Bancassurance contributed UGX103.5billion to the UGX1.1trillion Gross Written Premium (GWP) recorded by Uganda’s insurance sector in 2021 with Stanbic Bank accounting for 22% to consolidate its position as market leader.
Bancassurance is the sale of life assurance and other general insurance products through commercial banking institutions; in 2020, bancassurance sales contributed only UGX32bn to the UGX1.06trillion GWP recorded by the country’s insurance sector.
Stanbic Bank Uganda’s Bancassurance agency dominated other commercial bank players in a small but steadily growing business unit, with the lender aggregating UGX22.5billion in GWP, equivalent to 22 percent of the total market share.
The bank generated UGX8.1billion in short-term general insurance premiums and UGX14.5billion in life insurance premiums to cap a year of growth amidst stiff competition.
Stanbic Bank also paid out the most claims in 2021 with life insurance claims paid on behalf of various insurance companies amounting to UGX5.6bn and UGX1.5Bn in general insurance claims.
According to the Insurance Regulatory Authority (IRA) the insurance industry enjoyed a generally good year with GWP for both life and non-life cover growing by 11% mostly boosted by a 22% increase in Life Gross Written Premiums.
Makonese Tichaona, Stanbic Bank’s Head of Wealth and Insurance for the East African region has welcomed the performance noting that in a competitive market where the various bancassurance agencies continue striving to improve their solutions, Stanbic’s Bancassurance business managed to be consistent in its delivery by focusing on client-centred solutions.
Makonese added that through leveraging data science SBIA has been able to craft tailor made solutions to address client needs. The affordable five-in-one Business Comprehensive cover that addresses the needs of the SMME to the business community is a case in point.
Dogo Singh Sherman, Stanbic Bank Uganda’s Manager for Bancassurance said: “We are pleased to retain our market share in a small but growing bancassurance business and 2022 offers us another challenging opportunity to consolidate our position—we’ll continue to innovate through unique partnerships with the customer at the centre of everything we do.”