According to the Insurance Regulatory Authority of Uganda (IRA), the system, dubbed Bancassurance, recorded a 54 percent growth dominated in the second quarter (April to June 2021), from the previous three months ended March.
More Ugandans have embraced the insurance platform where one can carry out insurance transactions through a bank branch of their choice.
According to the Insurance Regulatory Authority of Uganda (IRA), the system, dubbed Bancassurance, recorded a 54 percent growth dominated in the second quarter (April to June 2021), from the previous three months that ended in March.
Bancassurance was introduced in Uganda by the Financial Institutions (Amendment) Act 2016 alongside Islamic Banking and Agent Banking, to increase access to insurance services for Ugandans. However, its full-year of implementation was 2018/2019, allowing the customer to buy insurance products through any bank licensed by the IRA.
According to IRA, the insurance industry generally registered good growth in the first six months of 2021 on account of improved product uptake and interest, generating a total of 600 billion shillings in gross premiums.
In the quarterly performance, bancassurance accounted for 8.2 percent of the industry’s total business for the first six months of 2021, up from the 5 percent for the same period in the previous year. Four banks; Stanbic, Absa, Centenary and post bank lead the share of the business, accounting for a combined 66%.
In 2020, the bancassurance sector produced 32 billion shillings for the whole year, compared to 49.3 billion in the first half of 2021 which is 54.24 percent higher % growth, according to the industry report published by the regulator.
Stanbic Bank also dominated the bancassurance business for Non-life (General insurance) product- lines generating 3.5 Billion Shillings which is equivalent to 28% of total industry volumes.
Singh Dogo, the Stanbic Bank Uganda’s Head of Bancassurance said that the bank’s good performance in the second quarter was driven by growth in general insurance and credit life business as well as short-term insurance covers for clients.
“These are stable, and we project that they will continue to grow on account of their unique positioning to address customer coverage needs coupled with our assured fast claims service,” Dogo said.
Currently, 20 commercial banks out of 25 are carrying out bancassurance.The banks reported most business activity from fire and motor insurance, which attracted premiums worth 926 million and 748 million shillings respectively over the second quarter, out of a total of 1.89 billion shillings for Non-life insurance.The banks […]