SBM Bank Kenya has launched its bancassurance subsidiary joining the growing list of lenders betting on partnership with insurers to diversify revenue streams.
The lender announced on Wednesday that it has entered the business by setting up SBM Bancassurance Intermediary that will see it partner with insurance companies to underwrite individuals and businesses.
SBM said the intermediary will allow it to simplify coverage processes, enhance affordability and improve claims settlement of personal covers, business insurance, specialty covers and employee benefit covers.
The lender becomes the latest bank to bet on bancassurance for growth. As at March this year, Insurance Regulatory Authority (IRA) had licensed 17 banks to undertake the business through bancassurance intermediary subsidiaries.
Top banks such as Absa Bank Kenya, Co-operative Bank of Kenya, I&M Bank, KCB, NCBA and Stanbic have bancassurance intermediaries.
The market has also attracted mid-tier and small lenders such as Credit Bank, Family Bank, HF Bank, Kingdom Bank, National Bank of Kenya, Prime Bank and Sidian Bank. Microfinance banks like Caritas, Faulu, Rafiki and SMEP are also licensed to undertake the business.
“We identified an urgent need to demystify insurance products and eliminate tedious procedures. This launch is part of our broader strategy to create holistic, integrated financial solutions that are accessible and relevant to our customers’ evolving needs,” said Bhartesh Shah, CEO at SBM Bank Kenya, during the launch in Nairobi.
The lender will also target insurance products that will be bundled with banking products to tap into diverse lifestyle and professional needs, according to SBM Bancassurance principal officer Ruth Njoroge.
SBM Bancassurance Intermediary aims to deliver key benefits centered on convenience and streamlined processes.
The value additions target all our customers within the SBM network and customer value chains allowing them to manage both banking and insurance needs in one location, the Bank has negotiated cost effective covers to optimize on the customer’s total cost of risk. A dedicated claims support channel is anticipated to ease the documentation process and quicken settlement.
SBM Bancassurance Intermediary Limited will provide personalized customer guidance to help clients identify the most suitable insurance solutions, ensuring that every policy aligns with their unique financial goals and risk profile.
The lender plans to expand its digital integration capabilities, allowing customers to purchase and manage their policies through the Mfukoni mobile platform.
Association of Kenya Insurers data published last year showed the value of insurance business underwritten through bancassurance grew by 13.3 percent to Sh35 billion representing 79.5 percent growth over the past five years.
