Stanbic Bank has become the first bank in Uganda to be granted a Bancassurance license by the Insurance Regulatory Authority (IRAU) following passage of the Financial Institutions Amendment bill 2016 and subsequent approval of the regulatory guidelines by the Bank of Uganda.
Handing over the license at ceremony held at the IRAU Headquarters in Nakasero, Alhaj Kaddunabbi Lubega, The CEO IRA said, “The introduction of Bancassurance as a strategic distribution channel of insurance is one of the most significant recent developments in the Financial Services Sector in Uganda. It will increase access to insurance services amongst Ugandans in different parts of the country through the vast bank branch network.”
“The high level of confidence and trust generally placed by the public in banks makes them particularly well positioned to attract consumers to purchase insurance products from their distribution outlets. It is through such partnerships that the insurance industry can grow and increase its penetration in Uganda.” He added.
Receiving the license on the behalf of the bank Patrick Mweheire the CEO Stanbic Bank noted, “We are extremely proud to be the first Commercial Bank in Uganda to offer Bancassurance. As Stanbic, we have been preparing to launch the service for some time now and have invested significantly in training staff, signing partnerships and putting in place the technology and infrastructure needed to roll out the product smoothly.”
Talking about the benefits of selling Bancassurance Lydia Kayonde Head of Bancassurance at Stanbic Bank explained, “Bancassurance will provide customers with a one-stop-shop solution which offers greater convenience, savings and choice. In addition, the premium prices will be better negotiated and product turnaround times will inevitably improve.”