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StanChart eyes new revenue with Sanlam contract

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SANLAM KENYA CEO MUGO KIBATI (LEFT) AND HIS STANDARD CHARTERED COUNTERPART LAMIN MANJANG DURING THE SIGNING OF A PARTNERSHIP DEAL FOR DISTRIBUTION OF GENERAL INSURANCE PRODUCTS ON OCTOBER 5, 2017. PHOTO | SALATON NJAU | NMG

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Summary

  • The two firms said they have invested heavily in data analytics which will help them check on rising fraud in private motor segment, a key driver of industry’s underwriting loss.
  • Chief executive Lamin Manjang said bancassurance was central to the transformation of the lender, owned 74 per cent by Standard Chartered Group of the UK, to a one-stop financial service provider.
  • This is aimed at diversifying the bank’s revenue sources from traditional interest earnings, which dropped 8.06 per cent to Sh9.16 billion in half-year period ended June.

Standard Chartered Kenya #ticker:SCBK is seeking to expand its revenue streams in a new deal signed with Sanlam Kenya for sale of its insurance policies.

The bancassurance deal between Standard Chartered Insurance Agency and Sanlam General Insurance will see the listed lender sell Sanlam’s general insurance products in its halls for a fee.

The partnership, which is a modification of an existing arrangement on life insurance for its borrowers, initially targets underwriting business in motor private and domestic (house and household items) insurance.

The two firms said they have invested heavily in data analytics which will help them check on rising fraud in private motor segment, a key driver of industry’s underwriting loss.

Chief executive Lamin Manjang said bancassurance was central to the transformation of the lender, owned 74 per cent by Standard Chartered Group of the UK, to a one-stop financial service provider.

This is aimed at diversifying the bank’s revenue sources from traditional interest earnings, which dropped 8.06 per cent to Sh9.16 billion in half-year period ended June.