Analysis on the contribution of Bancassurance to the insurance penetration in Uganda. A case study of Jubilee Allianz General Insurance Company

Abstract

The major objective of the study was to analyze the contribution of bancassurance to the insurance penetration in Uganda, and three specific objectives where investigated. Secondary data was used and it was obtained from Jubilee Allianz General Insurance Company. Analysis of data was done using Stata which involved the use of frequency tables, statistical tests like chi squared and multiple regression model. The significant variables where line of business, department and product name and these where observed that they are closely associated with the amount of premium collected by the insurance company through the banks. The variable year of underwriting was not significant with the amount. The results indicated that bancassurance contributed to the performance of the insurance companies through increase in clientele base, increase in premium and market penetration. The findings also demonstrated that the variable product name reduces the premiums that insurance companies receive from banks because most products bought through banks have high rates of covered events occurring and high reimbursements in the event that an event does occur. Stakeholders and enforcers must put more emphasis on strategies for increasing the number of businesses that are using banks and the variables that increase the amount of premiums collected. I recommend insurance companies to focus more of their efforts and attention on the variables that have been shown to have a significant impact on the amount of premium collected because doing so will help the industry grow significantly and raise premium collections.