In Summary
  • Last year, Consolidated Bank advertised for the position of bancassurance manager with the bank saying the hire would be expected to make the product a significant contributor to the bank’s profitability.
  • Insurance penetration in Kenya remains low but Mr Kiyai reckons that with some loan products requiring insurance of the collateral, banks are poised to win clients.
  • Bancassurance has taken form in Kenya with several banks and insurance companies partnering to offer various products within the banking halls.

State-owned Consolidated Bank of Kenya is set to open its bancassurance arm in the first quarter of the year as it seeks to diversify revenue streams and get out of loss-making territory.

Thomas Kiyai, the chief executive officer, says operationalising the unit will give the lender room to grow non-funded revenue as it also counts on potential Sh3.5 billion capital injection to increase its loan underwriting deals.

“Before end of March, we will be launching our bancassurance subsidiary,” he said.

“There is still a huge opportunity and I believe commercial banks like us have the capability to replicate the successes in banking business into backassurance.”

Last year, Consolidated Bank advertised for the position of bancassurance manager with the bank saying the hire would be expected to make the product a significant contributor to the bank’s profitability.

Insurance penetration in Kenya remains low but Mr Kiyai reckons that with some loan products requiring insurance of the collateral, banks are poised to win clients.

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