DTB Advocates for Bank Agents to Sell Insurance Products – The Ankole Times

DTB Advocates for Bank Agents to Sell Insurance Products

Wednesday, March 13, 2024

Diamond Trust Bank (DTB) Uganda Managing Director, Varghese Thambi, has advocated for bank agents to be permitted to conduct Bancassurance business on behalf of financial institutions, aiming to improve public access to insurance services. Thambi emphasized the importance of bringing insurance services closer to the people to enhance adoption rates among Ugandans.

Currently, regulated financial institutions are authorized to conduct Bancassurance under the Financial Institutions Act, allowing them to act as agents of insurance companies and sell insurance products to the public. DTB Uganda, recognized as the Most Innovative Bancassurance Agent in 2022, has been a significant contributor to Bancassurance growth, with approximately Shillings 11 billion worth of transactions processed in 2022.

Thambi highlighted the potential of leveraging the extensive network of over 30,000 bank agents nationwide to serve as outlets for insurance products, thereby incentivizing the public to embrace insurance services. He emphasized that insurance penetration remains low due to insufficient proximity to the public, urging for a shift towards making insurance products more accessible and appealing.

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The partnership between DTB and UAP Old Mutual Insurance Uganda aims to offer a range of general and medical insurance products and services, including Motor Comprehensive Insurance, Medical Insurance, Travel Insurance, and Domestic packages. This collaboration seeks to address customer-centric needs and promote financial well-being among clients.

Douglas Baguma, Head of Bancassurance at DTB Uganda, expressed optimism about the partnership’s potential to expand their presence in the insurance industry and provide a convenient one-stop point for insurance acquisition. Bancassurance has shown significant growth potential, generating premiums worth 179 billion shillings in 2023 and contributing 11.2 percent to total industry premiums, according to Ibrahim Kaddunabbi Lubega, CEO of the Insurance Regulatory Authority (IRA).

Caroline Owomuhangi, Marketing and Communications Specialist at UAP Old Mutual, emphasized that the partnership represents an opportunity for clients to enhance their economic activities and stability through insurance coverage.



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Jim Sykes Ocaya is the Business Editor at The Ankole Times, where he spearheads comprehensive coverage of the business landscape in Uganda. With a keen eye for market trends, financial analyses, and corporate developments, Jim ensures that The Ankole Times delivers top-notch business news to its readers. His insightful reporting provides valuable insights into the economic pulse of the region, making him a trusted source for the business community.
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