Faulu Microfinance Bank records 31% growth in bancassurance to Ksh.327 million
Faulu Microfinance Bank has seen significant growth in its bancassurance business following the successful automation of its insurance sales last year.
The Bank shrugged off a tough operating environment due to the coronavirus pandemic, to record increased uptake of insurance products through its bancassurance unit.
Overall sales from the bancassurance agency have so far hit Ksh.327 million this year, a 31 percent growth compared to a similar period last year, driven by strong demand across the general and life insurance segments, as well as automation of services to boost efficiency.
Faulu, a subsidiary of UAP Old Mutual Group, a diversified listed financial services firm, also posted an increase in income and commissions from its bancassurance agency.
Faulu Bank CEO Apollo Njoroge attributed the significantly improved performance in the bancassurance agency to enhanced operational efficiency, convenience and speed of service due to automation of processes.
Last year, Faulu completed automation of its bancassurance operations at its more than 60 branches countrywide. The Rensoft system facilitates quick quotations and faster processing of insurance covers as well as processing of insurance products underwritten by UAP Old Mutual Group and other licensed insurance companies in Kenya.
“The positive results from our bancassurance operations underline the pent up need for insurance products in the market we serve. Our decision to automate our bancassurance operation is finally paying off. Our customers can access a wide range of insurance products through a simple but efficient process,” said Mr. Njoroge. We are now able to issue motor certificates in less than ten minutes at many of our branches and will soon rollout this out to all our branches countrywide.
Faulu is banking on digital innovation, expanding client base and higher uptake of insurance to strengthen its bancassurance business.
Bancassurance is the selling of life assurance and other insurance products by banks, usually through a partnership with an insurance company.