BAK Calls for Inclusive Regulation to Accelerate Bancassurance Growth
BAK chairperson Aggrey Mulumbi (Right) addressing the Media at the 3rd Annual BAK Conference held in Mombasa. (Photo By Mwakwaya Raymond)
By Harrison Kivisu
Email, thecoastnewspaper@gmail.com
The Bancassurance Association of Kenya (BAK) is urging sector players to use the recently enacted Insurance Professionals Act as a springboard to fast-track the development of a more inclusive and robust financial ecosystem.
Speaking at the 3rd Annual BAK Conference held in Mombasa, the BAK chairperson Aggrey Mulumbi said unlocking the full potential of bancassurance required leveraging existing banking infrastructure, including extensive branch networks, mobile platforms, and internet banking.
“The enactment of the Insurance Professionals Act is a positive step, but its omission of bancassurance intermediaries from professional representation and certification frameworks is a missed opportunity.”
He emphasized the need for clear, consistent, and inclusive regulations that support innovation while ensuring consumer protection.
“To ensure a level playing field, regulations must apply equally to all players. This is essential to foster healthy competition and drive insurance penetration across the country.”
The chairperson underscored that the evolution of regulation must go hand in hand with industry transformation.
“As financial services increasingly converge across platforms, banks, and technology providers, we need a collaborative and adaptive approach.”
To accelerate sector growth, he called for stronger partnerships among insurers, reinsurers, banks, regulators, and policymakers.
He advocated for the adoption of risk-sharing frameworks such as profit-sharing models and digital underwriting tools to better serve the next generation of consumers.
“Over the past few years, the bancassurance sector in Kenya has made significant strides. We’ve seen steady growth in premiums, wider insurance penetration, and greater awareness of the value bancassurance brings to the financial ecosystem.”
Arthur Oginga, group chief executive officer of Old Mutual, echoed the sentiments saying that digital platforms were transforming how insurance firms engage customers, adjudicate claims, and distribute products.
“Innovations such as big data, artificial intelligence, and advanced analytics are enabling us to better understand customer needs, deliver more personalized solutions, and accelerate service delivery,” he said.
The CEO called for greater collaboration among banks, insurers, and technology firms to unlock efficiencies and expand access to insurance.
“Alarmingly, the uptake of professional financial advice remains low. Many people still rely on word of mouth, television, or the internet for financial information. Despite this, optimism persists.”
Meanwhile, Insurance Regulatory Authority (IRA) director of supervision Talai Musee cautioned banks against the non-remittance of premiums to insurers, saying such practices harm the industry and the economy.
“Insurance companies need advance payments to ensure timely claims settlement,” said Musee, urging banks to uphold professionalism in handling insurance operations to prevent financial losses.”
Currently, only 24 bancassurance intermediaries have been officially registered in Kenya.
This year’s BAK conference, held under the theme “Bancassurance and Collaboration: Strengthening Partnerships for Accelerated Insurance Penetration,” brought together key industry stakeholders to chart the future of bancassurance in Kenya.
