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What Insurance Companies Stand to Benefit from Bancassurance

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The issue of whether or not bancasurance should be allowed a foothold in the industry has attracted attention in times past, especially soon after the recapitalization exercise. Many operators kicked against it, noting that if the ‘monster’ was allowed to stay, the industry would be swallowed up by banks. This was more so as the latter had made significant in-roads into the hitherto exclusive preserve of the insurers. One of those that opposed the move was the National Council of Registered Insurance Brokers (NCRIB) which expressed fear that the practice would erode public patronage of insurance brokers in preference to banks – owned insurers and brokers. The council had protested vehemently to the Central Bank of Nigeria (CBN) on what it called an unethical practice among banks in the selective ways they engaged brokers. According to the NCRIB, the practice as it then stood, was a deviation of the rules of universal banking as practiced else where. It stated that part of the prescription of universal banking was that no bank should compel its customers to do business through any particular insurance company, including those owned by the banks. Unfortunately, the council stated, this golden rule was being violated. In an interview earlier granted this writer, Biyi Otegbeye, managing director of Regency Assurance plc, allayed the fear of some insurers, especially the stand alone insurers that bancassurance was a good omen after all. He argued that notwithstanding the branch network of banks over insurance firms, the gains of the practice will not have any undue advantage over the insurers. He stated that in doing business, the insuring public would be guided by choice and in the quality service delivery of the operators. After over three years of practice, its gains have been unfolding in fascinating ways. While speaking at a recent forum, Adeyera Adeyemo, managing director of Continental Reinsurance plc, painted a glowing picture on the gains of banc assurance not only to insurance firms but also to banks.
Adeyemo explained that banc assurance was a mutually beneficial practice which should be encouraged to survive, stating that the ability to tap into banks’ huge customer bases stands it out as its major incentive. “The extensive customer base possessed by banks is considered to be ideal for the distribution of mass-market products such as individual life assurance and householders/house owners insurances. On the other hand, insurers can make use of the wide reach of bank customers to categorize potential clients in detail according to their needs and values. With increasing sophistication on bancassurance operations, some insurers can also focus on the high-net-worth segment, which offers greater potential for wealth management business”, he said.
Apart from the ability to tap into new customers groups, another area is escaping from the high cost of captive agents, prompting insurers to look into alternative channels. In some cases, teaming up with a strong bank can help to fund new business development opportunities and boost public confidence in the insurer.
He highlighted some of the benefits to the industry to include tapping into  huge customer base of banks, especially as the bank’s client base may well be ‘virgin territory’ for the insurance company and so a new source of business.
Explaining further, he said that bancassurance helps in reducing reliance on traditional agents by making use of the various channels owned by banks. The reinsurance chief added that the practice also bring about shared services and cost with banks, thereby reducing the overhead cost of stand alone operators. He stressed that combining the bancassurer’s business with the other business of the insurer can produce economies of scale in administration costs (including capital expenditure). This in turn allows the insurer to improve profitability and to price future products with narrower margins, which helps to make the insurer’s products more competitive;
Adeyemo further expressed support for the practice along the line of developing new financial products more efficiently in collaboration with their bank partners. The economy of banc assurance operations allows the insurer to offer products which are not feasible through the insurer’s existing channel. For example sales cost incurred under existing channels may force premium rates for a product to be uncompetitive, so the product is not sold whereas the cost via the banc assurance channel may be low enough to make it feasible.
The insurance boss opined that if encouraged by all, the practice would significantly help in establishing market presence rapidly without the need to build up a network of agents. This is in addition to obtaining additional capital from in order to improve their solvency and expand business as well as leveraging on the bank’s brand to expand their market
He added that the concept was of mutually beneficial ways to both banks and insurance companies. He said both bank and insurer has great opportunities to learn and make improvements in their own operations.  In the present disposition of global economic meltdown, the Continental Re boss explained that bancassurance was critical to making both banks and insurance firms the added opportunity of getting exposed to each other’s distinctive management styles, objectives and measures. These benefits come when either company can implement changes as a result of the learning process. However, he stated, “in the wake of the global financial crisis, the bancassurance model has been called to question and its continued relevance and benefits being challenged.”
Adeyemo expressed the fact that the model is not entirely without fault. To buttress his point, he stressed that in Europe, there has been some developments which tended to erode public confidence. For instance, he said financial services giant, Fortis and its banking subsidiary ABN Amro recently broke up. Recently also, he added, “German insurance group Allianz sold its interests in Dresdner Bank. Across the channel, UK insurer Standard Life has also announced the sale of its banking arm to Barclays. Although not quite a bloodbath, there has certainly been some bloodletting among European bancassurance practitioners in the wake of the global financial crisis.”
Financial crisis notwithstanding, insurers continue to rely on banks as an important force to distribute their products and grow their business. The reputation of banks and financial institutions has been severely tarnished in the current financial turmoil. With so many casualties in the financial crisis, can banc assurance weather the global financial storm? What can banks and insurance companies do to boost confidence and regain trust from customers at a time when alleged cases of mis-selling of financial products over the bank counters abound?
Adeyemo stressed that in the past few years, “sales of investment-linked products have experienced significant growth, bolstered by stock market growth. But now, the global financial crisis has taken its toll on bancassurance business, particularly on sales of investment-linked products.” He mentioned the case of Hana HSBC Life Insurance Company in Korea is worth mentioning at this point which is a joint venture union between Hana Insurance of the Hana Financial Group (HFG) and HSBC Insurance (Asia-Pacific) Holdings Limited.
Pointing the way forward, he said these examples achieved remarkable progress despite the turbulence that had beset the financial industry over the intervening months. “We have seen premiums grow by 36 percent and policies by 11 percent, beating the market average,” he said. According to sources close to them, he explained, capital had been injected to fuel expansion and described Hana HSBC Life Insurance as a “stable platform whose growth had outperformed the industry.”
The global financial crisis may have done its worst but the reinsurance chief emphasized the fact that there’s light at the end of its dark tunnel. Interestingly despite this crisis insurance companies have continually identified a number of benefits arising from the concept of bancassurance.

