Strengthening Bancassurance: The case for insurance professionals in leadership.

According to a publication by Bentsi-Enchill, Letsa, and Ankomah, Bancassurance is an agency arrangement between an insurer (as the principal) and a bank (as the agent) by which the bank distributes the insurer’s insurance product(s) to customers of the bank.

This arrangement benefits both the insurer and the bank because it allows the insurer to reach a wider consumer base and enables the bank to diversify its product portfolio

Bancassurance has experienced significant global and regional growth since the 1980s, offering banks and other financial institutions (BOFIs) a strategic avenue to diversify their service offerings.

By partnering with insurance companies, BOFIs can enhance customer value through expanded financial solutions while generating additional revenue by utilizing their existing distribution networks. Insurance providers, in turn, benefit from broader market access and increased sales opportunities by leveraging these established banking channels.

For customers, this model delivers convenience, presenting a unified platform for both banking and insurance needs. From the perspective of the bank, cross-selling insurance products is an opportunity to deepen customer relationships and enhance revenue. For insurance companies, it means access to a pool of potential customers who already have a trusted financial relationship with their bank.

In Ghana, this trend has led to formalized partnerships between banks and insurers, enabling the delivery of Bancassurance products through the banks’ distribution infrastructure.

Over the past decade, Bancassurance has evolved from a niche offering to a mainstream distribution channel. According to market research by 6Wresearch, Ghana’s Bancassurance market is projected to grow steadily through 2031, driven by increased demand for life and non-life insurance products, especially among individuals and Small and Medium Enterprises.

As of mid-2025, Absa Bank Ghana had served over 157,000 clients through its Bancassurance offerings, a testament to the model’s growing relevance. Similarly, Fidelity Bank Ghana, in partnership with Prudential Life, has been recognized for its innovative and customer-centric insurance solutions.

Also, according to Modern Ghana , the StarLife Assurance and GCB Bank Bancassurance partnership, which began in 2007, has shown strong performance and growth over the years. The collaboration is considered one of the largest Bancassurance platforms in Ghana. The National Insurance Commission commended the collaboration between StarLife and GCB during the launch of three products in 2017.

The leadership of Bancassurance units within most banks is often entrusted to professionals without insurance backgrounds. While banking professionals bring operational efficiency and customer service acumen, Bancassurance is not merely an extension of banking.

It is a specialized field that demands technical insurance knowledge, regulatory fluency, and strategic foresight. The absence of these competencies at the leadership level can undermine the very potential that Bancassurance seeks to unlock.

Despite this growth, many banks continue to appoint non-insurance professionals to lead their Bancassurance units. There is a vast difference between having insurance knowledge and being an insurance professional. Just a handful have insurance professionals heading their Bancassurance units.

This leadership gap can result in:

Suboptimal Product Development

Insurance product development requires a blend of actuarial insight, risk profiling, and market segmentation-skills that are typically honed by professionals with insurance backgrounds. However, many Bancassurance units across Africa, including South Africa, are led by individuals with strong banking experience but limited exposure to insurance fundamentals. This leadership gap has tangible consequences.

A 2022 survey by Reinsurance Group of America (RGA) involving six of South Africa’s largest bancassurers revealed that while digital transformation was progressing, product development was lagging. The survey highlighted several key challenges:

• Low application start and completion rates: Despite the availability of digital platforms, customers were not engaging with insurance products as expected. This was linked to poor product-market fit and a lack of personalization.
• Limited innovation in product design: Most insurers focused on simplified issue products with minimal underwriting but failed to differentiate offerings or tailor them to emerging customer segments like millennials, SMEs, and low-income groups.
• Weak alignment with customer needs: Products such as funeral cover, credit life, and mortgage protection were popular but lacked flexibility and customization. This reduced their appeal in a competitive market where consumers expect more personalized solutions.
• Reliance on traditional distribution logic: Even with digital tools like e-signatures and online claims, many bancassurers continued to design products for in-branch sales, missing opportunities to optimize for mobile-first or omnichannel experiences. These findings underscore the importance of insurance-trained leadership in Bancassurance Without it, banks risk offering products that are technically weak, poorly positioned, and misaligned with customer expectations-ultimately undermining sales performance and customer trust.

Compliance Vulnerabilities

Insurance is governed by a distinct set of regulations. Misinterpretation or oversight can lead to breaches in claims handling, disclosures, and data protection-exposing banks to reputational and financial risks. The integration of banking and insurance systems often leads to data management issues, especially when IT systems are incompatible. This can result in violations of data protection laws, such as Ghana’s Data Protection Act or GDPR in other jurisdictions. Without insurance-trained leadership, banks may mishandle customer data during claims or policy servicing, exposing them to legal and financial liabilities.

Sales Inefficiencies

Selling insurance is fundamentally different from selling banking products. Without insurance-savvy leadership, frontline staff may lack the training and motivation to effectively promote insurance solutions. A research study on Bancassurance by the University of Nairobi revealed that many Bancassurance officers lacked insurance-specific training, affecting their ability to sell effectively.

Also, banks relied heavily on generic scripts and brochures, which failed to engage customers meaningfully. The study recommended targeted training programs and closer collaboration between banks and insurers to improve sales outcomes.

Also, a survey conducted by RGA in 2022 in South Africa found that while digital tools were being adopted, sales performance remained weak due to:

Innovation Stagnation

The insurance industry is evolving rapidly, with trends like microinsurance, embedded insurance, bundled products, and digital distribution gaining ground. Leaders with insurance expertise are better positioned to drive innovation and adapt to changing customer expectations. According to Zopper Blog, insurtech partnerships thrive when led by insurance-savvy professionals who understand customer behavior and product design.

Customer Experience Challenges

Claims management and policy servicing require empathy, speed, and precision. Insurance professionals understand the nuances of these processes and can ensure a seamless experience that builds trust. According to the Atlas Magazine, Bancassurance contracts, especially for property and casualty insurance, claims management can become complicated due to unclear responsibilities between the bank and the insurer. Customers often face delays and confusion when trying to determine who is accountable for processing claims.

This lack of clarity can erode trust and damage the banking relationship, especially in dispute scenarios where legal liability is ambiguous. Additionally, McKinsey’s survey of over 8,500 insurance customers found that only 29% of life insurance customers reported positive experiences. Many cited impersonal service, slow follow-ups, and rigid processes as major pain points. These issues are often exacerbated in Bancassurance settings where bank staff lack the training to handle sensitive insurance interactions with empathy and precision.

Banks must prioritize insurance expertise at the leadership level. This means:

• Recruiting or seconding experienced insurance professionals to head Bancassurance
• Encouraging cross-sector training and certification for banking staff involved in insurance
• Collaborating closely with regulators like the NIC and BoG to align leadership competencies with

industry standards. Ghana’s financial sector stands at a pivotal moment.

As Bancassurance continues to grow, the question is not just how many products are sold, but how well they are managed. Bridging the leadership gap is not a luxury-it is a necessity for sustainable growth.

Lawrence Daniels – Head of Corporate Business – Impact Life , PRO of the Chartered Insurance Institute of Ghana and Country Director of the Yips Ghana