By Watson Macharia, Partner – Lloyds Africa markets Bancassurance Survey 2015 By Watson Macharia, Partner – Lloyds Africa markets

Respondents Bancassurance Consumers Banks Insures

Consumers By Age

Consumers Social Economic Class The participants were drawn from the upper to lower middle socio- economic categories representing the largest percentage. The average income was the main indicator of the social economical classes. The middle to upper class had an average net monthly income of between Ksh 50, 000 and Ksh 150,000. This is mainly because the Ugandan middle class is growing fast and they are the major clients for the insurance products.

Insurance Companies (23) Resolution Insurance AIG Uganda Insurance APA Insurance APA Life Assurance British American Insurance (BRITAM) Cannon Assurance Limited Cfc Life Assurance CIC General Insurance CIC Life First Assurance GA Insurance ICEA Lion General Insurance ICEA Lion Life Assurance Jubilee Insurance Uganda Orient Insurance Madison Insurance Occidental Insurance Pan Africa Life Assurance Takaful Insurance Of Africa UAP Insurance Fidelity Shield Insurance UAP Life Assurance

Banks (25) ABC Bank Barclays Bank of Uganda CFC Stanbic Bank Chase Bank Commercial Bank of Africa Co-operative Bank of Uganda Diamond Trust Ecobank Uganda Equatorial Commercial Bank Equity Bank Family Bank First Community Bank GT Bank Uganda Housing Finance I&M Bank National Bank of Uganda NIC Bank Prime Bank FAULU Micro Finance Bank KWFT Micro Finance Bank RAFIKI Micro Finance Bank CENTURY Micro Finance Bank Gulf African Bank Uganda Commercial Bank

FINDINGS Banks and insurers

Number of distribution agreements -Insurers

Number of distribution agreements -Banks

Mode of Compensation to Banks

Motivation -Banks

Challenges to Entry -Banks

Challenges to entry -Insurers

Preferred Partnership -Banks

Preferred Partnership -Insurers

Advisory Techniques For Bancassurance Partnership- Banks

Advisory Techniques For Bancassurance Partnership- Insurers

Effectiveness of Marketing Methods Banks

Effectiveness of Marketing Methods Insurers

Bancassurance on Technology Banks

Bancassurance on Technology Insurers

Client Segmentation Strategy Banks

Client Segmentation Strategy Insurers

CONSUMERS

Dominant Banking Institutions

Dominant Insurers in Bancassurance

Product Awareness

Effectiveness of Marketing Methods

Perception; Banks vs Insurers on New Insurance

Perception; Banks vs Insurers on Renewing Insurance

Preferred Bancassurance Classes

Overall Perception on Banks Vs Insurers

Conclusions & Recommendations Make insurance a commitment for both banks and insurers senior management by focusing on its profitability Use the insurer’s sales staff and expertise to drive the banks sales culture and, where possible and profitable, employ dedicated insurance sales wholesalers within the financial institution. Build insurance as part of and not separate from the banks sales structure to enable better, more targeted, and more successful sales activities. Review customer loyalty after the insurance buying experience in the bank and use this as a bank product cross selling opportunity. Utilize the banks customer information database more effectively to generate leads, uncover opportunities, and open up innovation in products

Conclusions & Recommendations Integrate insurance sales into banks sales goals through incentives, referral fees, productivity credits, and/or other measures to help track and encourage productivity. Connect bank sales staff via technology with insurance providers to enable answering of questions in real time and to overcome lack of knowledge at the point of sale. Allow more training time for insurance products, either on the bank premises or via electronic methods delivered directly by insurers or third parties, to increase the bank-based insurance salesperson’s knowledge and comfort. Develop marketing outreach and educational programs targeted to both financial institution clients and the general populace to increase financial institution customer and general consumer awareness of bank and credit union insurance. Use a profiling process on the front end to recognize opportunities, suggest solutions, and complete sales at the point-of-sale and/or refer appropriately.

Bancassurance Survey Series Q&A