Insurance Regulatory Authority (IRA) has granted United Bank of Africa (UBA) a license to start Bancassurance.
UBA becomes the 10th Bank to be granted license to operate Bancassurance which IRA’s Assistant Director Operations, Bernard Obel, said would promote insurance industry in hard to reach areas since banks have outlets in almost every township.
“One of the requirements for Bancassurance is to have a principal officer. We know these banks have senior and experienced officers among their staff. It is a matter of assigning one to be in charge and we are sure this will increase insurance penetration in Uganda economy,” Mr Obel said.
Mr Joseph Balikuddembe, UBA’s executive director, said it would be easy for them to promote insurance in the country considering the clientele base they have. “We just need to interest our clients into insurance and explain what insurance is all about so that they can embrace it,” Mr Balikuddembe said.
Mr Protazio Sande, IRA assistant director, market and development, said insurance growth rate was at 19.2 per cent. He attributed the slow growth to limited knowledge on insurance and ignorance of citizens on insurance benefits.