Bancassurance as a strategy used by Commercial Bank of Africa Limited to increase uptake of insurance products in Kenya
The penetration of insurance services in Kenya stands at 2.63% of the GDP. This is considered to be very low compared to other countries in Africa such as South Africa which has a penetration of 9.94%. The penetration of insurance among the Kenyan population is also low as compared to other countries in the world. The was a case study to establish the effects of bancassurance as a strategy used by Commercial Bank of Africa Limited to increase uptake of insurance products in Kenya This design was chosen because it involves investigation of a group. The study targeted all head of departments, senior managers and branch managers (census) in all the selected branches. There is a total of 20 head of departments and senior managers and 12 branch managers. Data was collected through in-depth interviews and analyzed descriptively and presented in tables, figures and charts. This study was approved by Commercial Bank of Africa and University of Nairobi. Study findings showed that bancassurance has increased insurance uptake by increasing its distribution channels, attract new customers while retaining the old and winning the customers trust unlike the traditional agents since most customers trust banks and they frequently visit it. The insurance companies have also gained a competitive edge through tapping into existing bank customers' database in the various branches as well as using the well trained staff and innovative marketing channels such as online marketing and esales. The study recommends that insurance companies should expand the target market beyond the existing bank customers and also diversify to the rural areas where people do not visit banks or have access to the latest technology and communication channels.