Four years since Bancassurance was first introduced in Uganda as part of the amendments to the Financials Institutions Act 2014, experts say the concept is gaining ground and is expected to greatly impact Insurance penetration.
Bancassurance is the selling and distribution of insurance products through banks. Commercial Banks are adopting it because selling insurance products gives them a new and lucrative revenue stream without high new setup costs.
On April 13, 2018, the Insurance Regulatory Authority (IRA) of Uganda granted a License to Housing Finance Bank to start selling insurance policies to its customers and the general public. The IRA Acting Chief Executive Officer, Benerd Obel said during the event at the authority that Housing finance Bank had become the 10th out of the 25 banks to acquire the Bancassurance License. Currently, 16 Banks have been licensed to carry out Bancassurance Business.
According to details released by the Insurance Regulatory Authority for the third quarter of 2020, the 20 banks licensed as bancassurance agents, contributed Shs52b out of the Shs818b in gross written premiums.
These commercial banks contributed 6.36 per cent of gross written premiums, earning a total of Shs8.2b in commission from selling both life and general insurance. In general insurance, Housing Finance earned Shs206.8m in commission.
According to Samson Rugambwa, the Manager Bancassurance at Housing Finance Bank, together with Insurance partners, the bank has crafted insurance solutions for various customer segments that aim at reducing future uncertainty and providing peace of mind.
“This is therefore an invitation for all to protect what you love with Housing Finance Bank. Through our distribution channels we are now a one stop center for all your financial needs including insurance.”
With Housing Finance Bank, one can enjoy a variety of Bancassurance solutions such as: Motor Comprehensive Insurance, Home Insurance, Education Insurance, Burglary/Theft Insurance,
Others are; Travel Insurance, Personal Accident Insurance, Workers Compensation Insurance, Marine and Goods in Transit Insurance, Agriculture Insurance, Group Life Insurance and Mortgage protection insurance.
Why should one obtain their insurance from Housing Finance Bank?
With all the benefits that come with it, our customers can; conveniently buy insurance through a trusted intermediary, purchase insurance as they access the banks financial services, find the best insurance covers at the best price, get professional advice on the most suitable type of insurance covers, and have their claims dealt with through the bank to save them the hassle and worry of what can be a difficult and frustrating process.