Zambia National Commercial Bank – ZANACO has signed a Bancassurance Agreement with Prudential Life Insurance Zambia in order to offer ZANACO customers with Prudential’s diversified life protection and health insurance products that suit a wide range of customers with scope for more insurance solutions at later stage.
The strategic partnership aims at maximizing benefit for Zanaco’s more than 1.2 million customers in its 69 branches across the country by leveraging Prudential Assurance market-leading insurance products and services.
ZANACO’s Chief Executive Officer Henk Mulder told the Zambian Business Times – ZBT at that the launch of the partnership is an important development in which two players from different Financial Institutions forge a strategic alliance for Mutual business advantages.
“Bancassurance is one of the key pillars of our diversification strategy complement to our core business. The competitive finance sector coupled with regulatory charges make the case for diversification of our services imperative. We have to think on our feet and re-think our strategies if we are to remain relevant to the changing need of our customers,” he said.
‘In the initial stage, we will distribute Prudential’s overseas travel insurance and hospital cash plan, as an embedded value added service to our private and preferred customers respectively. We will increase scope by adding more insurance solution, which will be stand-alone solution in later stages,” Mulder added.
The partnership will also be vital in contributing to the development of a sustainable financial market and help improve the uptake of insurance products in Zambia. The uptake of insurance is growing in Zambia, but that there is still need for more people to access these services. Available statistics show that insurance penetrate in Zambia is at 1.11% (excluding micro insurance) and that Zanaco is happy to play a role in trying to increase it.
And prudential Managing Director Krishnaswamy Rajagopal says the strategic alliance builds on the establishment capabilities, leading presence and complementary strengths of prudential and Zanaco. “This bancassurance partnership bolsters strong wealth management offering that meets the evolving needs of customers with word class products, high quality life protection solutions and services. We are confident that our partnership will increase access to affordable insurance solutions and upsurge of financial inclusion in Zambia,” he said.
At the same function, ZANACO Board Chairperson Charity Lumpa said that the government is spending a lot of money in trying to rebuild markets that were burned down by unknown people when that could have been covered by the insurance company if these Small and Medium Enterprises (SMEs) insured their businesses. She adds that if people are able to pay for life insurance cover, it could be easier for then to have quick access to medical attentions as well as funeral covers in cases of accidents.
She said that government should consider making insurance especially for SMEs mandatory as is with third party vehicle insurance. This will help government save money in cases of fire out breaks where government has to rebuild market as well as pay marketers who lose properties in such sabotage incidences.