Diamond Trust Bank, UAP in new partnership
DEAL: DTB Managing Director Varghese Thambi (2R) at the signing of the partnership agreement with UAP Old Mutual Insurance. COURTESY PHOTO/BUSINESS EDGE
Diamond Trust Bank Uganda and UAP Old Mutual Insurance Uganda have entered a partnership to deliver general and life insurance products and services, which effectively makes the bank a one-stop centre for both banking and insurance services, aimed at drive insurance penetration and inclusion.
Speaking at the signing of the partnership agreement in Kampala, DTB Managing Director Varghese Thambi said the collaboration marks a milestone in DTB’s commitment to addressing the evolving needs and improving the financial well-being of their customers.
“Our decision to enter this partnership comes from our dedication to addressing the evolving needs of our customers. UAP Old Mutual’s products align with Diamond Trust Bank's commitment to offer a holistic financial portfolio to customers,” said Thambi.
- He used the opportunity to call upon the Insurance Regulatory Authority of Uganda (IRA) to do more towards extending bancassurance services to the grassroots communities, highlighting the transformative potential of such a move for financial inclusion and security.
He underscored the fact that the vast network of banking agents across Uganda are potential distribution points for bancassurance products.
“There are about 35,000 banking agents across the country under the agent banking platform. Now these are potential locations for the future to distribute Bankers Insurance products as of now it is not there. I am sure the regulator will find it reasonable and make the necessary amendments in the regulations to get insurance at the doorstep of the last-mile customer,” he said.
- Current insurance penetration in Uganda stands below 1%, according to the insurance regulator. It is thus hoped that Bancassurnace will play a significant role in driving penetration, complimenting insurance companies in reaching prospective customers.
Additionally, bancassurance generated UGX179 billion in 2023, which was a 26% increase from 2022. It contributed about 11% to the gross underwritten premiums of the insurance sector by quarter three of 2023. A total of 23, 021 nonlife policies and 527,790 life policies had been underwritten, with more than UGX20 billion given in agency commissions.
Thambi said their partnership with UAP aims to break barriers and offer a comprehensive range of insurance products seamlessly alongside banking services.
Caroline Owomuhangi, the Marketing and Communications Specialist at UAP Old Mutual Insurance, emphasized their shared commitment to delivering value and convenience to customers.
She urged Ugandans to embrace insurance products, emphasizing their role in ensuring business and economic stability by mitigating risks and safeguarding investments and emphasized the importance of bancassurance in the financial services landscape, citing its significant growth and contribution to the industry.