NAIROBI: Ecobank Kenya Limited has entered into the bancassurance segment with the launch of EcoInsurance Agency Limited. The move by the lender aims at serving its customers better and growing its earnings from new revenue streams.
Through collaboration with leading insurance companies, EcoInsurance Agency Limited will provide general insurance cover as well as life insurance products. EcoInsurance Agency Limited will work in partnership with renowned insurers namely Old Mutual, Saham Insurance and UAP Insurance.
“We are positioning ourselves to expand the insurance business through the use of innovative distribution channels with a focus on growing the life and non-life business as we seek to increase insurance penetration in the country which is just below 3.8 percent,” EcoInsurance Agency Limited CEO Ehouman Kassi said.
“We continue to offer our customers innovative and accessible financial solutions and other value additions under one roof across all our branches in the country,” said Kassi. On his part, Kenya Bankers Association Chief Executive Officer Habil Olaka revealed that only seven percent of Kenyans have any kind of insurance.
“In a population of 43 million, this is skewed on the lower-end especially when compared to countries such as Egypt and South Africa. The insurance penetration in Kenya is quite low and such alternative channels to sell insurance are applauded,” he said. Olaka said that as the sector grows and expands, the proposition of inclusiveness should be put in place to cover more citizens living outside the insurance bracket.
Ecobank Transnational Incorporated, the parent company of the leading independent pan-African banking group with a presence in 36 African countries, has already launched bancassurance services in Ghana and Nigeria for both life and general insurance.
“Going forward we anticipate lenders to shift focus to non-interest revenue streams as competition exerts pressure on costs of deposits and lending rates lower. We anticipate banks to improve offerings on their alternative channels going forward to drive up revenue,” said Standard Investment Bank analyst Faith Waitherero.
