Standard Chartered Bank and Sanlam Emerging Markets (SEM) have renewed their Bancassurance partnership which was initially established in 2009 for an additional period of five years, commencing in 2014.
Since the initial launch in 2009, the Bancassurance partnership has signed up more than 200 000 clients across five Standard Chartered markets, growing the business at a cumulative annual growth rate of 25 percent.
According to the bank, the renewed agreement will enable SEM to continue marketing and selling its Life and Personal Insurance products through Standard Chartered Bank’s extensive banking network in Ghana, Botswana, Zambia, Tanzania, Kenya and now also Uganda, following its addition to the list of benefiting countries.
“We are very passionate about supplying sound financial solutions to the wider African market. We remain confident that due to our collective years of experience and solid research, we have the competitive products to meet client needs in these markets. We look forward to continuing our fruitful partnership with Standard Chartered Bank,” SEM’s Executive Director for Africa Operations, Margaret Dawes said.
Through this partnership, Sanlam and Standard Chartered Bank bring a comprehensive range of insurance services to six out of the Bank’s 16 regional markets, enabling greater flexibility, security and investment options. Products include life, funeral, retrenchment and education cover.
“Thanks to Standard Chartered Bank’s network, we can now expand our reach into Uganda, a new market which boasts positive growth potential. We are committed to evolving and enhancing our Bancassurance offering and services for the benefit of our mutual customers. Through this unique partnership, we are each leveraging our strengths to make a difference in the lives of individuals, providing cover and insurance when our customers need it most,” Dawes added.
“Sanlam has proven to be an ideal partner in bringing our clients the quality and world-class insurance products and services they need to support their lifestyles and aspirations. The growth of our Bancassurance business demonstrates that this joint strategy is appealing to the personal needs of our clients, reiterating our brand promise to be here for good,” Kariuki Ngari, Standard Chartered’s Regional Head of Consumer Banking for Africa, said.
“We remain positive about the future potential of this business, and intend doubling our client numbers over the next five years. We continue to introduce innovative financial solutions which not only protect, but help our customers grow their wealth and lifestyle benefits.”
Although Africa has around 15 percent of the world’s population, the value of its insurance premiums is only 2 percent of world-wide insurance premiums, an indication of this sector’s growth and development potential.
Globally, Bancassurance has become an important offering in many countries, most especially for life insurance. In China, India and Japan, Bancassurance was only introduced in the year 2000, but has since become a highly competitive channel.
In Malaysia, Bancassurance is the country’s primary distribution channel for insurance products, and facilitates approximately 50 percent of the country’s new sales in life insurance.
Standard Chartered Bank is an international bank listed on the FTSE-25 with a presence in 68 countries worldwide, 16 of which are in Africa. SEM is the business within the South Africa-based financial services group, Sanlam, tasked with expansion into international emerging markets.