Bancassurance will deepen financial inclusion, insurance penetration, say experts
Experts in Nigeria’s financial sector have tipped Bankassurance, an initiative of the Central Bank of Nigeria (CBN), and the National Insurance Commission (NAICOM), designed for banks and insurance companies seeking collaboration, as a viable tool for boosting financial inclusion and insurance penetration.
According to the experts, banks and insurance firms can leverage the initiative to access the asset and customer base of the both industries, to provide banking and insurance services, as customers would be able to access both services from one point.
Specifically, Managing Director and Chief Executive Officer, Unity Bank Plc, Mrs. Tomi Somefun, said the approach would greatly impact financial inclusion and boost insurance penetration.
She noted that insurance compliance in Nigeria is currently low, and the initiative can help get insurance services to all the nooks and crannies and creating awareness on the need for insurance covers to improve compliance.
Speaking at a media parley in Lagos, to announce the launch of Bancassurance products between Unity Bank and Veritas Kapital Assurance Plc, she said the collaboration would be very profitable and mutually-beneficial to the two organisations, as well as their teeming customers.
“We have been looking forward to this relationship and we hope that the seed that we have planted will yield multiple fruits for our organisations and our customers at large.
“Veritas can leverage on Unity Bank’s asset base and the knowledge of its existing customer base to provide insurance services easily through their various channels.
“In the same way, Unity Bank will leverage on the firm’s asset and customer base, to provide banking service for its own customers as well. We hope that the seed that we have planted will yield multiple fruits for our customers and the two organisations,” she said.
She noted that in the next 18 months, Bancassurance will be featured prominently as part of the bank’s digital banking offering, in both mobile and internet banking, and because of the financial inclusion drive, it will be offered at its agent banking location.
In his remarks, Managing Director and Chief Executive Officer, Veritas Kapital, Kenneth Edore Egbaran, said the partnership is vital given the increase in capitalisation, as players in the insurance industry have to devise means of impacting on the bottom line.
He maintained that the platform would benefit the Bank greatly, as part of the purpose is to provide good services to its customers.
His words: “The partnership will help us sell products like motor insurance, personal accident insurance amongst others, and will be mainly for the working customers. The initiative is going to be a one-stop-shop where the insurance needs of the individuals can be met.
“What this allows us to do is what is called the referral module. When customers come to the banking hall, anything they need to do with an insurance company will be referred to as Veritas Kapital. So, instead of going to look for an insurance company, they will get all their needs with us at a particular location.
“This is the era of financial inclusion and the cashless policy, which gives us a critical mass. We designed the products having all of that in mind knowing that we are going to have all kinds of customers.”
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