Sanlam taps KCB network to boost insurance uptake

Lender KCB and its subsidiary the National Bank of Kenya have entered into a distribution deal with Sanlam Life Insurance to deepen the uptake of life insurance products in the country.

Through KCB Bancassurance Intermediary Ltd (KBIL) and National Bank Bancassurance Intermediary Ltd (NBIL)—their respective bancassurance franchises—customers will access a full range of financial and investment products within the banks’ combined 300 branches.

This will see KBIL and NBIL distribute life insurance products, underwritten by Sanlam. The partners have also rolled out an endowment policy dubbed Nawiri, a savings and investment product that offers a guaranteed return after a specific period of time.

They have also introduced an enhanced education policy—Elimisha Plus Cover—and a more robust Last expense Cover, a funeral insurance product that helps cover the costs associated with bereavement. Nawiri comes with a tax relief element while the bereavement cover brings a tax-free death benefit upon the demise of a policyholder making this a suitable option for investment.

“We are reimagining insurance by leveraging the existing offerings and rethinking the distribution model to ensure we take the products to the uninsured population across the counties,” said Annastacia Kimtai, the Managing Director, KCB Bank Kenya.

Read also: Sanlam-Allianz tie-up spins out Africa’s giant insurer

The proposition is expected to deepen KCB and NBK business in the insurance market, effectively boosting Kenya’s life insurance penetration rate which currently stands at 1.3 per cent according to the regulator Insurance Regulatory Authority (IRA).

Sanlam Kenya Group CEO, Dr Nyamemba Tumbo said: “For customers who prefer to receive services from a one-stop-shop like a bank, this partnership comes in handy for them as they will now be able to access a full suite of financial services to meet their long-term investment needs. We shall therefore leverage our distribution and processing capabilities, stronger brand visibility and a greater degree of public trust to deliver a superior customer and product experience,” said Mr Tumbo.

In Kenya, the bancassurance distribution channel has emerged as the natural choice for mass-market clients looking for simple and low-cost products being offered by financial institutions.

Godfrey Kiptum, Commissioner of Insurance CEO of the Insurance Regulation Authority lauded the partnership between the three entities noting that since the inception of the Bancassurance model of distribution in 2004, it has played a critical role in supporting the financial dreams of our customers.

“As the industry regulator, we welcome this move as we see it as an opportunity to meaningfully improve bank customers’ financial security, lives, and businesses given the growing awareness among customers about protection and the need to financially secure themselves through a robust financial plan,” said Mr Kiptum.

The Association of Kenya Insurers in its 2017 study indicated that about Kes6 billion of life business was through bancassurance while that of non-life was estimated at Kes10 billion. This points to a growing need for the model of distribution to be utilized optimally to unlock greater returns.

[email protected]

Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox, every month.

We don’t spam! Read our privacy policy for more info.