Stanbic bank is set to offer a new service to the market, bancassurance. The biggest commercial bank in the country will now provide insurance products, a first.
Patrick Mweheire, the chief executive of Stanbic, received the license from Ibrahim Lubega Kaddunabbi, the chief executive officer of the Insurance Regulatory Authority, and promised to contribute to the deepening of covering risks in the country.
“The introduction of bancassurance will increase access to insurance services amongst Ugandans in different parts of the country through the vast bank branch network,” Kaddunabbi said while handing over the license at a ceremony held at the IRA headquarters in Kampala.
At the moment, different banks, such as NC bank, are setting up bancassurance departments as they prepare to start offering the same service. Stanbic is the only bank so far that has received a license.
Mweheire noted the bank was ready to implement the new development.
“We have been preparing to launch the service for some time now and have invested significantly in training staff, signing partnerships and putting in place the technology and infrastructure needed to roll out the product smoothly,” Mweheire said.
Lydia Kayonde, the head of bancassurance at Stanbic bank, explained that because everything happens under one roof, bancassurance will provide customers with a one-stop-shop solution which offers greater convenience, savings and choice.
Kaddunabbi said the high level of public confidence and trust in banks makes them particularly well positioned to attract consumers to purchase insurance products from their distribution outlets.
“It is through such partnerships that the insurance industry can grow and increase its penetration in Uganda.” Kaddunabbi said.
Insurance penetration in Uganda stands at less than one per cent, far lower than the figures in neighbouring Rwanda and Kenya.