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.
Economic and Financial Crimes Commission (EFCC) has partnered with the National Space Research and Development Agency (NASRDA) to deploy advanced space and geospatial technologies in investigations and asset management.
Ola Olukoyede, executive chairman of the EFCC,
The move is expected to deepen transparency, strengthen asset recovery and curb economic sabotage according to a statement by Dele Oyewale, head, Media and Publicity, EFCC.
He said that the partnership was formalised through the signing of a Memorandum of Understanding (MoU) on Thursday in Abuja
The agreement is aimed at strengthening inter-agency collaboration, particularly in the areas of investigations, asset tracking and fraud risk assessment, marking a new phase of cooperation between the anti-graft agency and Nigeria’s space research and regulatory authority.
Speaking at the signing ceremony, Ola Olukoyede, executive chairman of the EFCC, described the agreement as a practical demonstration of the power of collaboration among government agencies.
He noted that closer cooperation would make it easier for institutions to effectively deliver on their statutory mandates.
According to Olukoyede, the MoU clearly defines the responsibilities of both agencies and establishes a framework for sustained cooperation.
He disclosed that a special monitoring and implementation team would be constituted to ensure the effective operationalisation of the agreement and to periodically review its impact.
“We will put a team together that will monitor the operationalisation of this MoU and also review the effectiveness of the platform from time to time.
“When agencies work together in the spirit of collaboration, it not only enhances efficiency but also encourages other ministries, departments and agencies to explore similar partnerships in the overall interest of national development”, he said.
Explaining the specifics of the partnership, the EFCC chairman said NASRDA would provide advanced technological tools to boost the Commission’s investigative capacity and asset tracking, while the EFCC would deploy its expertise to support the agency in fraud risk assessment.
“We will support you in the area of fraud risk assessment, and you will support us in promoting our investigative capacity.
“Where our eyes cannot get to, with the aid of your technology, we will be able to get there”, Olukoyede said.
He noted that the collaboration would be particularly beneficial to investigations into illegal mining activities, which have been linked to economic sabotage and rising insecurity in parts of the country.
“With the technology you are going to support us with, we will be able to identify some of these areas,” he added.
Olukoyede further expressed optimism that the partnership would significantly enhance the EFCC’s asset management processes, stressing that asset recovery remains one of the core pillars of the Commission’s mandate.
He explained that recovered assets are scattered across the country and exist under different legal statuses, including interim and final forfeiture.
“In some of these places, we may not have enough personnel to physically secure the assets. But with your support, we will be able to deploy geospatial technology and asset tagging devices to monitor both movable and immovable assets in a transparent and accountable manner”, he said
In his remarks, Matthew Adepoju, director-general and chief executive officer of NASRDA, welcomed the partnership, describing the MoU as a major milestone in the pursuit of justice and regulatory compliance within Nigeria’s space ecosystem.
Adepoju stressed that space-related activities are strictly regulated in developed economies and should be treated with similar seriousness in Nigeria, particularly in view of the potential misuse of satellite assets.
“You cannot go anywhere in Europe, continental America or the Far East and be doing business in the space ecosystem without the country ensuring that you are doing the right thing.
“We know for a fact that some satellite assets are being used negatively in driving insecurity in the country”, he said.
He also raised concerns over the use of satellite-mapped data on Nigeria’s natural resources to aid illegal activities, especially illegal mining, which he identified as one of the drivers of insecurity.
DalaHill Law Practice and the Bank of Agriculture (BoA) have signed a Mutual Accountability Framework (MAF), marking a milestone in the launch of a climate finance initiative funded by the African Climate Foundation (ACF) and valued at US$100,000.
According to a statement by the firm, the signing took place during a kickoff ceremony at the BoA headquarters in Abuja and formalised the roles, responsibilities and shared commitments of both institutions in delivering the project. The framework was signed by Ayo Sotinrin, BoA Managing Director, and Mohammed Hamza, Managing Associate at DalaHill.
The ACF-funded initiative is designed to support BoA’s institutional transition towards climate-aligned agricultural finance. Central to the programme is the establishment of a Clean Energy Delivery and Innovation Unit (CEDIU), a dedicated function that will integrate climate risk considerations, environmental data and sustainability principles into the bank’s strategy, operations and investment decision-making.
Under the initiative, BoA will also be supported to develop Clean Energy Access Systems and Climate Finance Development Frameworks, alongside a pipeline of bankable, climate-aligned agricultural projects.
These projects are expected to attract domestic and international capital into the sector, contributing to efforts to bridge Nigeria’s estimated $247.3 billion financing gap for its green energy transition.
Speaking on behalf of DalaHill, Mohammed Hamza described the initiative as a pivotal intervention in Nigeria’s agricultural and climate finance landscape. He said the firm is acting as a trusted adviser, working with institutions to deliver catalytic and transformative solutions.
