With the way human life presents itself one of these days, it is difficult to predict what our future will hold.
So our lives need a lot of attention that will enable us to engage in other productive activities.
And the only thing that can help us in that is to protect our lives and everything we do, with insurance.
Insurance gives us protection against fire disasters, accidents, disease, agriculture, property and many other things as long as we are ready to protect them.
In order to enjoy a stress-free life, you need the right partner of insurance products and here in Tanzania Azania Bank has all the answers about insurance.
Azania Bank Bancassurance Services Manager, Kayanda Mabula tells us in a short interview with Citizen Newspaper about the insurance services offered by the bank.
Q: How has it become easier for Azania Bank to officially register as bancassurance agent?
A: Azania Bank, prior to licensing bancassurance services in the country, was conducting insurance services brokerage, and so upon that, it was much easier for the bank to join the community of bancansurance agents in the country.
As you are aware that in insurance, as an agent, you might work with at least two different insurance companies; i.e. one that offers general insurance (fire and motor) and the other offers life insurance services. So we, in terms of general insurance, were working with Britam Insurance company and in life insurance, we had Jubilee Life Insurance.
So, we have been offering insurance service as an agent for 10 years.
Now that the Government has passed a law requiring banks to sell insurance products in partnership with insurance companies (Bancassurance regulation in late 2019), it was nothing new for us to continue to offer this product which we started offering it more than 5 years ago.
Azania Bank obtained a license for bancassurance services in March 2020 and according to the stipulation, we were able to partner with insurance companies to sell insurance merchandises to the public.
Q: The insurance market is said to be still in its infancy in the country and you have jumped into the docket. What is the motive?
A: The insurance market is really still in its infancy and I do not remember clearly the exact market figures but I’m certain to tell that a huge number of locals are not insured.
We decided to put more effort into the insurance industry after started providing bancassurance services, by adding new insurance products to our existing portfolio.
We are offering life insurance now for anyone who is employed or self-employed, and wishes to invest in the future of his/her children education, where he/she will have to pay premiums in instalment and his/her children will continue with education even in an event of policyholder’s demise.
The life insurance has an investment segment in it, where if you want to get 50 million within five years, we will calculate how much you will have to contribute because we offer high interest rates.
It should be noted that the law directs any investment segment embedded within the insurance product, withholding tax must be deducted from its profits, now, what seems to be extremely astounding with our life insurance product, is that no tax is being deducted.
Further to this, the policyholder with this segment is likely also to accrue double benefits, first, at the event of his/her death (two or three years before the plan matures) and second, after plan’s due time.
Q: Which insurance company you work with?
A: According to the Bancassurance Act of 2019, banks are required to have about 10 insurance companies to liaise with, and we have met the standard because we work with Jubilee Life Insurance, Britam Insurance, NIC, Strategis Insurance, Alliance Insurance, ICEA Lion, UAP, Sanlam General, Sanlam Life Insurance and Jubilee General.
Q: Is there any way that your bancassurance service affect the overall performance of the bank?
A: As I mentioned earlier that most people have it wrongly that insurance businesses affect the performance of bank, but on the contrary, it helps to retain clients. For example, when a customer purchase life insurance, his/her premiums are made monthly and when he/she opt to join investment plans in some insurance products that can range from 10 to 20 years expecting to receive his/her benefits in the future, it means that the client is retained by the bank for the entire period until he/she receives the benefits.
Q: How do banks respond to claims from insurance customers?
A: In order for a bank to sell insurance, the law requires them to undergo insurance training from recognized institutions. It should be noted that the bank does not pay any insurance claims but insurers do, however, bank may chip in – on behalf of clients – to support their timely payments when claims prevail.
Q: How is this strategy going to raise capital and improve your performance?
A: Since the introduction of bancassurance, it has helped us to double our commissions, deposits in terms of insurance premiums which in turn boosted the bank’s profit and growth as well.
Q: Where do you see yourself in the next 10 years bancassurance services?
A: Azania Bank after the next 10 years, we see ourselves continuing to offer more insurance products that are designed to provide solutions to the communities we live in, this include; agricultural insurance, life insurance, medical insurance and general insurance (home and motors insurance).