General News
What Insurance Companies Stand to Benefit from Bancassurance
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.
Kashifu Inuwa, the Director General of the National Information Technology Development Agency (NITDA), has called for a fundamental shift in Kano State’s economic strategy, urging stakeholders to embrace innovation, technology and collaboration as the drivers of growth in the 21st century.
Speaking at the Kano Startup Weekend, Inuwa acknowledge Kano’s long-standing reputation as the commercial nerve centre of Northern Nigeria and the wider Sahelian region, noting that its history of trade, enterprise and human capital provides a solid foundation for future growth.
He emphasised that while these strengths powered Kano’s success for centuries, the modern economy now offers even greater opportunities through innovation and technology.
He described innovation as the process of transforming ideas into impactful solutions through commercialization, stressing that when ideas are effectively deployed, they create value, solve societal challenges and generate sustainable economic growth. He noted that Kano’s large market, strategic location and vibrant entrepreneurial culture place it in a strong position to take advantage of innovation-driven opportunities.
According to him, “Innovation is the process of taking an idea from inception to impact. Invention on its own is a cost centre, but when you commercialise an idea, when you turn it into a product or service that solves a real problem and creates value, that is when you begin to drive economic growth and inclusion.”
He noted that the state hosts numerous degree-awarding institutions across federal, state and private ownership, providing a strong base for human capital development. However, he expressed concern that these institutions often operate in isolation from industry, with research outputs rarely translating into commercial or industrial applications.
He explained that innovation does not happen in silos and stressed the need for a strong, interconnected ecosystem that brings together academia, industry, startups, entrepreneurs and government.
According to him, universities should conduct research informed by industry needs, industries should leverage research to improve productivity and competitiveness, and startups should serve as the bridge that converts ideas into market-ready solutions.
He further encouraged entrepreneurs to leverage technology to build businesses that can grow beyond local markets, explaining that innovation-driven enterprises have the power to scale rapidly, create jobs and position Kano competitively at both national and global levels. According to him, digital platforms and emerging technologies now make it easier for startups to reach wider markets and develop solutions that were previously unimaginable.
“You can start your business here in Kano, but your thinking must be global from day one. Technology has removed barriers. With the right skills and platforms, a startup in Kano can build solutions that serve not just Nigeria, but the world,” he noted.
Highlighting NITDA’s ongoing interventions, the Director General outlined the Agency’s commitment to building national innovation capacity through targeted human capital development programmes. He cited the Digital Literacy for All (DL4ALL) initiative, which aims to equip Nigerians across all segments of society with essential digital skills, and the 3 Million Technical Talents (3MTT) programme, designed to produce a pipeline of globally competitive technical professionals in areas such as software development, data analysis and emerging technologies.
He said, “Through DL4ALL, we are ensuring that Nigerians at all levels have the basic digital skills needed to participate in the digital economy, while 3MTT is deliberately building a pipeline of globally competitive technical talents who can drive innovation, create jobs and attract investment.”
He explained that these programmes are key pillars of President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritises skills development, innovation, job creation and inclusive economic growth as pathways to national prosperity. According to him, empowering Nigerians with digital and technical skills is essential for building a resilient economy capable of competing in the global digital landscape.
“President Tinubu’s Renewed Hope Agenda is about investing in people, empowering them with relevant skills and creating opportunities for inclusive growth. At NITDA, we are using digital skills and innovation as tools to translate that vision into real economic impact for Nigerians,” he said.
Inuwa urged all stakeholders in Kano to work together to build a functional innovation ecosystem that can unlock the state’s vast potential. He expressed confidence that with the right mindset, strong collaboration and sustained investment in digital skills and innovation, Kano can reclaim its historic leadership role and emerge as a major innovation and entrepreneurship hub in Nigeria and beyond.
General News
Sterling Bank Renewable Energy Colloquium Urges Stakeholders to Unlock Nigeria’s Clean Energy Potential
Sterling Bank Limited on Monday convened stakeholders in the renewable energy industry to explore strategies for accelerating Nigeria’s transition to clean energy and boosting economic growth.
L-R: Mr. Ayo Ademilua, President, Renewable Energy Association of Nigeria; Dr. Jekwu Ozoemene, Group Executive, The Alternative Bank; Mr. Biodun Ogunleye, The Honourable Commissioner, Lagos State Ministry of Energy and Mineral Resources; Mr. Dele Faseemo, Group Executive, Coprporate and Investment Banking, Sterling Bank; Engr. Bem Samuel Anyangeuor, Representative, Honorable Minister of Power and Mr. Oluwaseyi Okunnuga, Group Head, Renewable Energy & Sustainability Finance, Sterling Bank at the just concluded Renewable Energy Colloquium held in Lagos recently.
