Insurance agents want banks barred from engaging in bancassurance
09 September 2014, 14:41
Nyeri - Insurance agents in the country have said commercial banks should be barred from engaging in Bank Assurance business stating that it is against the principles of insurance.
Bima Intermediaries Association of Kenya, which is the agents' umbrella association, want the Insurance Regulatory Authourity (IRA) to intervene and stop banks from offering the services.
Bima chairman, Washington Ndegea, said he had written to IRA seeking to have the practice abolished but the body was yet to respond.
Speaking in Nyeri, Ndegea accused the banks of trying to enter into the insurance sector through the "back door" by usurping the role of insurance companies when they loan cash to clients.
ALso Read: AFC fans to access personal accident and funeral cover
“A bank should remit premiums on loan insurance of a client to an insurance company and not assume the role of insurer. This is hurting the industry and that's why we are calling on the regulator to reign in on banks engaging in such practices,” Ndegea said.
He spoke during a recruitment drive where over 200 agents from Nyeri County were registered with the association.
He added that the association had developed a code of ethics for members to follow as one way of instilling professionalism in their operations.
He noted that it would go a long way in addressing the low penetration of insurance in Kenya that currently stands at a paltry 3.1 percent.
For the latest on national news, politics, sport, entertainment and more follow us on Twitter and like our Facebook page!
Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.