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
“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
“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.