Ugandan commercial banks earned 12 billion shillings (3 million USD) in commission as insurers during the 3rd quarter of 2021, the local press reported on Wednesday (January 26th). This result shows that bancassurance has become a new source of revenue for financial institutions.
Since 2017, the Uganda Insurance Regulatory Authority (IRA) has licensed 20 commercial banks to operate as insurers. An initiative that aims to expand the distribution of insurance services nationally and continentally.
According to the latest IRA statistics, banks recorded insurance business worth 56.9 billion shillings (USD 16 million) in gross written premiums for life insurance business. This allowed banks to earn 8.99 billion shillings (2.5 million USD) in commission.
Thus, four banks were distinguished in this insurance activity. These are Absa Bank, Stanbic Bank, Centenary Bank and PostBank.
Absa recorded the highest income with Shs 2.5 billion (USD 711,051), followed by Stanbic Bank with Shs 2.1 billion (USD 597,283) and Centenary Bank with Shs 1.4 billion (USD 398,188). PostBank ends up in fourth place, earning Shs 629 million (USD 178,900) in commission.
Separately, banks underwrote non-life insurance business worth 19.6 billion shillings (5.5 million USD) in premiums, earning 2.96 billion shillings (841884.74 USD) in commission.