In order to boost accessibility to retail insurance products, AIICO Insurance Plc has concluded Bancassurance arrangements with Wema Bank. The Bancassurance arrangements will see AIICO Insurance leveraging on Wema Bank’s retail distribution network.
Speaking on the Bancassurance arrangements, Executive Director, Technical, AIICO Insurance Plc, Adewale Kadri said AIICO’s move is to demonstrate its commitment to increase awareness, access and deepen insurance penetration in the country.
The public, Kadri added, can now be linked to AIICO’s bouquet of retail products through Wema Bank’s digital channels anytime and anywhere in the world.
How this Bancassurance will benefit both companies
Bancassurance is a partnership between a bank and an insurance company, aimed at offering insurance products or insurance benefits to the bank’s customers. In this partnership, bank staff and tellers become the point of sale and point of contact for the customer. Bank staff are advised and supported by the insurance company through wholesale product information, marketing campaigns and sales training.
The bank and the insurance company share the commission. This partnership arrangement can be profitable for both companies. Banks can earn additional revenue by selling the insurance products, while insurance companies are able to expand their customer base without having to expand their sales forces or pay commissions to insurance agents or brokers.
AIICO Insurance Plc is a leading life insurer in Nigeria which commenced operations in 1963. The insurance firm provides life and health insurance, general insurance, investment management and pension management services as a means to create and protect wealth for individuals, families and corporate customers.
On the other hand, Wema bank was established on May 2, 1945, as a private limited liability company as Agbonmagbe Bank Limited. The bank was granted a commercial banking license and commenced banking activities during the same year. Wema Bank converted to a public limited liability company in 1987. In 1990, the bank was listed on the Nigerian Stock Exchange. Wema Bank is Nigeria’s longest surviving indigenous Bank.