StanChart partners with Sanlam to launch Bancassurance products

Dar es Salaam. Standard Chartered Bank, in partnership with Sanlam Tanzania, has launched a suite of Bancassurance products covering property and motor insurance.

Speaking at the launch the products, the bank’s CEO, Sanjay Rughani, said that his they are happy to have launched the products because Bancassurance is becoming an important factor to support the overall growth of the financial services industry in many markets.

According to him, partnership between banks and insurance companies has significant benefits to clients as it enables them to get an expanded products and services suite, and also helps from a risk coverage perspective for potential default situations in case unforeseen occurrences happen to them.

Mr. Rughani also applauded the Bancassurance guidelines that were issued by Tanzania Insurance Regulatory Authority and the Bank of Tanzania for banks and financial institutions in 2019, highlighting that they demonstrate a positive collaboration and development by the two regulatorsto enable growth and expansion in this segment through a coordinated and regulated manner.

Citing the launch of the products as a key aspect of the Maslow’s hierarchy of needs, Mr. Rughani said that Insurance coversfit into the second pillar of the basic needs which addresses safety needs – security and safety. 

“If I were to refer to the Maslow’s hierarchy of needs, what we are launching today directly fits in into the second pillar of the basic needs which is safety needs – that is; security and safety. We are launching the bancassurance product today – to not only help our clients in securing their funds and wealth, but also their peace of mind and thus their wellbeing,” Mr. Rughani said.

On his part, the head of retail banking, Ajmair Riaz, said that the bank had considered clients’ feedback on what they need in banking products before launching the Bancassurance products.

Mr. Riaz highlighted that a past survey carried out by the Bank showed that clients want Affordability, Convenience, Security and a Lifestyle. On the Security aspect Mr. Riaz highlighted that clients not only require security for their funds, but also for their physical assets.

With this data at hand, Mr. Riaz said that the Bank worked closely with Sanlam Tanzania to come up with a unique proposition for the Bank’s clients that is not only affordable, but one that goes a long way into covering them from various risks including carjacking to offering a Group Personal Accident Cover that caters for domestic workers working at residences of the insured individuals.

Speaking about the Property Insurance, Mr. Riaz highlighted the big investments that individuals make in acquiring their residential homes through mortgages and other sources and urged Tanzanians to get into a culture of insuring their residences against unforeseen risks that lead to losses.

“As a bank we are aware of how important residential property is to individuals. We know that people spend almost a lifetime to be able to afford their own accommodation. Many people have either built or bought their houses using mortgage products and other means. On average building or buying houses in Tanzania costs tens to hundreds of millions of shillings. With this kind of invest it is absolutely important to ensure that these properties are covered against the risks of fire and other calamities that can lead to losses.” Mr. Riaz said.

Mr. Riaz also highlighted unique aspects of the Bank’s Motor Insurance proposition saying that it caters to the Affordability aspect that clients want.

 Some of the features offered to clients include special aspects such as a reimbursement for hotel accommodation should the insured get an accident at a distance of a minimum of 30kms away from their home and is required to stay at accident area for a night, cover for carjacking incidences that also involve forced withdrawal of funds from ATMs by the insured victim, aswell as a reimbursement for towing charges for insured cars which go up to half a million shillings for the latter.

 Other features include self-medical cover for the insured as well as for injured passengers in his or her car at the time of the accident.

The Bank’s Motor Insurance Cover also caters for the insured’s family members should they be involved in an accident, in the insured vehicle, leading to loss of income.

 Also unique are the aspects of a reimbursement of medical costs for an injured person arising from an accident caused by the insured, such as an accident with another vehicle, motorcycle or bicycles among others.

 Mr. Riaz also said that insured individuals will get a reimbursement of up to 50,000 shillings of costs arising from car hire as their cars undergo repair in case of accidents. As the festive season approaches Mr. Riaz urged the Bank’s clients to leverage on the unique proposition offered by the Bank.

Sanlam’s CEO, Mr. Khamis Suleiman on the other hand, applauded the bank for having launched the Bancassurance product highlighting that the partnership of the two organizations will further enhance the deepening and reach of Insurance products to Tanzanians. 

He also urged Tanzanians to develop a culture of insuring themselves through medical and life insurance as well as their assets.