Thomas Cook in talks with UK government and investors over rescue deal    US sending troops to bolster Saudi air, missile defenses after attack    Egypt's presidency releases short film on the role of Egypt in founding of the UN    El Gouna Film Festival celebrates 100th birth anniversary of novelist Ihsan Abdel-Quddous    Poland's PiS pledges more spending ahead of parliamentary election    FIPRESCI and Netpack hosted by El Gouna Film festival for the first time    Small protests in Egypt dispersed by police    Tennis: Kenin battles past Stosur to claim Guangzhou crown    No crowds as Apple's iPhone 11 hits stores in China    Egypt jumps nine spots in Tourism Competitiveness Index rankings    Iran would destroy Saudi Arabia in any war:Hezbollah    Israel's Netanyahu trails rival by two seats, coalition talks loom    Ahly wins Egyptian Super Cup after beating Zamalek    Cameroon hires Toni Conceicao as national team coach    UK Labour deputy leader says Brexit stance behind effort to oust him    Egypt's developer SODIC hopes to buy 10% share in Heliopolis Housing    Rare protests in Egyptian streets after online call for dissent    Sisi Oks loan to build four desalination stations in South Sinai    Asian markets amid U.S.-China trade jitters    Egypt's tuk-tuk start-up Halan to tap Ethiopia before year-end    Preview: Plenty of promises as Egyptian league kicks off    Egypt's health ministry bans all ranitidine medication    Cairo Opera hosts closing ceremony of the Cairo International Festival for Contemporary and Experimental Theatre    Egypt, UAE cooperate over drugs combating    Allianz Egypt allots $399K to promote UNICEF's vulnerable children initiative    Felix Brych to referee Ahly-Zamalek Super Cup game in Egypt's Alexandria    Danone Nations, DECATHLON launch series of initiatives, creating change    World at risk of pandemics that could kill millions    'Egypt will not allow any country to impose its will on another in Ethiopian dam issue,' FM says    5 plant-based soup recipes to warm your body and soul    Egypt, Ethiopia at odds as talks over Blue Nile dam resume    Egypt says GERD talks with Ethiopia 'stumbled', next round in Khartoum in October    Egypt's Sisi discusses education, terrorism at national youth conference    Egypt's PM discusses details of Al-Hussein Mosque renovation    Egypt's Baron Empain Palace to be reopen after renovation    Court sentences six to death, 41 to lifetime imprisonment violence related case    Trump says he would release Mideast peace plan after Israeli elections    NBE announces EGP 2.5m prizes for handball youth teams for their world achievements    ACWA Power compares 3 bids to supply production units for Luxor power station    What do you know about gold alloying?    Jennifer Lopez evokes Egyptian outrage post her North Coast performance    Cairo's historic Tahrir square to be renovated – PM    Al-Sisi honours Egypt's scholars on Science Day    IS claims responsibility for suicide bombing killing 63 in Afghan wedding    Political parties gear up for parliamentary, senate, local elections    Unprecedented Glory: Egypt win Men's U-19 World Handball Championship    12th National Egyptian Theatre Festival fuel up public theatre art scene    Ministry of Environment has a plan for "black clouds season"    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

Silent war as banks take insurance broker's profits
Published in Amwal Al Ghad on 18 - 08 - 2019

Commercial banks' written insurance premiums are on steady increase hardly three years after the banking law allowed banks to distribute insurance.
The Insurance Regulatory Authority says the insurance premiums from Bancassurance now stand at slightly above twenty-six billion Shillings from zero in August 2017 when the Bancassurance regulations were effected.
Josephine Mutabuza, Bancassurance expert with Barclay Bank says the performance shows that banks can earn non-interest revenue from Bancassurance.
On the positive side, the increase in premiums shows that banks can act as alternative insurances distribution channels in an area previously dominated by insurance firms and their brokers.
About eighteen commercial Banks are now licensed to offer Bancassurance service. There only two banks distributing insurance services in 2017 when the Insurance Regulatory Authority and the Central Bank started implementing the Financial Institutions Amendment Act in 2016 in relation to Bancassurance.
Mutabuza says admits the Bank's venture into the insurance industry is likely to turnaround the way insurance services in the country.
But the Insurance Broker's Association of Uganda is beginning to feel the pinch as more banks take on insurance distribution. The Insurance Brokers Association Chairman, Solomon Rubondo says some of its members are losing some of their businesses to the Banks who he says seem to be acting as insurance brokers too.
While the Association's Chairman, Solomon Rubondo denied that there is an emerging rift between the banks and insurance brokers, he said Bancassurance has created what he called a disruption.
While the banks argue that the twenty-six billion shillings earned from written premiums in 2018 were from new business, Rubondo thinks the earnings were from clients shifting from Insurance brokers to Banks.
He says his Association is documenting a case where its members are losing business. Rubondo says the composition for new business is so small compared to what banks earned from Bancassurance.
Ronald Bantanda, the Chief Executive officer of Sky Reinsurance told URN that there were indeed some challenges to the insurance brokers as Bancassurance takes root in Uganda.
He says while there seems to be a level playing field, it will be up to the insurance consumer to take a decision on who should provide them with the needed service.
He argues that there are certain lines of insurance where banks will not be able to venture into because of the lack of the required expertise and experience. He says while the banks may take of the clients being served by the brokers, they(Banks) will need to understand what he calls the customer journey from a broker's perspective.
Insurance Regulatory Authority Chief Executive Officer, Ibrahim Lubega Kaddunabbi in an interview said there should be a reason for a rift between the Insurance Brokers and banks.
He says Bancassurance products should be bout through banks just like those offered through insurance brokers. Parliament in January 2016 passed the Financial Institutions Amendment Bill into law allowing insurance companies to use banks as a distribution channel for their services.
It was hoped that Bancassurance would create opportunities for growth for both the insurance and banking sectors. Uganda still has the lowest insurance penetration in east Africa at 0.8 percent of the population lowest compared Kenya's 2.93 percent, Tanzania's 0.9 percent and Rwanda's two percent.
One of the industry players that asked for anonymity said Bancassurance should be embraced by all Ugandans as long as it can be used to increase the number of Ugandan taking insurance cover.
The source said both the banks and Insurance brokers should strive to ensure that Ugandans are educated about the benefits of insurance.
Source: Independent

Clic here to read the story from its source.