Beyond the conventional channels of writing insurance premiums, insurers have also built a new revenue stream of bancassurance through which they partner with banks to recruit new policyholders.
During the three months to December 2024, gross written premiums from bancassurance rose by 25.36% to UGX 225 billion from UGX 179.4 billion, contributing 12.56% to gross insurance written premiums.
Life continues to dominate in terms of written premiums under bancassurance, contributing 78.26%, compared to 21.74% for nonlife.
IRA data indicates that in the three months to December 2024, banks wrote 619,719 life policies, from which UGX 176 billion was generated, leading to a growth from UGX 140.2 billion.
On the other hand, 237,923 nonlife policies were written, generating gross premiums of UGX 48.9 billion.
IRA data further shows that banks earned a combined commission of UGX 33.4 billion, of which 78.7% was from life insurance.
Thus, in this article we review some of the banks dominating the bancassurance sector.
Absa
With a market share of 17.46%, a reduction from 19.42% posted in the three months to December 2023, Absa has the largest share of gross written premiums, according to data from Insurance Regulatory Authority (IRA).
In the three months to December 2024, Absa wrote UGX 39.2 billion from both life and nonlife bancassurance, of which UGX 34.1 billion was from life, while UGX 5.1 billion was from non-life.
The bank issued 267,891 policies during the period, from which it earned a commission of UGX 5.6 billion.
Stanbic Bank
Stanbic Bank follows in second position with a market share of 17.14%, which was an improvement from 16.63% recorded in the three months to December 2023.
During the period, Stanbic issued 231,905 policies for both life and non-life, from which it wrote a combined sum of UGX 38.5 billion, a substantial improvement from the UGX 29.8 billion recorded in the same period in 2023.
The bank earned the largest commission of UGX 6.3 billion from both its life and non-life policies.
Airtel Africa and SpaceX Announce Strategic Partnership to Launch Starlink Direct to Cell Connectivity Across AfricaCentenary Bank
Centenary Bank issued 9,719 policies in the three months to December 2024, from which it wrote a combined UGX 36.6 billion worth of premiums for both life and non-life insurance.
The bank is third under the bancassurance category in terms of written premiums, with a market share of 16.31%, a slight reduction from 16.94% recorded in the same period in 2023.
During the period, Centenary earned a commission of UGX4.1 billion, a slight increase from the UGX 3.5 billion earned in the three months to December 2023.
dfcu Bank
dfcu comes in fourth in terms of written premiums with a market share of 7.58%.
During the three months to December 2024, DFCU wrote a combined sum of UGX16.6 billion worth of gross premiums, of which UGX 12.9 billion was from life, while UGX 3.7 billion was from nonlife insurance.
IRA data also indicates that the bank earned UGX 2.5 billion in commission, a large part of which or UGX 1.9 billion was from life, while UGX 589.9 million.
Equity Bank
Equity Bank rounds off the list of the five top companies that continue to dominate bancassurance.
The bank has a market share of 6.36%, which was, however, a reduction from the 7.74% recorded in the three months to December 2023.
According to IRA, Equity Bank commands a sizeable share of the bancassurance market, with its written premiums rising to UGX 14.3 billion, which was a slight improvement from the 13.8 billion recorded in the same period in 2023.
Data further shows that Equity Bank earned a commission of UGX 2 billion.
The bank generated the largest share of its premiums from life policies, from which it wrote UGX 8.3 billion, while UGX 5.9 billion was written from non-life.
