Embedded insurance, particularly in bancassurance operations, is turning out to be a boost for insurance sales.
Bancasuurance is helping to foster growth in gross underwritten premiums. Data from the Insurance Regulatory Authority of Uganda (IRA) show that for the three quarters of this year, GPW generated through bancassurance amounted to UGX52bn ($14bn) amidst the COVID-19 pandemic, according to a report in The Independent. This represents 6.36% of GPW for the period of UGX818.7bn. GPW collected through bancassurance more than doubled from UGX26bn in 2018 to UGX53.6bn last year. This accounted for 5.5% of the total gross premiums of UGX973.58bn written last year. Bancassurance was introduced in the country in 2017.
Ms Mariam Nalunkuuma, the communication officer at the IRA told The Independent in an interview that the commercial banks’ move to embed insurance in their banking products explained the surging gross written premiums through commercial banks.
“Currently, banks are embedding insurance in some of their products such as loans, mortgages, agriculture and property purchase, among others,” she said.
Source: MEIR
