Stanbic Bank has become the first bank in Uganda to be granted a Bancassurance license by the Insurance Regulatory Authority of Uganda following passage of the Financial Institutions Amendment bill 2016 which included a provision for Bancassurance and the subsequent approval of the regulatory guidelines by the Bank of Uganda BOU.
The Financial Institutions Act 2016 specified that the Insurance Regulatory Authority Uganda (IRAU) would be responsible for receiving applications and licensing financial institutions to conduct Bancassurance business with authorization from the Central Bank.
Handing over the license at ceremony held at the IRAU Headquarters in Nakasero, Alhaj Kaddunabbi Ibrahim Lubega, The CEO of Insurance Regulatory Authority of Uganda 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.”
Receiving the license on the behalf of the bank, Patrick Mweheire the Chief Executive of Stanbic Bank said the bank was 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,” he said.
Talking about the benefits of selling Bancassurance, Lydia Kayonde Head of Bancassurance at Stanbic Bank explained that the 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 turn around times will inevitably improve.
“Bancassurance is an efficient distribution channel with higher productivity and lower costs to serve than traditional sales channels,” she noted.