Stanbic Bank carves out 20pc of Uganda’s bancassurance businessDogo said Stanbic will focus on gaining market leadership for the Life insurance business where the lender enjoys 12 pc market share equivalent to UGX6.9 bn, but two percentage points behind the top spot holder.
The Insurance Regulatory Authority of Uganda (IRA) has revealed that the industry registered impressive growth in the first six months of 2021 due to improved product uptake and interest generating UGX600 billion (nearly $170 million) in gross premiums.
Bancassurance (life assurance and other insurance products sold through banking institutions), contributed 8.2 pc of the industry’s total business with Stanbic Bank Uganda taking up a fifth of the market.
In the period April-June 2021 (Q2), bancassurance recorded a 54 pc growth led by Stanbic Bank which consolidated its market-share to 21.2 pc from 19.1 between January and March.
In 2020, the bancassurance sector produced UGX32 bn (full year volume) compared to UGX49.3 bn (almost $14 million) in the first half of 2021 which represents a 54.24 pc growth, according to the latest report published by the regulator.
Stanbic Bank attracted UGX10.4 bn in total gross premiums for the period April-June 2021. Absa Uganda came in second with UGX9.6 bn; Centernary (UGX8.7 bn); Post Bank (UGX3.8 bn); dfcu Bank (UGX3 bn); Orient Bank (UGX2.7 bn) and Housing Finance bank (UGX2.3 bn).
The bank, which was one of the first to acquire a bancassurance license, also out-earned its competitors, raking in UGX1.91 bn representing 24.4 pc of all bancassurance commissions paid to banks for the period under review. Stanbic also dominated bancassurance business for Non-life (Genera linsurance) product lines generating UGX3.5 bn which is equivalent to 28 pc of total industry volumes.
Looking ahead, Singh Dogo, Stanbic Bank Uganda’s Head of Bancassurance said focus will be on gaining market leadership for the Life insurance business where the lender enjoys 12 pc market share equivalent to UGX6.9 bn but two percentage points behind the top spot holder.
He said 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 our projection is that they will continue to grow on account of their unique positioning to address customer coverage needs coupled with our assured fast claims service,” he said.
Dogo said Stanbic’s bancassurance efforts will continue to focus on expanding dominance in individual life products with value propositions on essential services such as education, medical, and life insurance policies.