NMB and CRDB Bank dominate bancassurance trade
NMB Bank’s retail banking chief Filbert Mponzi (centre) confers with Insurance Commissioner at the Tanzania Insurance Regulatory Authority, Dr Mussa Juma (left) during the launch of ‘Bancassurance’ products and services by NMB recently. At left is the bank’s senior Bancassurance manager, Martin Massawe. PHOTO | THE CITIZEN CORRESPONDENT
What you need to know:
NMB Bank PLC transacted the largest share at 52.4 percent, followed by CRDB Bank PLC which accounted for 36.6 percent during the period from July to September 2021.
Dar es Salaam. Two commercial banks handled about 89.3 percent of the entire life bancassurance business while the rest transacted the remaining share.
NMB Bank PLC transacted the largest share at 52.4 percent, followed by CRDB Bank PLC which accounted for 36.6 percent during the period from July to September last year, according to Tanzania Insurance Regulatory Authority (Tira) quarterly performance report.
The report published recently showed that total premium collected by agents in respect of long-term bancassurance business amounted to Sh36.3 billion, equivalent to 76.5 percent of the industry gross premium.
Since its inception 2019, the bancassurance allows commercial banks to sell insurance services. In the non-life bancassurance business, three commercial banks handled 74.6 percent of the entire non-life bancassurance business, while the rest transacted the remaining 25.4 percent.
“CRDB Bank transacted the largest share of non-life bancassurance business accounting for 37.1 percent followed by NMB Bank which contributed 29.1 percent and Absa bank Tanzania Limited which contributed 8.4 percent,” read part of the report.
Commenting on the report, CRDB Bank head of bancassurance Ms Moureen Majaliwa said the bancassurance serves as the prominent intermediary in terms of selling and provision of insurance solutions to bank customers and non-bank customers.
“As one of the key players in the industry, CRDB Bank has a large network through its branches that are spread across the entire country,” she said.
Ms Majaliwa added that the bank has invested heavily in equipping staff in all branches to serve customers as per the regulatory requirement.
Tira public relations and communications officer Mr Oyuke Phostine said; “The life assurance in the country is still low as shown by our previous market reports.
This informs there is untapped potential for both players in the market.”
Mr Oyuke added in respect of bancassurance agents, the authority still urges all licensed banks to transact insurance business to venture more into the life assurance as that would increase the uptake and penetration of insurance in the country.
