Sanlam Life Insurance has announced a bonus of 8 percent to all its policy holders after the insurance company recorded a hefty 142 percent growth in its business in 2018 with a 158% growth in assets.
Sanlam’s staggering performance in life business is well above the industry growth which stood at 118 percent in the same financial year and signals the rebirth of Life Insurance following the demerger from General insurance business.
Sanlam Life Chief Executive Officer Mr. John Lintari attributed the growth to increased awareness in the market for life insurance and the entry of banks as new channels of distribution mainly through bancassurance.
Since October 2017, IRA has licensed 17commercial banks to operate as bancassurance agents and there are more partnerships that continue to be developed between insurers and banks to ensure accessibility to insurance products.
“2018 was an excellent year for Sanlam, due to increased awareness in the life insurance market place coupled with the entry of commercial banks into the sector which provided a solid alternative distribution channel” John Lintari said during a press conference held at their offices in Bugolobi.
Lintari said that Sanlam’s success is mainly attributed to the continuous work of the company’s committed intermediaries, mainly agents, who for the past 5 years have been winning big at the annual the agent of the year awards organized by the association of insurers due to their outstanding performance. “As we celebrate 10 years in the next few months, we will continue to offer quality products and services that have enhanced value to our stakeholders in a fair and transparent way in order to fulfill the goals of our business objectives”
During the same period, Life insurance business sector grew by 129% a clear indication that Life business in on the upsurge and may soon become the biggest contributor to growth in the entire insurance industry.
According to Lintari, the biggest challenge the industry is facing is still low awareness and general mistrust in relation to compensation and payment of claims. “In order to further increase insurance penetration from the current0.84% of the GDP, the industry as a whole must continue to educate and sensitize the market on the benefits of insurance especially when misfortunes occur. The industry must also honor their obligations on time so that the market can gain confidence in insurance products and services”
