Kenya: I&M Bank launches bancassurance services

Dec 11, 2014

I&M Bank has partnered with Jubilee Insurance and Gateway Assurance companies to offer bancassurance services in Kenya.

I&M Bank has partnered with Jubilee Insurance and Gateway Assurance companies to offer bancassurance services in Kenya.

The bank's CEO Arun Mathur told Capital FM the move will allow customers to have access to a wide range of insurance solutions via its retail network across the country. "The strategic alliance builds on the strong presence, complementary strengths and established bancassurance capabilities of I&M Bank, Jubilee Insurance and Gateway Assurance, both in Kenya and around the region," he explained.


He added that I&M will work closely with underwriters in the industry, to drive higher uptake of insurance products and services among Kenyans.

The distribution of insurance products through banking networks - called bancassurance - is slowly developing in Africa.

It is considered a win-win partnership for banks and insurance companies. BNP Paribas - which provides such services in the Maghreb region -
believes it provides "a simple answer" to the financial needs of consumers and offers benefits such as ease of access to services, product simplicity and competitive prices.


By facilitating access to insurance for borrowers, bancassurance contributes to reducing
lenders'
risks and thus helps
to increase
access to credit.

Deputy Commissioner of Insurance, Agnes Ndirangu, told Capital FM that limited
distribution
channels
have hindered the growth of insurance uptake in Kenya.

"For a population of more than 40 million people, a network of 140 insurance brokers is not enough and that explains why the penetration is still very low - at below four per cent."ADNFCR-2976-ID-801765343-ADNFCR