Orient Bank gets bancassurance license

Following the amendment of the Financial Institutions Act 2016 to allow banks deal in insurance services, the Insurance Regulatory Authority (IRA) has so far issued licences to eight banks.

Orient Bank is the latest to secure the license.

Speaking at the license awarding ceremony, Kaddunabi Lubega, the CEO of IRA said bancassurance is aimed at increasing insurance penetration in Uganda since it allows insurers to rapidly widen their reach by tapping into an established market.

“We are optimistic that this arrangement will lead to an established and growing channel for insurance distribution. In this partnership, bank staff become the point of sale and point of contact for the customers”Kaddunabi said.

He said since insurers are in the business of selling promises, they must be absolutely transparent in the way this promise is made.

The customer must understand the terms and conditions of the promise to ensure that there are no surprises during the term of the contract, he said.

Julius Kakeeto, the managing director Orient Bank Uganda, reiterated Kadunnabi’s remarks, noting that the development will speed up insurance reach given the new opportunity presented with the inclusion of banks.

"It is 99% an opportunity for us since the insurance penetration is still very low. There is less number of outlets in the insurance sector and we have opened up windows through our branches across the country," Kakeeto said.