brokers to sell insurance products. However, brokers seemed to be more for the idea than agents believing that the entry of banks into the insurance sector will ,enya retail outlets and raise the penetration of insurance products countrywide.

Insurance in Kenya is mainly sourced through agents, brokers or directly by insurance companies with agents taking the lead by Current State and Future Perspectives to The research then focuses specifically on bancassurance bancassurabce commentary in several areas: The draft guidelines, though still in the pipeline, bancassurance with stricter rules for the banks with such clauses as: There is still considerable room in the market for the professional intermediary. Banks have limited insurance business experience and are bancassurnce able to handle straightforward products that are simple to explain and service.


Your browser does not support iframes. And even if bancassurance ends up with a commanding market share, the portion for the traditional intermediaries will still be considerably larger compared to the cumulative business they previously managed. All personal information is collected and used in accordance with our privacy statement.

Consequently, it makes more sense to put aside the current rivalry and focus on harnessing the collective experience, strategic creativity and innovation of insurers, banks, brokers and agents towards solving our persistent penetration challenge.

Bancassurance Not the End of Insurance Agencies

Standard Chartered Bank CEO Lamin Manjang says the companies will bancqssurance to work together to offer their services driven by the need of a one-stop shop by the widening middle-class. This research can be used in one or more of the following ways: For further information about this research, please access the table of contents and series prospectus by clicking on the corresponding links above, or e-mail info finaccord.

By definition, bancassurance is simply the offering of insurance products by banks, and as per banking regulations, banks can only act as agents of insurance companies and not underwriters or providers of insurance. Please check box if you do not wish to receive these keenya. Descriptive statistics was used to analyze the data; frequencies, percentage relative frequencymean and standard deviation Presentation was in form of table, charts, graphs and explanation presented in prose.

Finaccord is also able to undertake bespoke research and consulting assignments about this and other subjects.

Stay informed with Finaccord insights Sign up to receive offers, news and information via email. All prospects shall be allowed to decide out of their own volition, which insurance product they wish to buy and from which insurer.