Market News

Stima Sacco establishes insurance unit

stima agm

Stima Sacco members during an AGM. FILE PHOTO | NMG

Stima Sacco, Kenya’s largest by membership, has established an agency targeting commissions from the over Sh700 million insurance business it outsources annually for its clients.

The sacco says the unit will service all insurance needs of the 100,000 members while seeking to use it to lure insurance agency business from external sources.

“Insurance premiums for our loan-guard stand at Sh60 million, deposits (Sh60 million), group medical insurance (Sh30 million) and car loans last year amounted to about Sh520 million. We have been sourcing brokerage services from other agencies and this is a business line we are keen on harnessing to build our members’ earnings,” corporate communications manager Jack Kulova said.

Stima Sacco Friday advertised for an insurance officer to drive the new business line as well as guide future plans by the deposit-taking organisation with an asset base of Sh27 billion and a Sh22 billion loan book.

READ: Stima Sacco seeks to issue Sh5 billion home loans bond

Mr Kulova said the wholly-owned subsidiary, Stima Insurance Agency, will attend to all insurance agency needs for members in a one-stop shop arrangement.

Its properties whose insurance expires later in the year will now be serviced internally as the agency eyes transforming into a fully-fledged insurance business.

“The insurance officer will be tasked with enhancing mediation for out-of-court settlement of disputes with customers and other parties as well as facilitate settlement of insurance claims through insurance brokers,” the advertisement read.

Plans to establish the agency were approved during last year’s annual delegates meeting.

The 44-year old sacco has branches in Nairobi, Mombasa, Kisumu, Nakuru, Olkaria and Eldoret.