KCB and National Bank of Kenya (owned by KCB) have announced a partnership with Sanlam Life Insurance to boost the uptake of life insurance products in the country. Under the agreement, KCB Bancassurance Intermediary Limited (KBIL) and National Bank Bancassurance Intermediary Limited (NBIL) will offer customers access to a full range of financial and investment products at over 300 branches, including life insurance policies underwritten by Sanlam.
What is Bancassurance?
Bancassurance is a type of partnership between banks and insurance companies, where the banks offer insurance products to their customers. This allows customers to access a range of insurance products and services from the same institution they bank with. By doing this, banks can offer a more complete package of financial services to their customers, and insurance companies can reach a wider audience through the bank’s distribution channels. It’s a convenient way for customers to buy insurance products, and for insurance companies to expand their customer base.
New Products Rolled Out
| New Products | Description |
|---|---|
| Nawiri | Endowment policy that offers a guaranteed return after a specific period of time, and comes with a tax relief element |
| Elimisha Plus Cover | Enhanced education policy |
| Last Expense Cover | Robust funeral insurance product that helps cover costs associated with bereavement, and brings a tax-free death benefit upon the policy holder’s demise |
KBIL and NBIL will also distribute three new insurance products: the Nawiri endowment policy, which offers a guaranteed return after a set period; the Elimisha Plus Cover for education expenses; and the Last Expense Cover, a more comprehensive funeral insurance product that covers the costs associated with bereavement.
The Nawiri policy comes with a tax relief element, while the bereavement cover provides a tax-free death benefit upon the policyholder’s demise, making it an attractive option for investment. The partnership aims to deepen KCB and National Bank of Kenya‘s presence in the insurance market and increase Kenya’s life insurance penetration rate, which currently stands at 1.3%, according to the Insurance Regulatory Authority.
Annastacia Kimtai, Managing Director at KCB Bank Kenya, said that the banks 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 and every corner of the country.” Sanlam Kenya Group CEO, Dr. Nyamemba Tumbo, added that the partnership would provide customers with a full suite of financial services to meet their long-term investment needs. He also stated that Sanlam would leverage its distribution and processing capabilities, stronger brand visibility, and a greater degree of public trust to deliver a superior customer and product experience.
Over time, the bancassurance distribution channel has emerged as the preferred choice for mass-market clients looking for simple and low-cost financial products offered by financial institutions.
