Stanbic beats competitors to Bancassurance license
October 26— Stanbic Bank Uganda (SBU) has become the first bank in Uganda to be granted a bancassurance license by the Insurance Regulatory Authority (IRA) of Uganda following passage of the Financial Institutions Amendment Bill 2016 earlier this year.
It includes a provision for bancassurance and the subsequent approval of the regulatory guidelines by the Bank of Uganda.
Alhaj Kaddunabbi Ibrahim Lubega, the IRA Chief Executive Officer said in mid-week, “The introduction of bancassurance as a strategic distribution channel of insurance is one of the most significant recent developments in the Financial Services Sector in Uganda. It will increase access to insurance services amongst Ugandans in different parts of the country through the vast bank branch network.”
Bancassurance is a mutually benefit business arrangement in which a bank and an insurance company form a partnership so that the insurance company can sell its products to the bank’s client base.
Receiving the license on the behalf of the bank, Patrick Mweheire the SBU Chief Executive said, “We are extremely proud to be the first commercial bank in Uganda to offer bancassurance. As Stanbic, 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.”
SBU offers the full spectrum of financial services. Its Corporate & Investment Banking division serves a wide range of requirements for banking, finance, trading, investment, risk management and advisory services. Corporate & Investment Banking delivers this comprehensive range of products and services relating to: investment banking; global markets; and global transactional products and services.
Lubega said, “The high level of confidence and trust generally placed by the public 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.”
IRA is responsible for receiving applications and licensing financial institutions to conduct bancassurance business with authorisation from the Central Bank.
SBU is a member of the Standard Bank Group, Africa’s largest bank by assets. Mweheire said, “Naturally, key to the success of this project will involve raising public knowledge and awareness about the various benefits and types of insurance products available through banks. To that end, we look forward to working with the regulator and other industry players to run effective communications and stakeholder initiatives that will ensure this happens.”
Highlighting the benefits of selling bancassurance Lydia Kayonde, Head of Bancassurance at SBU said, “Because everything happens under one roof, bancassurance will provide customers with a one-stop-shop solution which offers greater convenience, savings and choice. In addition, the premium prices will be better negotiated and product turnaround times will inevitably improve. Bancassurance is an efficient distribution channel with higher productivity and lower costs to serve than traditional sales channels.”