NBS bank on Friday launched its bancassurance product, whereby customers will be able to find solutions that provides both banking and insurance products.
The product which has been formulated under three companies, thus, NBS, Nico General and Nico Life is aimed at among other things, addressing the insurance penetration gap in the country.
NBS Chief Executive Officer, Kwanele Ngwenya, said the bancassurance product is a drive in addressing customer needs.
Ngwenya said under the bancassurance, the bank has introduced a wide range of unique products.
“These products have been priced to suit the pockets of Malawians from all walks of life. We are able to offer competitive pricing because our insurers, Nico Life and Nico General, are the most experienced in this country and are attached to world class underwriters through group synergies,” he said.
Ngwenya said NBS bancassurance will be a game changer on the market.
Guest of honour at the event, Reserve Bank of Malawi Director of Pension and Insurance Supervision, Chimwemwe Kachingwe, said NBS bancassurance launch marks an important development where the bank and insurance companies will forge strategic alliances to attain synergies for mutual business advantage.
She said the launch is in line with the registrar’s strategic objective of promoting safe, sound and stable financial sector.
“In the bigger picture, promotion of a safe and sound financial system goes beyond supervision of financial institutions as it also entails deepening of the financial sector and creation of a conducive regulatory environment to support the government’s financial inclusion agenda.
“Financial inclusion can be achieved in a number of ways, among them, through financial literacy, competitive pricing and more importantly, the establishment of user-friendly channels of distribution like bancassurance,” Kachingwe said.
She further said, in terms of product distribution, banks play a very unique role of being able to reach out to high net worth individuals and also the population in the underserved markets.
“Because of this fact, statistics around the globe show that provision of insurance products and services through banking institutions has grown significantly over the years.
The NBS bancassurance will among others provide Ufulu funeral plan, Mtetezi tobacco insurance, Mlimi crop insurance and Denga insurance targeting shop owners and trading customers.