To increase the use of life insurance products in the nation, KCB and National Bank of Kenya concluded a distribution agreement with Sanlam Life Insurance.
Customers will be able to access a comprehensive range of financial and investment products within the 300 branches combined of the banks through KCB Bancassurance Intermediary Limited (KBIL) and National Bank Bancassurance Intermediary Limited (NBIL), their respective bancassurance franchises.
As a result, Sanlam’s life insurance products will be distributed by KBIL and NBIL. Additionally, the partners have launched an endowment policy called Nawiri, a savings and investment product that promises a return after a certain amount of time.
Also, they have created a more robust Last Cost Cover, a type of burial insurance that helps with mourning expenses, as well as an improved education policy called Elimisha Plus Cover. Nawiri has a tax relief component, and the bereavement cover offers a tax-free death benefit in the event that a policyholder passes away, making this a good investment choice.
The managing director of KCB Bank Kenya, Mrs. Annastacia Kimtai, stated, “We are reimagining insurance by leveraging the existing offerings and rethinking the distribution model to ensure we take the products to the uninsured population across the counties and every corner of the country.”
The proposal is anticipated to increase KCB and NBK’s participation in the insurance market, hence increasing Kenya’s life insurance penetration rate, which is currently estimated to be 1.3% by the industry watchdog Insurance Regulatory Authority (IRA).
The CEO of Sanlam Kenya Group, Dr. Nyamemba Tumbo, stated: “This relationship is helpful for clients who want to receive services from a one-stop-shop like a bank since they will now be able to access a full suite of financial services to address their long-term investment needs. To provide a better customer and product experience, we will thus make use of our distribution and processing capabilities, increased brand awareness, and increased levels of public trust, stated Mr. Tumbo.
Godfrey Kiptum, Commissioner of Insurance and Chief Executive Officer of the Insurance Regulation Authority, praised the collaboration between the three organizations and noted that, since the Bancassurance model of distribution was introduced in 2004, it has been essential in assisting our customers’ pursuit of their financial goals.
Given the growing customer awareness of protection and the importance of having a solid financial plan, Mr. Kiptum, the industry regulator, said, “We welcome this move as we see it as an opportunity to meaningfully improve bank customers’ financial security, lives, and businesses.”