FINCA vows to deepen insurance uptake in Uganda
Mr James Onyutta, Managing Director of FINCA Uganda, Bernard Obel, director supervision at IRA and members from Padrepio and FINCA, IRA pose for a group photo with dummy Bancassurance licence on October 05, 2024. Photo + Ismail Musa Ladu
What you need to know:
- With over three decades of experience in financial inclusion, FINCA Uganda's extensive reach and deep connections with low-income clients, SMEs, and rural communities make it a powerful ally in extending insurance services to areas where uptake has historically been low
FINCA Uganda has become the latest financial sector player to acquire the bancassurance agency license, paving the way for increased insurance penetration in the country. This development is expected to bring a unique and hard-to-reach clientele base into the formal financial sector.
According to the CEO of the Insurance Regulatory Authority of Uganda (IRA), Alhaj Kaddunabbi Ibrahim Lubega, "Bancassurance has revolutionised how we approach the distribution of insurance services. It allows clients to access both banking and insurance solutions under one roof, ensuring convenience, broader coverage, and improved financial security for Ugandans."
FINCA Uganda's Managing Director, Mr James Onyutta, noted, "We are proud to announce the official acquisition of a bancassurance license from the IRA. This significant milestone empowers us to deliver a comprehensive suite of insurance products alongside our established financial services, greatly enhancing convenience and accessibility for our customers."
With over three decades of experience in financial inclusion, FINCA Uganda's extensive reach and deep connections with low-income clients, SMEs, and rural communities make it a powerful ally in extending insurance services to areas where uptake has historically been low.
"Bancassurance will allow us to offer a diverse range of insurance products, critical to protecting the livelihoods of our clients," said Onyutta. "This collaboration will drive increased revenue for insurance partners while minimizing distribution costs."
The IRA CEO emphasized the importance of high ethical standards in bancassurance implementation, stressing transparency, clarity on policy terms, and prompt payment of claims.
FINCA Uganda joins 19 other bancassurance players in the market, which has seen steady growth with gross written premiums increasing from Shs142.7 billion in 2022 to Shs179.48 billion in 2023.
"This partnership is set to significantly reduce policy lapse rates, as easy renewals will promote continued coverage," Onyutta added.
FINCA Uganda's bancassurance license is expected to attract new customers, deepen service penetration, and provide a broader array of financial solutions under one roof.
The bancassurance license acquisition aligns with FINCA Uganda's mission to eradicate poverty through sustainable and scalable solutions informed by the insights and needs of communities.
"We are committed to providing our clients with a broader array of financial solutions, ensuring their needs are met under one roof," Onyutta emphasized.
As FINCA Uganda embarks on this new journey, its clients can expect a comprehensive suite of insurance products, including life, health, property, and agriculture insurance. This expanded offering is poised to drive increased financial inclusion and protection for Ugandans.
The Insurance Regulatory Authority of Uganda has welcomed FINCA Uganda into the bancassurance space, urging the institution to maintain high ethical standards and prioritize customer-centric services.
With FINCA Uganda's extensive network and experience in financial inclusion, this partnership is set to make a significant impact on Uganda's insurance sector and the lives of its citizens.
