KCB ventures into insurance to propel growth

Kenya Commercial Bank Group has diversified its services into insurance business as it looks to propel its growth.

Through collaboration with a range of main insurance companies, KCB Insurance Agency (KCBIA) is positioning itself to offer insurance services with a focus on life insurance and pensions business.

Chief Executive Joshua Oigara said the target is to avail the insurance services to 98 of KCB’s 187 branches as it awaits a full rollout countrywide.

“So far, the Bank has successfully rolled out a five-year strategic plan that has helped KCB consolidate its position towards realisation of its goal of being the preferred financial services provider”, said Mr Oigara.

The Bank’s net profit for the period ended December 2014 stood at Sh16.8 billion, a figure that is expected to rise twofold as the lender refocuses on selling insurance.

BANK INSURANCE MODEL

KCB also plans to pull traffic towards its insurance business through the called Bank Insurance Model. The model is designed to enable KCB customers buy policies using their accounts.

Mr Oigara said reliance on income interest alone, cannot grow the business to its set targets.

Further, he added that a bank assurance software recently acquired will ensure efficiency since all insurance agency functions are automated.

Insurance Regulatory Authority (IRA) CEO Mr Sammy Makove the agency has an automated insurance model and the traditional insurance model which will run simultaneously to maximise the potential of the agency.

“As we grow, the proposition of inclusiveness should be put in place to cover more Kenyans living outside the insurance bracket. Alternative distribution models should be applied on top of the traditional methods,” said Mr Makove during the launch.

The agency will offer seven varieties of insurance products among them are; property, liability, motor, healthcare, agriculture, micro, and marine. Others are risk management and professional insurance advisory services, plans are underway to launch Life Insurance products later in the year.

“For us, partnerships are meant to make financial services more accessible to the general population.

“This is a crucial part of our effort to make serious progress in addressing the deep poverty experienced by millions of citizens across the East African region and beyond, many of whom remain outside the formal financial system,” concluded Mr Oigara.