Jubilee Insurance, Diamond Trust Bank team up in Specialist Model Bancassurance Deal

East Africa’s leading Insurance Company, Jubilee Insurance has partnered with Diamond Trust Bank (DTB) to to launch the specialist or referral model in Bancassurance. The move is set to promote Life insurance which has low penetration in the country with around 500,000 policies actively in force.  The deal was formally signed today between Jubilee Insurance and Diamond Trust Bank. Jubilee Insurance Kenya Chief Executive Officer Patrick Tumbo said the introduction of the referral model of Bancassurance with DTB will help in improving access to life insurance products among Kenyans.

“Having one of the fastest growing middle-class populations in the world, Kenya has lead the way in the East African region when it comes to the steady development of Bancassurance. However, the general lack of awareness of life insurance has given the need to promote it effectively through the retail channel of banks and this cannot be over-stated,” Said Mr. Tumbo.

“This innovative model aims at providing the highest quality service levels and swift delivery to retail customers by deploying specially trained financial advisors. Insurance savings plans will be matched to adequately meet each customers’ financial profile and needs,” added Mr. Tumbo.

Diamond Trust Bank Group CEO Nasim Devji says that individual life insurance plans, which provide an effective means to save for the individual customer have not been a focus for banks.

“The referral model will greatly enhance the capability to reach more customers. Banks offering individual insurance plans through their insurance agencies have had low to medium success with high customer dropout rates. The referral model has therefore emerged as the more sustainable and viable choice, as has been the witnessed in many countries across Asia, Europe and Latin America,” said Mrs Devji.

Jubilee’s life insurance products on offer through the DTB branches will provide their valued customers the peace of mind that comes with the much needed financial protection to their loved ones in case of untimely demise. Along with securing their family’s future, Jubilee’s Career life and Fanaka also give the customer an extremely easy, systematic and disciplined way to save. The customers’ savings also continue to grow over the years as Jubilee Insurance pays out some of the highest returns on its policies in the industry through its prudent investment guidelines.

Career Life plan enables customers to build a fund over a period of time so as to enable them to pay for their child’s school fees as and when they fall due. Additionally, it ensures that the customer’s child’s fee is paid even in the untimely demise of the policyholder during the entire term of the policy.

Jubilee’s Fanaka policy enables customers to build a fund over a period of time to meet any financial need such as building a home, purchasing a car, cater for major life ceremonies like marriages or graduations or even provide capital for business.

As an example, a customer aged 30, buying these products for a period of 15 years by putting aside only KES 6,500 per month, would provide his/her family guaranteed financial protection of up to KES 1 million (in case of untimely demise), while receiving approximately KES 1.85 million at maturity.

In its December 2013 analysis, TechNavio estimated that the global bancassurance market will grow at a CAGR of 5.98 percent between 2014 and 2018. Much of this growth will come from the adoption of more enhanced, diversified product portfolios offered by banks, particularly in the face of further banking industry regulation that is certain to limit the profitability of lenders’ more traditional business lines. Moreover, it would appear certain that Asia and Africa will be the principal drivers of this growth, while Europe remains strong but stagnant.

In Africa Bancassurance has also been on the rise. In a report by Finaccord it is estimated that the most popular product in the region is credit life insurance, which has been tied in with mortgages and personal loans; this is closely followed by household insurance and motor insurance, both of which are combined with specific lending facilities.