Analysis of Bancassurance and its impact on the performance of the insurance industry in Uganda
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The study intended to assess the impact of bancassurance to the performance of insurance industry. In order to achieve this, three specific objectives were investigated. The study used a cross sectional study design with the applicability of both methods of data collection. The information was gathered from 10 insurance companies located with Central Uganda Kampala district among the employees. The data obtained was analyzed and presented at two levels that is to say univariate and bivariate analysis. A sample of 43 respondents was achieved. With frequency distribution results, results indicated that the majority of the respondents (65.1%) were male, majority of respondents (90.7%) had attained tertiary education as their highest level of education, majority worked with prudential insurance company (37.2%), majority of the respondents (67.4%) claimed that the performance of their insurance company was good. A large proportion of the respondents claimed that their insurance company dealt mostly in sell of term life insurance (30.2%) and patterned with Equity bank, UBA, Stan chart & Centenary (23.3%). The results showed that majority of the respondents claimed that bancassurance did not contribute to the increase of their sales (42.9%), majority of the them agreed “agreed and strongly agreed” that bancassurance contributed to their market penetration (39.5% and 2.3%). Majority of the respondents disagreed that bancassurance contributed to the increase in premium (41.9%), majority of the respondents agreed that the increase in the company`s clientele base was contributed to by bancassurance at 38.1%. With challenges faced by bancassurance, results indicate that poor management was disagreed to be a challenge faced by bancassurance by the majority (41.9%), majority of the respondents (69.8%) agreed that lack of knowledge and awareness regarding bancassurance by the public is a challenge of bancassurance and burden of distribution was also agreed upon by the large proportion of the respondents (69.8%) being challenge faced by bancassurance. The results indicated that bancassurance contributed to the performance of the insurance companies through increase in clientele base, increase in premium and market penetration. This relationship was statistically significant. Therefore, the researcher recommends the insurance company to ensure that their employees understand the company`s rituals, establishing regular check-in and offer complete training management so as their workers gains skills and experience in the managerial services which are related to bancassurance.