 

 


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Court Jails ‘Colonel’, ‘Major’ of Global Money-Laundering Ring

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A “colonel and a major” in a “worldwide highly sophisticated money-laundering syndicate on a breathtaking scale” have been jailed for nine years and 7 and half years respectively.

Court Jails ‘Colonel’, ‘Major’ of Global Money-Laundering Ring

Ejike Francis Ogbuefi (42) of Clonard Road, Crumlin, Dublin 12, and Steven Silvester (32) of the Paddocks, Morristown, Newbridge, Co Kildare, were both convicted of directing the activities of a criminal organisation following a trial at Dublin Circuit Criminal Court in February.

Ogbuefi was also convicted of 32 counts of money laundering and seven of conspiracy to launder money.

The jury also convicted Silvester of five counts of money laundering, two of attempted money laundering, four of conspiracy to launder money and one of using a false instrument.

Both defendants had no previous convictions here or in another jurisdiction.

The court heard that both men were assessed to be above mule herders and money mules in the operation, with Ogbuefi having a more active role.

During the sentence hearing, Judge Martin Nolan suggested to the investigating garda that the men were a “colonel and a major”, which Det Garda Steven Kelly agreed with.

Imposing sentence on Friday, the judge said both men were involved in the offending and played certain roles.

He noted that the scheme’s ambition was to “get accounts to launder illicit monies” which were “undoubtedly the product of criminal behaviour” and that third parties unknown to the court suffered as a result.

“Both men were reasonably experienced in how the banking system works” and aware of its weaknesses which they tested, sometimes successfully, the judge said.

The judge said he had considered the mitigation and there was a “good chance” the men would not reoffend in future, but that the court could not be certain.

The judge noted that money laundering is a “serious problem” and the court often dealt with cases of people who provided their bank details to be used in these schemes.

“These bank accounts are absolutely necessary for all fraud, because monies have to come to earth somewhere,“ the judge said, noting that the defendants’ main role was to procure bank accounts so that money could be sent to others who profited.

