Dogo Singh, the Principal Insurance Officer of Stanbic Bank
At one percent, insurance penetration in Uganda remains low, but products like bancassurance, are steadily improving public perception about the advantages of being insured and Stanbic Bank continues to hold a leading position in the market.
Bancassurance is a partnership that allows commercial banks to offer insurance products to their customers, making it more convenient for them to access these services and contribute towards increasing the reach of insurance companies across the country.
Taking on insurance is a way to manage your risk against unexpected financial losses. The Financial Institutions Amendment Act, 2016 provides for the introduction of bancassurance in Uganda with the Insurance Regulatory Authority (IRA) acting as the regulator. Stanbic was among the first banks to launch its services in 2017.
According to IRA, in 2022, the insurance industry generated gross written premiums (GWP) of UGX1.4trillion of which the bancassurance share of premiums was UGX143 billion compared to the 2021 figure of UGX103 billion.
Year-on-year, the bancassurance segment has grown by 38%, contributing 9.9% as of industry’s total premiums in 2022.
IRA figures also showed Stanbic ranking in the first position with a market share of 19.38%, after generating total GWPs of UGX27.6 billion with General Insurance taking up UGX9.5 billion while Life Insurance posted UGX18.1 billion.
Absa Bank Uganda came in second with a total GWP of UGX25.9 billion and a market share of 18.22% while in the third was Centenary Bank with GWP of UGX25.7 billion and a market share of 18.04%.
According to Dogo Singh, the Principal Insurance Officer of Stanbic Bank, innovation, staff retention, and technical capacity building are crucial in ensuring that bancassurance is effective in serving clients and improving customer satisfaction.
He said, innovation is essential in developing new products and services that meet the changing needs of customers. Staff retention is crucial in ensuring that the bank has experienced and knowledgeable staff who can provide excellent customer service. Singh said, technical capacity building is also essential in ensuring that staff has the necessary skills and knowledge to offer quality insurance services.
In the General Insurance space, Stanbic generated 13,403 stand-alone policies against an industry total of 25,646 policies which was the highest, and about 167,000 Life Insurance policies.
Through bancassurance, Stanbic Bank has been able to offer a wide range of insurance products to its customers, including motor insurance, and home insurance. The bank has also been investing in technology to improve its services, such as introduction of mobile insurance services that allow customers to purchase and manage their insurance policies through their smart phones.
Makonese Tich, the Head of Insurance East Africa, attributes the rapid growth of Stanbic’s bancassurance services to close attention to client insights, working with the bank structure and also collaborating and following the guidance of the regulator to remain within the framework of the insurance law.
He said through innovation, staff retention, and technical capacity building, banks like Stanbic are working to improve their insurance services and increase customer satisfaction.
However, more public awareness is needed to highlight the advantages of being insured.
In a related development, Stanbic Bank Uganda was selected as second runner-up for being the Most Innovative Bancassurance Agent in Uganda during the annual Insurance Regulatory Authority (IRA) awards held recently in Kampala.
The award recognizes the bank’s contribution to promoting financial inclusion and protection through their unique individual medical product dubbed Stanbic MediProtect.