The Insurance (Bancassurance) Regulations, 2017 were recently
gazetted, giving effect to bancassurance under the Insurance Act,
2017 (which is yet to commence) and the Financial Institutions Act,
2004.
The introduction of Bancassurance in Uganda
Bancassurance refers to an arrangement where an insurance
company uses a bank's sales channels to sell insurance
products.
The Insurance Act expanded the definition of bancassurance
beyond just the arrangement between the financial institution and
the insurer or health membership organisation to use the financial
institution's channels to sell its insurance products. The
definition now includes the financial institution acting as an
agent for the insurer or health membership organisation and
entering into a group or master insurance contract as a policy
holder, with the intention that the customers (or a class of
customers) of the financial institution obtain insurance covered
under that contract.
