KCB Bank and its subsidiary National Bank of Kenya (NBK) have inked an insurance distribution deal with Sanlam Life Insurance to dispense life cover products underwritten by the latter following the expiry of a five-year contract between the lenders and Liberty Insurance.
The partnership, to be effected through KCB Bancassurance Intermediary Limited and National Bank Bancassurance Intermediary Limited, is expected to deepen the uptake of Sanlam’s products countrywide through the use of the banks’ combined 300 branches.
The move is also projected to expand KCB’s and NBK’s play in the insurance market, effectively boosting Kenya’s life insurance penetration rate, which currently stands at 1.3 percent, according to the Insurance Regulatory Authority.
“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 and every corner of the country,” said KCB managing director Annastacia Kimtai.
Sanlam Group CEO Nyamemba Tumbo affirmed that the insurer will leverage its distribution and processing capabilities, as well as a newly found stronger brand visibility and a greater degree of public trust to deliver a superior customer and product experience.
“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,” said Dr Tumbo.
Under the partnership, the players have also rolled out an endowment policy dubbed Nawiri which is a savings and investment product that offers a guaranteed return after a set period of time, and a last expense cover which is a funeral insurance product that helps offset costs associated with bereavement.
IRA CEO Godfrey Kiptum has lauded the partnership noting that since the inception of the Bancassurance distribution model in 2004, it has played a critical role in supporting the financial aspirations of many policyholders.
“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 Kiptum.