He imposed on Ogbuefi a sentence of nine years and imposed a 7½ year sentence on Silvester, whom he considered to be at a lower level.

Kelly told Seoirse Ó Dúnlaing, prosecuting, that the Garda investigation looked at various bank accounts, transactions and online communications.

Evidence suggested both men were receiving requests, often from phone numbers in Nigeria, to launder money from different types of frauds.

Kelly agreed with Conor Devally, defending Ogbuefi, that his client is from Nigeria and his family is law-abiding.

Garda Kelly agreed with Maurice Coffey, defending Silvester, that his client became involved in this criminality some time after his arrival in Ireland in 2015 and had no record of shopping in high-end stores or trappings of wealth.

It was also accepted that Ogbuefi appeared to have a more active role than Silvester.

Defence counsel told the court their clients accepted the verdicts of the jury and were remorseful.

Testimonials were handed to the court on behalf of both men.

Mr Devally asked the court to view Ogbuefi as being “appointed to a position of local authority in a wider organisation”.

Mr Coffey said Silvester was under pressure and desperate at the time.

He asked the court to consider that his client did not come to Ireland to get involved in this offending, but fell into temptation at a time of vulnerability.


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Activist Warns against Rising Junk Food Culture in Nigeria

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Nnimmo Bassey, environmental activist and food sovereignty advocate has raised concerns over the growing influence of junk food culture and global food politics on Nigeria’s food systems.

Activist Warns against Rising Junk Food Culture in Nigeria

Nnimmo Bassey, environmental activist

Bassey warned that the increasing consumption of highly processed foods poses serious risks to public health, cultural identity, and national food security.

He made these remarks on Thursday while speaking at the Sustain-Ability Academy lecture on Food, Power and the  Politics of Hunger, organised by the Health of Mother Earth Foundation in collaboration with the University of Port Harcourt.

“Food is not just for sustenance; it is central to our identity, our relationships, and our traditions,” he said.

He explained that traditional diets reflect the diversity of Nigeria’s ethnic groups and have historically fostered unity within communities.

Bassey traced the evolution of food systems in Nigeria, highlighting how colonialism, commerce, and conflict have reshaped local diets.

He referenced the Nigerian Civil War as a turning point when food was weaponized, leading to widespread malnutrition and long-term dietary changes, particularly in the Eastern region.

The activist criticized the rapid rise of fast food consumption, describing it as a product of modern society’s demand for instant gratification.

According to him, fast food outlets use sensory stimulation, bright lighting, loud music, and constant visual entertainment to distract consumers from questioning the nutritional value of what they eat.

“People leave with more than just a full stomach, they carry heavy metals, artificial colourings, and harmful substances in their bodies,” he said.

Bassey also expressed alarm over the increasing presence of genetically modified organisms (GMOs) in Nigeria’s food system.

He argued that such products, often introduced without sufficient scrutiny, could have long-term health and environmental consequences.

He further cautioned against the role of political leaders in normalizing unhealthy consumption patterns.

“When top politicians publicly consume junk food and sugary drinks, they send a dangerous message that such habits are acceptable or even desirable,” he said.

At the heart of his argument is what he described as “food colonialism” a system driven by global power dynamics, where economic pressures, debt, and cultural influence shape local food choices to benefit multinational corporations at the expense of local farmers.

Bassey called for a “decolonization” of food systems across Africa, urging governments and citizens to prioritize indigenous foods, protect seed-sharing traditions, and resist policies that undermine local agricultural practices.

He also challenged prevailing narratives around hunger, questioning whether food insecurity is truly a result of low productivity.

“In countries like Nigeria, nearly half of all food produced goes to waste. The issue is not just production, but distribution, policy, and power,” he explained.

The session concluded with a call for urgent reforms to ensure fairness, resilience, and sustainability in food systems, with a focus on supporting smallholder farmers and addressing the structural causes of hunger.


