The Bank of Kigali Group, which has Rwanda’s largest bank in terms of assets, on Thursday launched BK General Insurance, a new subsidiary that will offer ‘bancassurance’ services.
Bancassurance refers to the sale of insurance products and services by banking institutions.
The insurance venture fits BK Group’s objective of building a universal banking model where its clients can access a wide range of financial services under one roof.
Speaking at the launch, the group’s CEO, Diane Karusisi, said BK General Insurance allows BK to operate as a one-stop centre for financial services.
“We believe this is a convenient way of serving our customers. For instance, a customer will be able to get a mortgage loan from BK and have the asset insured by BK General Insurance, two core services obtained under one roof, which is safe, convenient and fast,” she said.
Karusisi emphasized that the group doesn’t only want to enable people to create wealth, but to safeguard it as well.
“From ‘financially transforming lives’ through BK financial services, we are now adding a service that will be ‘safeguarding your wealth’ through BK General Insurance,” Karusisi said.
BK General Insurance’s chief executive officer is Alex Bahizi, who has for many years been BK’s Head of Legal and Recovery Services.
He said the new subsidiary will provide a breath of fresh air in an industry with a hugely untapped growth potential.
“We look to offer a whole new service experience to customers – an efficient, timely and seamless service. We promise a short, clear and customer-friendly claims process,” Bahizi said.
BK General Insurance offers all general insurance products including motor private and commercial comprehensive cover and third party policies, as well as fire cover for property.
“We also offer transportation cover, medical for accidents and health and engineering cover for plant and machinery among others. We are also working on new products that we will announce soon,” Bahizi explained.
BK General Insurance will look to improve the country’s insurance penetration levels from the current low 2.8% to at least 10% in the short term.