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