Kenya’s Insurance Uptake Receives Boost from SBM Bancassurance Product
- According to the Insurance Regulatory Authority (IRA), insurance uptake stands at a low of 3% compared to the global rate of 6%
- The Central Bank of Kenya (CBK) allowed commercial banks to operate a bancassurance business to boost the percentage of uptake
- The latest lender to enter the insurance market is SBM Bank, which launched a bancassurance solution for its customers
Kenyans planning to take up insurance can now enjoy bancassurance products.
Source: UGC
SBM Bank Kenya unveiled the SBM Bancassurance Intermediary, which aims to consolidate insurance solutions into a seamless banking experience.
Why SBM launches bancassurance
Commercial banks ventured into the insurance business following a green light from the Central Bank of Kenya (CBK) to boost insurance uptake in the country.
Kenya's Insurance Regulatory Authority (IRA) reported that insurance uptake remains at a low of 3% compared to the global rate of 6%.
According to the Kenya National Bureau of Statistics (KNBS) report, insurance uptake in Kenya stood at 2.3% in 2023.
Speaking during the launch on Wednesday, July 23, SBM Bank CEO Bhartesh Shah said the lender's insurance product will simplify coverage processes, enhance affordability, bundle solutions and deliver prompt claims settlements.
“SBM Bancassurance Intermediary aims to transform how Kenyans view and access insurance. We identified an urgent need to demystify insurance products and eliminate tedious procedures. This launch is part of our broader strategy to create holistic, integrated financial solutions that are accessible and relevant to our customers’ evolving needs,” said Shah, in a press statement seen by TUKO.co.ke.
Why SBM bancassurance?
Source: UGC
The product will provide a wide range of solutions, including personal covers, business insurance, speciality covers and employee benefit covers.
It will allow customers to manage both banking and insurance needs in one location.
The SBM Bancassurance Intermediary Limited will provide personalised customer guidance to help clients identify the most suitable insurance solutions, ensuring that every policy aligns with their unique financial goals and risk profiles.
SBM Bancassurance Principal Officer, Ruth Njoroge, emphasised the multifaceted relevance of the offering, saying insurance is integral to people’s financial security.
"Whether they are safeguarding a business, investing in a child’s education, or planning for retirement. We will roll out tailored product bundles that can adapt to diverse lifestyle and professional needs, reflecting our commitment to inclusive coverage,” said Njoroge.
Companies seeking tailored insurance portfolios will benefit from expert consultations on risk profiling and coverage customisation.
The lender said it will expand the insurance product via digital integration, enabling customers to purchase and manage their policies through the Mfukoni mobile platform.
What are the benefits of Bancassurance?
Bancassurance allows insurance companies to engage with a large and diverse bank customer base.
The bank customers benefit from the convenience of accessing insurance products alongside a comprehensive range of financial services, including savings accounts, loans, and foreign exchange.
Its competitive pricing makes products offered more affordable and attractive to a broader customers.
Putting products and services under a one-stop shop supports customer needs by providing access to comprehensive coverage options tailored to their specific circumstances.
Source: TUKO.co.ke
