Kampala, Uganda | THE INDEPEDENT | DFCU bank has become the 8th bank to receive a certificate from the insurance regulator, Insurance Regulatory Authority (IRA-U) to start selling insurance products at its 67 branches countrywide. This is backed by the Financial Institutions Amendment Act 2016.
During the handover ceremony at IRA offices in Kampala, the regulator’s CEO, Ibrahim Lubega Kaddunabbi, said the demand for simple insurance products in Uganda is on the rise and that partnering with banks to offer them to their clients would boost the industry’s penetration which has been stuck at about 1% for many years, lower than slightly over 2% average rate for the East African region.
DFCU’s Executive Director, William Sekabembe, said the new development comes at a time when the financial sector in Uganda is growing and that this would give it another boost.
He said the bank’s shareholders would benefit from the new product through commission earned from selling policies.