I&M Bank launches insurance sales unit to boost top line

I&M Bank has launched its insurance services unit, taking advantage of recent changes in law to open a new revenue stream.

The lender has partnered with Jubilee Insurance and Gateway Assurance to provide its customers with bancassurance services.

I&M Bank now joins local lenders among them Equity and NIC that have also diversified into offering insurance services. The services will be accessed through the bank’s distribution networks across the country.

“The strategic alliance builds on the strong presence, complementary strengths and established bancassurance capabilities of I&M Bank, Jubilee Insurance and Gateway Assurance, both in Kenya and around the region,” said I&M Bank chief executive officer Arum Mathur during the launch Tuesday in Nairobi.

Mr Mathur noted the uptake of insurance covers in Kenya is relatively low although insurance companies in the country had experienced impressive growth in recent years.

“The reluctance by many Kenyans to take up insurance is still experienced in all sectors of the economy,” said Mr Mathur, noting they would use the opportunity to tap new clients through their 30 branches across the country.

The bancassurance partnership will also be extended to other insurance companies among them Britam, UAP and AIG.

“We are waiting for clearance from the Central Bank of Kenya (CBK) to allow us roll out the service with other partners,” said Mathew Magotsi, head of bancassurance at I&M Bank.