Kampala, Uganda | THE INDEPENDENT | Khisa Isaac | Housing Finance Bank has been named the most innovative bancassurance agent for the year 2020 at the Annual Insurance innovation awards held at Serena Hotel Kampala on December 18.
Receiving the accolade, Michael Mugabi, the Managing Director of Housing Finance Bank noted that consumers are now, more than ever expecting rapid responses and personalized care and as a result, insurance service providers ought to ensure that customer service remains a priority.
“In the year ahead, as Housing Finance Bank we pledge to maximize customer-oriented service, execute maximum competitiveness in products, business operation, and systematically establish and strengthen mid-and long-term strategic partnerships,” he stated.
The Insurance Regulatory Authority (IRA) announced the inaugural Insurance Innovation Awards early this year aimed at recognizing the role innovation plays in advancing the insurance sector in Uganda.
According to IRA, the focus of these awards is on use of new technologies, new products and services, and other advancements in the insurance industry with the aim of fostering innovation and creativity in insurance sector.
Housing Finance Bank was licensed to sell insurance products to its customers on the 13th of April 2018 by the Insurance Regulatory Authority (IRA) of Uganda. Overtime, the Bank’s market share has grown from 2.7% in 2018 to 4% in 2019 according to IRA industry data. Q1 results however show that the Bank underwrote the most general business premiums registering Gross Written Premium of Ugx. 1.2Bn.
“The sectors’ distribution revolution has given a new dimension to insurance products distribution on the market. Housing Finance Bank together with Insurance partners have crafted insurance solutions for its various customer segments thereby creating more customer satisfaction,” Mugabi added on the sidelines of the awards event.
Housing Finance Bank’s flagship product is the Group Life Insurance embedded on to the revolutionary Saveplus Savings Account. This is an incremental savings account for future investments with free embedded insurance as outlined; Life Cover of up to Shs 25M, Total Permanent Disability Cover of Up to Shs 12.5m, Medical Cash benefit and Last Expense Benefit.
The product has led to increased Insurance penetration. This is depicted by the 47% growth in enrollments over a one-year period that is from 1,671 in August 2019 to 2,464 by November 2020. It has also led to an improved customer savings culture. This is depicted by the 80% growth in account average deposits over a one-year period that is from Shs1.5m in August 2018 to Shs 2.3m by November 2020.