Barclay Bank has become the second bank in Uganda to be granted a Bancassurance license by the Insurance Regulatory Authority (IRA) of Uganda.
Stanbic Bank received a similar license recently.
This follows the passage of the Financial Institutions Amendment bill 2016 which included a provision for Bancassurance and the subsequent approval of the regulatory guidelines by the Bank of Uganda BOU.
The license allows the bank to offer insurance services to its clients, like any other insurance firm.
Kaddunabbi Ibrahim Lubega, the CEO of Insurance Regulatory Authority of Uganda says that issuance of licences to banks aims at increasing the number of Ugandan accessing insurance.
Less than 2% of Ugandans are insured a percentage that is very minimal hence affecting the growth of the insurance sector. the low penetration has been attributed to less insurance products provided by the sector.
According to Kaddunabbi, many Ugandans demand for micro insurance products that weren’t initially provided by the traditional insurance firms.
He was optimistic that with bancassurance, increased access to insurance services amongst Ugandans in different parts of the country through the vast bank branch network will be registered.
“There is demand for simple insurance products in Uganda due to huge and largely untapped emerging market,” Kaddunabbi said.
Receiving the license on the behalf of the bank, Rakesh Jha, the managing director of Barclays bank noted that Bancassurance will provide customers with a one-stop-shop solution which offers greater convenience, savings and choice.
In addition, he said, this was to respond to their client demand for the insurance products.
“Our clients will have the honour of accessing different products at one center and this will increase the clientele”Jha said.