KCB licenced. KCB Bank was also last week licenced to offer bancassurance. The bank will work as an agent to increase insurance uptake. Currently, insurance penetrations stands at 0.79 per cent.
Bancassurance has pooled more than Shs9.3 billion from nine banks out of the 14 that have so far been licenced to offer the service.
Speaking at the signing of Opportunity Bank’s bancassurance licence, Mr Sande Protazio, the Insurance Regulatory Authority (IRA) assistant director research and market development, said the sector has seen significant gains ever since it was introduced about two years ago.
However, he said, proceeds from the other five banks are yet to be captured because they are still new in the market.
Just like any other sector, financial markets, especially insurance and banking, have been undergoing various transformations, key among them bancassurance.
Currently, 14 banks have been licenced to offer bancassurance, which mainly allows non-insurance financial institutions such as banks to underwrite insurance policies.
Mr Ibrahim Kadunabbi Lubega, the IRA chief executive officer, challenged insurers and bankers to diversify as well engage in innovation if they are to survive.
The banking and insurance sector, he said, must expand into new territories to widen their services scope and reach.
“Bancassurance is a big emerging market. We can’t be locked in the past. The world is changing,” he said, noting that banks that have been licenced to offer Bancassurance must make the best of it to serve customers better.
Mr Owen Amanya, the Opportunity Bank chief finance officer, said they will partner with eight insurance companies in both life and general insurance through which they will offer a number of insurance products across their branch network.