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27 Nov 2019

IRA ISSUES 20TH BANCASSURANCE LICENSE TO ECO BANK

Ecobank has become the 20th Commercial bank, out of 24 commercial banks, to receive the bancassurance license from the Insurance Regulatory Authority ( IRA) of  Uganda. This now means that Ecobank can sell different insurance products to their customers on behalf of different insurance companies.

According to Annette Kihuguru, the Executive Director of Ecobank, insurance is no longer a luxury but a necessity which makes it a very important component of the banking business. Ecobank has committed to utilizing their digital capacity to ensure they reach their wide customer base.

“We have online banking services and many of our customers are embracing them. They don’t have to walk to the banking hall to do transactions. In the same way, there shouldn’t be any reason why the same customers should walk to an insurance company to buy a policy when they can do that online through the bank”, said Ms. Kihuguru.

Speaking on behalf of the IRA Chief Executive Officer, Bernard Obel, the Director Supervision welcomed Ecobank on board and confirmed to them that they have made a wise business decision especially at the time when both life and non-life insurance are growing so fast. 

“When you look at the growth rate figures, they are very interesting. Life assurance is growing at 28% and non-life is growing at 12% as per the 2018 market report. This is a step in the right direction”, said Mr. Obel.

For the rest of commercial banks (4 of them) that have not embraced the bancassurance idea, Mr. Obel confirmed that discussions are on and soon or later, all of them shall be on board.