THE contribution of insurance industry into the economy will register new milestone following banks move to step out of its core banking services and entering into partnerships with insurance companies thus pushing up insurance penetration in the country.
Currently, Tanzania has the lowest insurance penetration in East Africa, which stands at less than 1 per cent.
Recently, NMB rolled out bancassurance services in the country being a major positive impact on the delivery of insurance services to areas that insurance registrants have not been able to extend their operations.
With the widest network of over 225 branches spread in almost all district councils in the country, Mr Mponzi said the NMB is positioned to provide bancassurance services to reach more people both customers and non customers.
An entrepreneur and victim of fire that gutted Tegeta, Nyuki market recently Mr Godwin Rwechungura testified to the workshop participants how NMB Bank through bancassurance services assured him compensation of the losses.
“I have been working and growing with NMB bank for over 10 years through various loan products which are insured. The hope to get back to business after incurring huge losses was rejuvenated” he said.
For an entrepreneur, insuring business against all forms of risks and losses is no longer an option and can give confidence to remain in business.
NMB Bank through all its branches now offer all insurance retail products from insurance partners, namely, but not limited to Motor, Health Insurance, Property, Life, bonds and Agriculture Insurance.
Through NMB Bank, Customers and Non Customers will now be able to get insurance covers from six insurance companies- Reliance, Sanlam Life, Jubilee, National Insurance Company, Zanzibar Insurance Company and UAP Insurance.
NMB Bank will offer all insurance retail products from insurance partners, namely, but not limited to Motor, Health Insurance, Property, Life, bonds and Agriculture Insurance.
On her part, the NMB Dar es Salaam business club chairperson, Bahati Njomba said after getting knowledge on NMB bancassurance services, decided to insure her business as well as providing other insurance products to her children.
“I started borrowing only 5m/-several years ago and have managed to grow with the NMB bank that now can borrow up to 150m/-,” she said while urging other entrepreneurs to insure their businesses.
In his remarks at the launch of NMB partnership with insurance companies, Tanzania Insurance Regulatory Authority (TIRA) Commissioner, Dr Mussa Juma said bancassurance is a new distribution channel that must be embraced to boost the penetration of insurance in the country.
“We are in support of the bank’s initiatives to further enhance uptake of insurance products in the country. By leveraging on NMB’s extensive branch network, more people will get access to insurance covers,” he said.
Bancassurance is the relationship between the bank and insurance company that simplifies the offering of insurance service to customers.
Speaking with entrepreneurs from the NMB Dar es Salaam Business Club in Dar es Salaam over the weekend, the Bank’s Chief of Retail Banking, Filbert Mponzi, said that businesses are exposed to different kinds of risks and possible losses, which can only be rescued through insurance cover.
“Accessing finance from the bank is one and important aspect for business growth but insuring against risks is of paramount importance and guarantee its sustainability,” he said mentioning fire, theft and other catastrophic losses as some of the risks that most businesses are prone to.
Mr Mponzi was speaking in a workshop that attracted over 300 entrepreneurs who forms the NMB Dar es Salaam business club.
Through NMB bancassurance services, Tanzanians can buy insurance cover and process claims through its branches.
“Our customers can now do all their banking and insurance business under the Umbrella of NMB bank Plc. NMB will provide buying & claims processing as well as after sales services to consumers.”
Mponzi noted further that NMB’s Bancassurance service would largely provide existing and potential customers with an alternative channel to access a range of our tailored insurance solutions for their personal insurance needs while they go about their banking, and most important is that all these financial services will all be available under one roof.
“While insurance services have improved over the years in the country, we still see increased appetite by consumers embracing insurance covers. We see this as an opportunity for us to bring services more closely to Tanzanians”.
The Senior Manager, NMB Bancassurance, Martin Massawe told entrepreneurs’ workshop said apart from offering efficient and reliable insurance services, NMB widest network guarantee customers services close to their surroundings.
“I appeal to the general public to purchase the right insurance covers from NMB Bank and avoid being taken by surprise with unexpected life events,” said Massawe.
Through NMB Bank, NMB Customers and Non Customers will now be able to get insurance covers from six insurance companies -Reliance, Sanlam Life, Jubilee, National Insurance Company, Zanzibar Insurance Company and UAP Insurance.
The bank’s decision to enter into insurance industry is aimed at bringing insurance services closer to the people.
“The health and general wellbeing of our customers is important to us, as it is protection of their properties and wealth. So we combined this interest with the opportunity that came with the change of law that enabled banks to sell insurance services,” he noted.
