Four years since Bancassurance was first introduced in Uganda, experts say the concept is gaining ground and soon every bank customer will also have a life insurance cover attached to their account.
Bancassurance is the selling and distribution of insurance products through banks.
Commercial Banks are adopting it because selling insurance products gives them a new and lucrative revenue stream without high new setup costs.
The Principal Officer in charge of Bancassurance at Diamond Trust Bank (U) Ltd, Fred Baguma says the future of Bancassurance in Uganda is bright and that every bankable client shall have a life insurance cover in addition to bank account.
“… One would require a valid national identity card and for as less as Shs152,000, you are eligible for a life insurance cover with guaranteed maturity benefit of Shs11,400,000 after five years subject to consistent premium payment,” Baguma says.
Diamond Trust Bank (U) Ltd is one of the banks authorized to offer Bancassurance business in Uganda effective 1st January 2020 having been licensed by the Insurance Regulatory Authority (IRA) Uganda. Over 20 banks now offer Bancassurance that is set to increase insurance penetration in the country.
Diamond Trust Bank (U) has partnered with leading insurers in Uganda like ICEA Life Insurance, Jubilee Life insurance, Jubilee General Insurance Company, MUA Insurance Company, Alliance Africa General Insurance Company.
Baguma encourages Ugandans to embrace these services that have been introduced to ease purchase of insurance policies for those that require them.
He further adds that insurance and its advantages have over the years been echoed and Ugandans have slowly embraced insurance to safeguard themselves or their businesses against different calamities.
By Drake Nyamugabwa