Ecobank Group’s commercial banking business has partnered with five insurance companies to offer a range of bancassurance solutions to its SME customers across markets where it operates. The 5 companies are the Old Mutual Group, Allianz, Sunu, Sanlam and NSIA.
The bancassurance service will be rolled out in phases, starting with Kenya, Benin, Burkina Faso, Congo Brazzaville, Côte d’Ivoire, Gabon, Guinea Bissau, Mali, Nigeria, Tanzania, Togo, and Uganda. Ecobank Group’s 21 other affiliates will come onboard in the second phase.
The insurance products offered include Commercial Asset Insurance, Engineering insurance, Marine and Cargo insurance, Key Man insurance and Motor fleet Business Travel insurance. This is in addition to bespoke offerings such as Credit Insurance-Leasing, Credit Insurance-Invoice Discounting Without Recourse, and Agricultural Area Yield Insurance.
Currently, Africa’s insurance industry is valued at about Ksh. 7.7 trillion (USD 68 billion) in terms of Gross Written Premium (GWP). Prior to COVID-19, the insurance market in Africa was expected to grow at compound annual growth rates (CAGRs) of 7% per annum between 2020 and 2025. This is nearly twice as fast as North America, over three times that of Europe, and better than Asia’s 6%. This makes Africa the second fastest growing region for insurance globally after Latin America. This is attributed to steady economic growth in most countries and the underdeveloped insurance sector.
Josephine Anan-Ankomah, Ecobank Group Executive for Commercial Banking said, “Adding a comprehensive suite of Bancassurance solutions, in partnership with some of the most reputable insurance service providers across Africa, makes us a one-stop financial services hub. Furthermore, the resilience of SME businesses is enhanced through the effective risk transfer that Bancassurance provides, while our solutions also offer our valued customers the satisfaction of knowing that they will have some protection, having learnt from the painful experiences of COVID-19.”