The colloquium, themed “Beyond the Grid: Unlocking New Frontiers in Renewable Energy”, was held in Lagos and brought together policymakers, financiers, and industry leaders to deliberate on priority areas for action.
In his opening address, Managing Director and Chief Executive Officer of Sterling Bank, Mr. Abubakar Suleiman, represented by Mr. Dele Faseemo, Group Executive, Corporate and Investment Banking, said the bank would focus on regulation and financing to expand access to energy.
He noted that energy access remained critical to supporting economic growth and achieving Nigeria’s ambition of building a one trillion-dollar economy.
Delivering a keynote address titled “Scaling Electrification in Nigeria: The REA Impact”, Managing Director of the Rural Electrification Agency (REA), Dr. Abba Aliyu, represented by Mr. Abba Hayatudden, said Nigeria required about 26 billion dollars to bridge its energy deficit.
Aliyu explained that the energy transition strategy integrates grid, mini-grid and off-grid technologies to achieve universal, reliable and sustainable energy access while aligning with national development and climate goals.
Minister of Power, Mr. Adebayo Adelabu, represented by Engineer Samuel Ayangeaor, commended Sterling Bank for convening the dialogue.
He said renewable energy and rural electrification were central to the Federal Government’s Renewed Hope Agenda.
“The Ministry of Power has continued to expand electricity access to underserved communities to drive economic growth, foster industrial activity and create jobs across the nation,” Adelabu said.
Lagos State Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye, highlighted the state’s efforts in renewable energy, including the ongoing two-gigawatt grid-scale solar project.
He described it as the most ambitious energy transformation ever undertaken by the state.
Chief Executive Officer of Sterling One Foundation, Mrs. Olapeju Ibekwe, urged participants to move beyond communiqués and act with intention to deliver meaningful impact.
The colloquium featured panel sessions on financing and scaling green energy solutions in Africa, among other discussions.
Cellulant, a leading Pan-African payments company enabling seamless digital transactions across Africa, has appointed Mr. Freddie Oduro as its new Country Manager for Ghana.
Mr. Freddie Oduro, New Country Manager for Ghana.
Freddie’s appointment is a key step in Cellulant’s broader strategy to deepen its presence in priority markets by accelerating the acquisition of in-country enterprise businesses and strengthening its position as the payments partner of choice in Africa.
Freddie brings over a decade of commercial and strategic leadership experience in the telecommunications and financial services sectors, with expertise in sales, business operations, and market expansion.
In his new role, he will drive merchant acquisition, strengthening partnerships, oversee collections and payout operations, while ensuring strong internal controls and regulatory compliance.
He joins Cellulant from Payaza and previously served as Sales Director at Cellulant, where he helped significantly expand the company’s footprint in Ghana.
Cellulant has been powering payments in Ghana for leading brands in sectors like e-commerce, utilities, oil and gas and retail, helping them offer their customers a wide range of secure digital payment options.
“We are happy to welcome Freddie back to the Cellulant family,” says Richard Gesimba, Chief Revenue Officer at Cellulant. “Ghana remains a critical market for us, with immense potential driven by rising digital payments adoption.
“As we sharpen our focus on in-country enterprise customers, Freddie’s leadership and industry insight make him the ideal person to steer our Ghana operations.”
The appointment comes at a transformative time for the company. Following a strategic shift between late 2023 and early 2024, focused on streamlining operations, doubling down on enterprise payments, and strengthening customer intimacy, Cellulant achieved profitability in 2024 and continues to build on this momentum.
The company now processes close to 4.5 million transactions daily for businesses across Africa, reinforcing its position as a fintech leader.
“I am honoured to return to Cellulant and lead the Ghana team at such a defining moment,” says Freddie, Country Manager for Cellulant Ghana. “Ghana presents a tremendous opportunity.
“We will ramp up our efforts to sign on more local merchants, strengthen our compliance and control frameworks, and introduce innovative solutions like Tingg Edupay, our automated school fee management solution that eliminates reconciliation delays by validating payments in real time and instantly updating student accounts.
“We will build on Cellulant’s strong foundation to deliver real value, reliability, and economic impact.”
Ghana’s digital payments sector continues to grow steadily, supported by increased mobile money usage and a progressive regulatory environment. Between January and October 2025, the value of mobile money transactions hit about GH¢ 3.6 trillion, up sharply from GH¢ 2.37 trillion in the same period of 2024.
Registered mobile money accounts now exceed 79 million, demonstrating strong consumer and business confidence in digital financial services and in turn creating many opportunities for payment innovation.
This leadership appointment underscores Cellulant’s commitment to building a resilient, high-performance organisation geared towards playing a pivotal role in the next era of Africa’s digital economy.
Looking ahead to 2026, Cellulant plans to further enhance the user experience on its payment platform, Tingg, and expand its footprint across Ghana.
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