Absa Bank has leaped other banks as the biggest earner from selling bancassurance.
Bancassurance, which is supervised by the Insurance Regulatory Authority, is a partnership between banks and insurance companies that allows banks to offer insurance products to their customers.
In 2024, bancassurance contributed shs225 billion equivalent to 12.56% of the insurance sector’s gross written premiums in the year.
According to figures, Absa Bank Uganda led its peers with shs39.2 billion in total premiums to leap , Stanbic Bank at shs 38.5 billion and Centenary Bank at 36.6b billion.
According to officials, Absa Bank’s double-digit growth rate of 13% and 17.46% market share was attributed to its robust product offering, a very experienced team of people, robust marketing strategies, and personalized customer service.
Bancassurance started in 2017 with the passing of the Financial Institutions Amendment Act 2016, and since then, several banks have been licensed to provide insurance services.
During the same year, life products contributed shs4.1 billion to Absa Uganda’s Gross Written Premium (GWP), realising 8.8% year-on-year growth.
In non-life products, Absa Bank last year registered a year- on-year growth of 46.6% with a Gross Written Premium of shs 5.2 billion .
According to officials, key drivers included motor insurance, fire, and allied perils, among others.
Commenting on the bank’s achievement, Absa Bank Uganda’s Head of Bancassurance, Josephine Mutabuza Hakiza, highlighted the bank’s commitment to delivering innovative and relevant financial solutions.
She credited the bank’s success to constant innovation, dedicated staff, strong partnerships, and unwavering focus on customer satisfaction.
“The bank’s success can be attributed to our strategic approach to bancassurance, focusing on innovation to deliver customer-centric products and services. By leveraging our branch network and digital platforms, we have been able to reach a wider customer base, offering them a range of affordable and convenient insurance products tailored to
their needs.”
In terms of partnerships, Absa Bank in May 2023 partnered with UAP Old Mutual and unveiled the Absa Medical Insurance policy targeting self-employed and non-salaried individuals in the drive to increase access to health insurance in Uganda.
The Absa Medical Insurance policy covers treatment for critical illness, inpatient, outpatient, optical, dental, and maternity, in addition to disability cover, funeral expenses, a wellness program, and international cover for travel outside East Africa and more.
Other insurance products that Absa Bank Uganda offers include Education Plan, Endowment Plans, and Absa Family Protection Plan.
Other non-life solutions include Absa Executive Motor Comprehensive Insurance, Fire and Allied Perils, Domestic Package Insurance, and Professional Indemnity Insurance, among others.
