I&M Bank eyes piece of insurance business

I&M Bank expects partnership to help create innovative products that directly meet growing needs of customers.

I&M Bank has tapped into the insurance business with the launch of Bancassurance in partnership with Jubilee Insurance and Gateway Assurance companies.

Customers of the mid-tier lender will now have access to a wide range of insurance solutions through its retail network across the country. I&M Bank Chief Executive Officer Arum Mathur said the strategic alliance builds on the strong presence, complementary strengths and established bancassurance capabilities of  the firms, both in Kenya and around the region.

The new partnership is expected to deliver significant value to I&M Bank clients, who stand to benefit from the bank’s strong advisory capabilities and market-leading insurance solutions of the two insurers.

“With a dedicated partnership, we can leverage on Jubilee and Gateway Assurance insurance expertise to create innovative products that directly meet the growing needs of our customers and deliver better value and service,” Mr Mathur said, adding that the partnership would be extended to other insurance firms in future.

Insurance uptake

Deputy Commissioner of Insurance Agnes Ndirangu, who presided over the launch, lauded the move saying limited channels had hindered the growth of insurance uptake in the country.

“For a population of more than 40 million people, a network of 140 insurance brokers is not enough and that explains why penetration is still very low – at below 4 per cent, signifying massive headroom for growth and entry of new players like banks,” said Mrs Ndirangu.

“As the regulator, we would like to appeal to leaders and operators in the sector to harness the growth opportunities and to think forward and develop innovative products that will serve more Kenyans,” she stated.

Mr Mathur noted that although insurance companies in the country had experienced impressive growth over the years, the reluctance by many Kenyans to take up insurance is still experienced in all sectors of the economy.

“More often than not, insurance is taken for loan protection purposes and regulatory compliance and not for personal protection. This position should be reversed by increasing awareness of insurance and its benefits among Kenyans and encouraging them to take personal insurances such as house holders, Personal Accident, child education, personal pensions and so on,” he said.

“We will work closely with underwriters in the industry, to drive higher uptake of insurance products and services among bank customers and Kenyans at large through our network of 30 branches across the country.”

Mr Mathur said the bank in collaboration with underwriters will endeavour not only to redesign products, but also do more to integrate them into existing bank products to make them simpler and look like bank products.

“This is the way in which the insurance industry will be able to enhance the level of financial inclusion among the population,” he said.

 

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