KAMPALA – PostBank Uganda was recently named among the top 10 banks in non-life bancassurance in the Q1-2021 insurance sector performance report.
PML Daily sits down with Mr. Frank Kalinzi, Manager Bancassurance at PostBank Uganda Limited had to chat about the benefits.
QN. When did PostBank Uganda launch Bancassurance on the product portfolio and how has it changed the bank’s fortunes?
ANS. PostBank was licensed to transact Bancassurance as an agency for partner insurance companies in the last quarter of 2018 after meeting all the requirements of both regulators – Insurance Regulatory Authority (IRA) and Bank of Uganda (BOU).
Bancassurance agency in PostBank contributes to the banks non-interest revenue stream and YTD 2021, the bank has received ugx.605m in form of commission revenue from insurers.
Bancassurance at PostBank is supervised by the Insurance Regulatory Authority of Uganda (License No. BC/005/2020.
QN. Which insurance companies are partnering with PostBank Uganda to offer the products?
ANS. PostBank is partnering with life and non-life insurance companies to sell insurance products to PostBank customers as a proposition to be a one stop shop for all financial services.
- Non-life insurance companies
- Britam Insurance Company Limited
- NIC General Insurance company Ltd
- UAP-Old mutual Uganda Ltd
- EXCEL Insurance Company Ltd
- Life insurance companies
- Prudential Life Assurance Company
- NIC Life Assurance Uganda Ltd
- UAP-OLDMUTUAL Life Assurance
- CIC Africa Life Uganda Ltd
- Jubilee Life Insurance Uganda Ltd
QN. Walk us through the products that PostBank Uganda has customized for its clients.
ANS. PostBank has several products that are sold over the counter on behalf of insurance companies, and these include education products like Somesa plus with UAP-OM and PruEdusave with Prudential.
We also have credit life protection insurance, motor comprehensive, fire and burglary insurance for business owners and travel insurance for business customers.
All PostBank customers (account holders) are eligible for the above-mentioned insurance products.
These insurance products are beneficial in a way that; life insurance products provide savings, investment and protection benefits to a customer and in case of death, the customer’s beneficiaries are given the accumulated savings to take care of them in the absence of the bread winner.
Non-life insurance policies like motor or fire indemnify the customers in case of damage or loss caused by any unforeseen eventualities.
QN. What are those enabling factors that have seen you named among the top 10 banks in both non-life and life bancassurance?
ANS. Management support has played a big role because at PBU, top management has Bancassurance as a key product to contribute to non-interest revenue and at the same time managing credit risks through insurance.
The clientele base of PostBank has given us a big pipeline to cross-sell insurance to bank customers.
Favorable regulatory environment from the Insurance Regulatory Authority of Uganda that has consistently provided support to our operations and spread the message of insurance to the wider population.
QN. Given the current economic hardships brought about Covid-19, should the public expect a product to specially address that?
ANS. Yes, we are working with an insurer to have a business guard insurance product that will take care of risks of SMEs that need to be protected in this fragile business environment due to the impacts of the COVID-19 pandemic.
QN. What are the requirements for accessing Bancassurance with PostBank?
ANS. The bank has a fully-fledged team to serve and support a customer who needs an insurance product or claims to be handled. We can be reached via our toll-free 0800 217 200 or at any branch through our insurance experts.
Bancassurance is only sold to pre-existing PostBank customers.
Upon request on a desired premium, a customer fills in proposal forms which are then sent to our partner insurance companies. (This with an attachment of proof of payment for premium). The Insurance Company then issues a policy contract with confirmation of receipt of payment of the premium; indicating that a customer is readily insured!
For non-customers, the first step is to open a bank account with PostBank and thereafter follow the above-mentioned procedures to get preferred Bancassurance policies.