Stanbic Bank retains significant share of bancassurance marketDogo said the bank generated UGX8.1 billion in short-term general insurance premiums and UGX14.5 billion in life insurance premiums to cap a year of growth amidst stiff competition.
Bancassurance contributed UGX103.5 billion to the UGX1.1 trillion Gross Written Premium (GWP) recorded by Uganda’s insurance sector in 2021 with Stanbic Bank accounting for 22 pc to consolidate its position as market leader.
Dogo Singh Sherman, Stanbic Bank Uganda’s Manager for Bancassurance said: “We are pleased to retain our market share in a small, but growing bancassurance business and 2022 offers us another challenging opportunity to consolidate our position—we’ll continue to innovate through unique partnerships with the customer at the centre of everything we do.”
Bancassurance is the sale of life assurance and other general insurance products through commercial banking institutions; in 2020, bancassurance sales contributed only UGX32 billion to the UGX1.06 trillion GWP recorded by the country’s insurance sector.
Stanbic Bank Uganda’s bancassurance agency dominated other commercial bank players in a small but steadily growing business unit, with the lender aggregatingUGX22.5 billion in GWP, equivalent to 22 pc of the total market share.
The bank generated UGX8.1 billion in short-term general insurance premiums and UGX14.5 billion in life insurance premiums to cap a year of growth amidst stiff competition.
Stanbic Bank also paid out the most claims in 2021 with life insurance claims paid on behalf of various insurance companies amounting to UGX5.6 billion and UGX1.5 billion in general insurance claims.
According to the Insurance Regulatory Authority (IRA) the insurance industry enjoyed a generally good year with GWP for both life and non-life cover growing by 11 pc mostly boosted by a 22 pc increase in Life Gross Written Premiums.
Makonese Tichaona, Stanbic Bank’s Head of Wealth and Insurance for the East African region has welcomed the performance noting that in a competitive market where the various bancassurance agencies continue striving to improve their solutions, Stanbic’s bancassurance business managed to be consistent in its delivery by focusing on client-centred solutions.
Makonese said through leveraging data science SBIA has been able to craft tailor made solutions to address client needs. The affordable five-in-one Business Comprehensive cover that addresses the needs of the SMME to the business community is a case in point.