Factors affecting premiums through bancassurance: a case study of Jubilee Allianz General Insurance Company Limited, Uganda
Abstract
The main objective of the study was to investigate the factors affecting premiums through
bancassurance. We used secondary data which was obtained from Jubilee Allianz General
Insurance Company which comprised of 629 policy holders under 13 different banks. The
analysis of our data was done using Stata where we used frequency tables, statistical tests like
one way ANOVA and multiple linear regression.
The results indicated that 504,000,000 was the average sum insured while the average premium
through bancassurance was 1,868,686. The policy holders under the fire department took up a
percentage of 60.10 and it was the same for the fire class as well. Under the product name, many
policy holders took up fire and allied perils while Dfcu bank was seen to be the bank with most
clients having policies.
The results showed that a unit increase in the sum insured would lead to an increase in the
premiums through bancassurance by 0.0013397 where as an improvement in the services
provided in the different product departments would lead to a unit increase the premiums through
bancassurance. We also see that an increase in the number of bank clients by one person would
lead to a unit increase in the premiums through bank assurance.
The researcher concluded that the sum insured is the most significant predictor of premiums
through bancassurance considering the fact that an expensive item would necessitate higher
premiums. Fire and allied perils is the department with the most policy holders because it covers
many risks while an increase in the number of policy holders of Orient Bank Limited and Stanbic
Bank Uganda Limited by one policy holder would lead to an increase in the premiums through
bancassurance. A decrease in the number of policy holders of Finance Trust Bank Limited and
Finance Trust Bank Limited by one policy holder would lead to an increase in the premiums
through bancassurance. Therefore it is important for the insurance companies to look at the
valuation of the different property to be insured so as to charge the right premium through
bancassurance and they should also improve the services in the different product departments for
example give some discounts so that people are attracted and eventually take up policies and
hence a better turnover of the premium through bancassurance