NCBA Group has completed the rebranding of AIG Kenya Insurance Company to NCBA Insurance Company following its acquisition of a controlling stake in 2024.
The insurer now operates as the seventh subsidiary within the NCBA Group’s portfolio.
“This rebranding to NCBA Insurance Company will enhance our market competitiveness and solidify our position as a trusted insurance solutions partner, aligning with the Group’s 2025 customer obsession mission,” stated John Gachora, NCBA Group Managing Director.
In July 2023, NCBA Group acquired a 66.67 per cent controlling stake in AIG Kenya Insurance Company.
At the time of the acquisition, AIG Kenya Insurance Company, a subsidiary of American International Group Inc. (AIG), provided access to a global network spanning over 80 countries, benefiting NCBA Group’s multinational and individual clients.
NCBA Group’s entry into the insurance sector reflects a broader trend of Kenyan lenders diversifying into bancassurance. This strategy is driven by several factors:
- Revenue Diversification: Bancassurance provides banks with additional revenue streams through commissions on insurance sales.
- Customer Retention: Offering insurance alongside banking services creates a comprehensive financial services experience, enhancing customer loyalty.
- Market Penetration: Banks leverage their extensive networks to reach underserved areas and increase insurance penetration, which remains low in Kenya (less than 3%).
- Cost-Effective Distribution: Insurance companies benefit from accessing banks’ client bases, reducing distribution costs.
- Innovation Acceleration: Banks’ technological capabilities can drive innovation in the insurance sector.
- Trust Factor: Customers trust their banks more than traditional insurance companies, potentially increasing insurance uptake.
- Regional Disparity Reduction: Bancassurance can help distribute insurance premiums more evenly nationally.
“Leveraging the strength of the NCBA brand and its established local market presence, we will deliver tailored insurance products and services to our customers,” said Stella Njunge, Managing Director of NCBA Insurance Company.
“Under this new brand identity, we aim to improve customer understanding of insurance products, demonstrate clear value, and accelerate our growth within the insurance sector.”
Kenyan Banks Engaging in Bancassurance
- Equity Bank (through Equity Life Assurance Company)
- NCBA Bank
- Standard Chartered Bank
- Family Bank (through Family Bank Bancassurance Intermediary Limited)
- Co-operative Bank (through Co-op Consultancy and Bancassurance Intermediary)
- Sidian Bank
- Absa Group
As of February 2024, the Insurance Regulatory Authority (IRA) had licensed 17 banks and six microfinance banks to offer bancassurance services.
Bancassurance gross written premiums grew from KSH 19.5 billion in 2019 to KSH 35 billion in 2023, representing a 79.4% growth. The Bancassurance distribution channel market share grew from 8.4% to 10% during the same period.
The most prevalent bancassurance model in Kenya is the pure distribution model, where banks act as agents for insurance product sales.