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JUBILEE INSURANCE, DIAMOND BANK BANCASSURANCE DEAL

Nairobi, 15 February 2016…, 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.

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