Bancassurance - Leverage On The Bank's Branch Network

You Deserve a Life Policy

Bancassurance is emerging in Kenya as the next frontier both in income growth for insurance companies and insurance penetration.

Most of the leading insurance companies in Kenya are partnering with banks to offer insurance products through the banks distribution network. Insurance companies such as jubilee Insurance Company who have already partnered with DT bank due to their shareholding interests. So what happens to the insurance companies that do not have relationships with banks? The way forward is entering into agreements with one or more banks in order to use their banks network.

The most interesting lead in bancassurance in Kenya is Barclays Life which is a wholly owned subsidiary of Barclays bank Kenya (shareholding structures have not been cited yet).

Barclays has set up Barclays life to offer insurance products in Kenya. The model has already worked for them in other African states through ABSA Life which is a member of Barclays operations in Africa.

Barclays Life in Kenya already has a head start. Through its various branch network in Kenya, if they are to establish a Life operation in each of those branches they are more likely to have a wider foot print in the country and push insurance distribution centres close to the people.

The underwriter is also likely to benefits from the lower cost per sales made possible by the sizable loyal customer base through its banking network customers. They also enjoy significant brand awareness in the country providing lower per cost in marketing and advertising.

Another strategy to be realised by the underwriter is the use of the bank’s strong marketing and processing capabilities. The use of strong communication channels such as direct mails and ATMS. The use of technology has resulted in improvements in transactions processing and greater customer service. The use of ATMs will offer an efficient channel of insurance distribution and as a mode of premium collection where potential customers can easily purchase and insurance policy and for current customers can use to pay their premiums.

The underwriter is also going to benefit from its own current insurance business generations like its huge loan book which the bank has been using other insurance providers as they have been doing.

By successfully mining their customer database and leveraging on its brand reputation and distribution systems, the underwriter is likely to enjoy an exponential growth and develop a unmatched client base. If they exploit the bancassurance strategy in a targeted manner we are likely to see prosperous Life company kenya

Product of The Week from Aon: Total Employee Benefits Solution

Total Employee Benefits Solution

The Aon Kenya Total Employee Benefits Solution is an innovative, practical and holistic employee benefits solution that provides employers with one employee benefit solution as opposed to separate and independent solutions i.e Group Life Assurance, group Personal accident and WIBA covers. The employees are fully covered from all risks ranging from accidents, illness or death through natural causes irrespective of which sector they may be engaged in while its cost effective.

Aon Total Employee Benefits Solution comprises of the following:

Death Benefit – A sum equivalent to 3 years salary is paid out if a member dies from an illness. If a member dies from an accident or occupational related cause, a sum equivalent to 8 years salary is paid out

Critical Illness Benefit – This benefit pays out a sum equivalent to 30% of the Death Benefit’s( up to a Max 5 M agreed with the insurer) on diagnosis of any of the following critical illnesses; Heart attack, Stroke, Cancer, Kidney Failure, Coronary Artery Disease Surgery, Major Organ transplant & Paralysis, paraplegia and Blindness.

Permanent & Partial Disability Benefit – If a member becomes totally and permanently disabled due to illness, this benefits pays out a sum equivalent Three (3) Years salary. But if permanent and total disability occurs due to accidents or occupational related causes the member is paid a sum equivalent to his/her 8 years salary. Proportionate amounts are payable for partial disability as per the continental scale.

Temporary Total Disability – The benefit seeks to reimburse the company for the days the member is unable to work and he/she is still earning a salary due to an accidents. The benefit usually runs for a period of 2 years. Or until the member recovers whichever is earlier.

Funeral Expense Benefit – The benefit pays out a sum equivalent to a capital sum usually Kshs. 100,000 within 48 Hours of notification of notification of death.

Medical Reimbursement - policy will provide cover for medical expenses incurred following accidental injury subject to policy limits. The expenses are reimbursed upon the production of the relevant medical bills but arrangements may however be made to have the bills paid directly to the attending medical institution.

 The policy does not cover pre-existing physical or mental defects, self-exposure to hazardous activities like death from drugs/alcohol, suicide and war risks unless special arrangements are made.

Free Cover Limit – We negotiate with the insurers on the best applicable free cover limit depending on the risk within the scheme and also ensure minimal people are required to go for medical examinations in order to have their full covers

Benefits of the Aon Kenya Total Employee Benefits Solution;

a)         Administration: The combined product provides for ease of administration as the all the policies are handled through a single point of contact and no need to contact different handlers on the different policies.

b)         Elimination of duplication of covers: since this cover combines Group Life and GPA/WIBA, the solution eliminates duplication of cover which would arise if all the covers were taken up separately.

c)         Cost efficiency: Due to elimination of duplicated covers and merging of covers the costs are reduced even as an employer is able to adequately safe guard the employee against illness and accidental risks whether occupational on non-occupational related

d)         Talent attraction & retention: With this solution, all employee benefits are covered and employers are able to attract and retain top talent due to more attractive and competitive benefits.

e)         Compliance: Management of the risk exposures to ensure stability of insurance costs and compliance with the legislation (WIBA)

f)          Medical tests: Medical tests for those above the Group Life Free Cover Limit can be done through the medical cover

Insurance Magazine

The first insurance tabloid in Kenya is here. We will be sharing insurance information before it becomes news. Below are some of the areas we will be keeping a close eye on;

• New products
• New insurance companies setting up
• Mergers
• Various performances
• Manpower movements in the industry
• Events and promotions
• Emerging trends
• Advise on matters insurance
• polls on best companies on customer service and claims settlement
• Jobs

We will also be featuring various insurance companies and an award for the insurance company of the month.

We will also be posting insurance medals for outstanding achievements and share stories of the gurus in the industry.

We will keep engagements with the general public. We will not be editing public sentiments safe for the cases where such sentiments are targeting, tribal or considered lacking moral.

Chief Editor

Nyankabaria Emmanuel