Kenya joins Uganda, which has also enacted laws to streamline the operations of bancassurance to drive penetration of insurance. I&M Bancassurance offers both General and Life insurance. By choosing I&M Bancassurance as your preferred insurance partner, you will enjoy the following . Banking institutions and insurance companies have found banc assurance to be an attractive and profitable complement to their existing activities. The Kenyan.
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Finaccord – Bancassurance in Kenya: Current State and Future Perspectives to
Sign up to receive offers, news and information via email. Initially, traditional brokers and agents were not comfortable with the idea of having to share their space with banks. For further information about this research, please bancassuranxe the table of contents and series prospectus by clicking on the corresponding links above, or e-mail info finaccord.
Consequently, it makes more sense to put aside the current rivalry and focus on harnessing the collective experience, strategic creativity and innovation of insurers, banks, brokers and agents towards solving our persistent penetration challenge.
Finaccord is also able to undertake bespoke research and consulting assignments about this and other subjects. The draft guidelines, though still in the pipeline, come with stricter rules for the banks bancassurwnce such clauses as: Contact us at Finaccord. This research can be used in one or more of the following ways: Bancassurance…the new opportunity; Growth, Differentiation and Disruption While other factors including financial constraints, pressure to meet targets and low ni, might have also contributed to the declining numbers, the main threat being alluded to by many agents is bancassurance.
Kfnya to the Insurance Regulatory Authority, the insurance sector in Kenya has, in the last 5 years, witnessed an increase in dropout of agents and a considerable reduction in new agent registrations. Your email address will not be published.
Leave a Reply Cancel reply Your email address will not be published. Trade Credit Insurance in Spain. Finaccord and other Aon group companies will use your personal information to contact you from time to time about other products, services and events that we feel may be of interest to you. Bancassurance…the new opportunity; Growth, Differentiation and Disruption. Banc assurance has been identified as one of the distribution channels through which insurance penetration can be enhanced.
All prospects shall be allowed to decide out of their own volition, which insurance product they wish to buy and from which insurer. Over 1, agents dropped out of the industry in up from agents who dropped out in Bancassurance as a penetration strategy used by Insurance Companies in Kenya.
Technology as a Driver for Special Risk Bancassurance In many countries around the world, India being a great example, the distribution of insurance by banks using their branch network has proven to be a very effective channel of increasing insurance penetration.
Our penetration is at 2. The research then focuses specifically on bancassurance with commentary in several areas: To begin downloading this document you will need to either sign in or create an account below. The Insurance Regulatory Authority IRA has had to step in following numerous complaints from agents and are coming up with guidelines to help regulate bancassurance business. However, brokers seemed to be more for the idea than agents believing that the entry of banks into the insurance sector will increase retail outlets and raise the penetration of insurance products countrywide.
Banking institutions and insurance companies have found banc assurance to be an attractive and profitable complement to their existing activities. The Kenyan insurance industry has been relying heavily on agents and brokers to sell insurance products.
Operating model — the bank must have clarity on the model they will function within and what success looks like in that context 2. Banks have limited insurance business experience and are mainly able to handle straightforward products that are simple to explain and service.
Insurance in Kenya is mainly sourced through agents, brokers or directly by insurance companies with agents taking the lead by In my opinion the three key areas that I believe banks need to focus on are: Strategic partnerships — banks must ensure that they get the right kind of insurance partner who will among other things give them the flexibility to create the right kind of products while maintaining their existing customer relationship intimacy.
Your browser does not support iframes. There is still considerable room in the market for the professional intermediary. If one considers this low penetration, then it is prudent to say that there is still a lot of ground to be covered and development of alternative distribution channels such as bancassurance catering to the untapped market segments must be encouraged rather than vilified.
Bancassurance as a penetration strategy used by Insurance Companies in Kenya
Author Ombonya, Erick O. Cookies help us to provide you with a positive experience. It does seem these initial fears were justified as current bxncassurance reveal a disruptive shift in the insurance landscape since the entry of bancassurance. The research design used in this study was cross sectional descriptive survey of a defined population as it involved a study of all the eighteen insurance companies which use banc assurance as a channel of distribution. In many countries around the world, India being a great example, the distribution of insurance by banks using their branch network has proven to be a very effective channel of increasing insurance penetration.
Beyond Operational Efficiency July 25, While other factors including financial constraints, pressure to meet targets and low commissions, might have also contributed to the declining numbers, the main threat being alluded to by many agents is bancassurance.
Some features of this site may not work without it. Since the agent and broker led channels have failed to achieve significant penetration of insurance; there is need for the insurance industry players to adopt new and more efficient channels.
Bancassurance Not the End of Insurance Agencies
Study findings show that banc assurance has increased insurance uptake by increasing its distribution channels, attracting new customers while retaining the old and winning the customers trust unlike the traditional agents since most customers trust banks and they frequently visit. Road Assistance in Russia. Descriptive statistics was used to analyze the data; frequencies, percentage relative frequencymean and standard deviation Presentation was in form of table, charts, graphs and explanation presented in prose.