Barclays subsidiary banks on life cover to enter insurance

Barclays Bank of Kenya Managing Director Jeremy Awori during an investors' briefing in August 2014. Barclays Africa has launched an insurance subsidiary to tap into the huge potential in Kenya’s life cover market. PHOTO | SALATON NJAU |   NATION MEDIA GROUP

In Summary

• In February, the bank received an approval from the Insurance Regulatory Authority to offer education, credit life and personal accident underwriting.
• “Our entry into the Kenyan life insurance market provides us with a strong platform to further expand into East Africa,” said Mr Willie Lategan, the chief executive of wealth, investment management and insurance at Barclays Africa.

By NATION CORRESPONDENT
More by this Author

Barclays Africa has launched an insurance subsidiary to tap into the huge potential in Kenya’s life cover market.

In February, the bank received an approval from the Insurance Regulatory Authority to offer education, credit life and personal accident underwriting.

“We have been lobbying and trying to get the regulations opened up because we felt it was a little unfair that our local competitors could sell those products to their customers and generate revenues but we were not allowed to do that,” the Barclays Bank of Kenya managing director, Mr Jeremy Awori, said.

Kenya is the fifth market in which Barclays Africa has set up a life insurance business. The others are South Africa, Botswana, Mozambique and Zambia. Barclays Africa plans to use Kenya as its launch pad into the East African region.

FUNERAL COVER

“Our entry into the Kenyan life insurance market provides us with a strong platform to further expand into East Africa,” said Mr Willie Lategan, the chief executive of wealth, investment management and insurance at Barclays Africa.

Funeral cover for the immediate and a number of extended family members will also be issued through the new subsidiary.

A fast growing middle class, increased consumer awareness and a diversified range of products on offer have seen the outlook on the future of the Kenyan insurance sector remain strong.

“The life insurance market in Kenya is registering 20 per cent year on year growth but our sector still represents a tiny fraction of the country’s rapidly expanding economy,” said Mr William Mara, the managing director of Barclays Life Assurance Kenya.

Insurance premiums in Kenya were last year valued at Sh162 billion.

Analysts say the insurance industry is beginning to register accelerated growth due to low levels of penetration in the country, which stands at only about three per cent.