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Gartner Forecasts Surge in AI-powered Public Services

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At least 80% of governments will deploy artificial intelligence (AI) agents to automate routine decision-making, enhancing efficiency and service delivery by 2028.

This is according to market research firm Gartner, which highlights a growing shift toward digital governance, where AI-powered systems will increasingly handle repetitive administrative tasks, such as processing applications, managing public records and responding to citizen queries.

“Government chief information officers are under growing pressure to embed AI into decision-making capabilities rapidly and responsibly,” says Daniel Nieto, senior director analyst at Gartner. “The rise of multimodal AI, alongside conversational and agentic systems, has expanded what public organisations can automate, understand and anticipate.”

The Gartner report comes as South Africa is moving to embed AI into public administration, with early use cases emerging across service delivery, disaster response and internal operations, even as full-scale deployment of autonomous “AI agents” remains some years away.

The country’s National AI Policy Framework, released in 2024, has set the direction for adoption, with a comprehensive national policy expected by 2027.

Implementation is likely to follow from 2027 onwards, positioning the country for a more structured and regulated rollout of advanced AI systems across departments.

While South Africa has yet to deploy AI agents at scale, government and research initiatives indicate that agent-like systems are already taking shape.

Global use cases

Globally, governments are rapidly deploying AI agents to automate public services and internal operations, shifting from simple chatbots to systems that can execute tasks and coordinate workflows.

In the US, federal and city agencies are using AI agents to handle citizen queries, draft documents and manage call centres, while in China, autonomous systems are being integrated into administrative processes and urban management.

European governments are piloting AI-driven tools in policing and public service delivery, and in emerging markets, agentic platforms are being used to improve disaster response, financial inclusion and digital identity systems.

However, Gartner notes that fragmentation is one of the most persistent barriers to AI value in government.

According to a Gartner survey of 138 respondents from government organisations worldwide between July and September 2025, 41% of respondents cited siloed strategies and 31% cited legacy systems as key challenges to adopting and implementing digital solutions.

“Technology modernisation alone has not resolved these issues,” says Nieto.

The market analyst firm says as AI transitions from experimentation to being deeply embedded in decision-making, governance approaches must also evolve. It points out that traditionally, AI governance has centred on managing models, data and algorithms.

However, it states that decision intelligence (DI) shifts this focus towards the governance of decisions themselves; for example, on how they are designed, executed, monitored and audited. This shift in governance is especially critical in government, where public legitimacy relies on transparency and fairness, the firm explains.

Measurable impact

The Gartner survey found that 39% of respondents cited improved service and citizen satisfaction as primary reasons to invest in building citizen trust.

The firm notes that DI offers a structural foundation for operationalising this trust by making decision pathways explicit and auditable.

“By governing decisions, rather than just isolated AI components, governments can better balance automation with human judgement, particularly in high-stakes or rights-impacting contexts,” says Nieto. “Regulated industries and governments cannot rely on opaque ‘black box’ systems for consequential decisions. DI elevates explainability from a technical requirement to a governance imperative.”

Because of the need for transparency in decision-making, Gartner predicts that by 2029, 70% of government agencies will require explainable AI (XAI) and human-in-the-loop (HITL) mechanisms for all automated decisions that impact citizen service delivery.

Gartner explains that XAI and HITL designs are foundational to public-sector DI. These mechanisms ensure decision logic can be inspected, explained and challenged. Because of XAI and HITL, humans also retain authority over exceptions, appeals and high-risk cases, and accountability is preserved even as automation increases, it adds.

While efficiency remains important, Gartner says citizen trust in government’s ability to provide effective services is becoming a key driver of digital transformation. Fifty percent of government respondents cited improved citizen experience as one of their top three priorities.

“As AI and decision intelligence increasingly automate and streamline service delivery, the traditional notion of ‘citizen experience’ evolves,” says Nieto.

“When citizens receive what they need from the government automatically, direct interactions may decrease, making trust in the system’s reliability, fairness and transparency even more critical. Because trust is so imperative in these situations, the predictive capacity to anticipate potential needs could reshape how government digital services are delivered.”

 


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