Mombasa: The bancassurance sector is experiencing remarkable growth, driven by the implementation of the Insurance (Bancassurance) Regulations, 2020, and the integration of insurance services into mobile banking platforms, creating a one-stop financial services solution for customers.
According to Kenya News Agency, the Insurance Regulatory Authority (IRA) Insurance Industry Report 2024 indicates that Kenya has 25 licensed bancassurance intermediaries. The report highlights that insurance companies in Kenya distribute products either directly or through intermediaries. In 2024, insurance agents accounted for 41.9 per cent of the industry’s total premium, insurance brokers 31.2 per cent, direct business 20.9 per cent, while bancassurance intermediaries contributed 5.9 per cent.
Speaking during the 4th Bancassurance Association of Kenya (BAK) Annual Conference in Mombasa, BAK Chairman and KCB Bancassurance Intermediary Managing Director, Dr. Aggrey Mulumbi, identified data and analytics as key drivers of the sector’s growth. The three-day conference is being held under the theme, ‘The Customer Obsession Imperative in Business Conduct to Drive Shared Value.’
Dr. Mulumbi emphasized that a deeper understanding of customers is crucial for banks in driving the uptake of insurance products through banking channels. He noted that customers have developed greater confidence in insurance services integrated into mobile banking platforms, which enable them to borrow, save, and receive instant transaction confirmations and money transfers on their phones.
‘That aspect of trust, that transactions conducted through mobile and internet banking solutions are fulfilled and seen to be fulfilled gives credibility to insurance services that are also offered through internet and digital platforms,’ stated Dr. Mulumbi. He further explained that banks, through their digital platforms, are enabling more customers to trust and embrace insurance delivered through digital and internet-based channels.
The BAK Chairman also highlighted that the trust banks enjoy stems from the reliability and transparency of their digital fulfilment processes, where customers receive instant confirmation of banking transactions. He pointed out that leveraging that trust can ensure insurance fulfilment is also delivered through digital platforms. For instance, at KCB, their mobile banking platform enables customers to access loans, investments, and insurance services all in one place.
Kenya Bankers Association (KBA) Director of Research and Policy, Dr. Samuel Tiriongo, underscored that customer-centricity remains one of the pillars of the Banking Sector Charter adopted in 2020. He noted that the growth of the bancassurance portfolio mirrors the expansion of banking services, revealing that the industry remains committed to increasing financing for Micro, Small and Medium Enterprises (MSMEs). Dr. Tiriongo mentioned that last year, the banking sector extended close to Sh326 billion, and in the first quarter of 2026 alone, they have already disbursed Sh100 billion, facilitating the uptake of complementary services such as insurance.
Old Mutual Digital Business Unit Managing Director, Isaac Nzioka, emphasized the need for industry players to collaborate in expanding insurance penetration across the country. He stated that the company has invested heavily in digital programmes aimed at making customer interactions more seamless, efficient, and cost-effective. Nzioka noted that there is an emerging younger, digitally savvy demographic that prefers a digital-first experience, although they would also like the option of speaking to someone.
He added that Old Mutual was the first company to introduce an artificial intelligence-enabled conversational chat platform, allowing customers to access information online quickly. ‘They are able to quickly find the solutions they are looking for and better understand the range of products and services we offer,’ he stated.