According to him, DalaHill is deploying a multidisciplinary technical team to support BoA’s transition into a climate-aligned institution capable of attracting finance for scalable, investment-ready agricultural projects.
He highlighted the strategic importance of the project, noting that while ACF has traditionally focused on renewable energy, climate alignment within the agricultural sector is critical to driving Nigeria’s broader energy transition. He added that the initiative represents ACF’s first climate finance grant promoting agriculture in Nigeria.
In his remarks, Sotinrin expressed appreciation to the project partners and acknowledged longstanding gaps within Nigeria’s agricultural finance ecosystem. He reaffirmed BoA’s commitment to driving systemic change by attracting climate-aligned expertise, strategic funding and increased national and international attention to the sector.
Sotinrin also noted that the initiative aligns with the Federal Government’s climate and sustainability agenda, referencing Nigeria’s participation at an ongoing global climate sustainability conference in Abu Dhabi.
He further highlighted strong government backing for BoA’s transformation, including presidential approval in October 2024 of a US$1 billion recapitalisation plan aimed at strengthening the bank’s capacity to support national development.
DalaHill Law Practice is a full-service commercial law firm headquartered in Abuja, with a strong track record in advising on economically catalytic projects across sectors including energy, infrastructure, finance, trade and emerging markets.
The firm is known for structuring complex transactions, managing regulatory risk and supporting projects that promote sustainable growth and long-term economic impact in Nigeria and beyond.
Kaspersky’s new global research reveals that 65% of online shoppers believe they can detect fraud on their own, while only 42% actually use security software to protect their payments and block malicious links.
Experts consider this a major risk for online buyers. Over the past year Kaspersky identified nearly 6.7 million phishing attacks globally impersonating online stores, payment systems, and banks, with 55.6% targeting online shoppers.
As the post-holiday and summer sales season kicks off, Kaspersky conducted a survey to examine consumer cybersecurity practices employed during online shopping. The findings show that 97% of respondents demonstrate a substantial level of awareness of online security risks and implement at least some measures to safeguard their digital transactions.
However, the survey found that fewer than half the participants use dedicated security software to block phishing attempts and protect payment transactions. This concerning trend is particularly pronounced among the 55+ year old generation, with only 32% of respondents in this age group actually using security software when making online purchases.
The most commonly adopted security protocols include being vigilant about potential warning signs, such as suspicious hyperlinks or unusual website design (65%) and verifying seller authenticity (62%).
Kaspersky experts emphasise that while these practices are essential protective measures for online shopping, they constitute only foundational protection strategies rather than the comprehensive fraud prevention provided by a security solution.
Other steps that could protect online shoppers, like using a separate credit card for digital purchases or using a separate email address to register with unfamiliar online shops, were chosen by 33% and 26% of survey participants, respectively.
Meanwhile, 30% claimed to consult with friends and relatives before making a purchase. Interestingly, this option is highly popular among the younger generation, with 37% opting for it, while it is less common among older people (21%).
“Throughout the year, we’ve observed that online shoppers have consistently been one of the most desirable targets for scammers. During sales periods, their scams can become even more pervasive. Staying vigilant is crucial, but protecting yourself requires more than just awareness.
It is particularly concerning how scammers are now using AI to craft more sophisticated, targeted phishing attempts that are increasingly difficult for regular users to recognise,” comments Olga Altukhova, Senior Web Content Analyst at Kaspersky.
Sales seasons are peak times for scammers. To protect yourself against emerging threats, implement the following security practices:
– Don’t save your full credit card details on websites unless absolutely necessary.
– Consider using a separate debit card specifically for online purchases and set up transaction alerts on your bank and credit card accounts.
– Be extra cautious of “flash sales” that seem too good to be true. Watch out for websites that pressure you into making quick decisions, and be wary of sellers who refuse returns or exchanges.
– Use different passwords for each online account and enable two-factor authentication wherever possible.
– Apply a security solution with a strong anti-phishing component. For instance, Kaspersky Premium received the annual ‘Approved’ certification from the leading testing lab AV-Comparatives in 2025 for detecting 93% of phishing URLs, demonstrating outstanding anti-phishing capabilities, powered by AI technology.
– Scammers constantly evolve their methods, so staying informed about new phishing techniques can help you recognise and avoid them. The Kaspersky Security blog will help you keep your finger on the pulse of emerging cyberthreats.
The study was conducted by Kaspersky’s market research center in November 2025. A total of 3000 respondents from 15 countries (Argentina, Chile, China, Germany, India, Indonesia, Italy, Malaysia, Mexico, Saudi Arabia, South Africa, Spain, Turkey, the United Kingdom, and the United Arab Emirates) took part in the survey.
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