SBM Bank Kenya has entered the insurance sector by launching its own intermediary firm, marking a strategic move aimed at broadening its service offering and tapping into a growing revenue source.

The new unit, SBM Bancassurance Intermediary, will enable the bank to collaborate with insurance providers to offer a range of policies tailored for both individuals and businesses.

Through the new subsidiary, SBM will provide personal insurance, business-related covers, specialty products, and employee benefit schemes.

The bank said the new entity is designed to make insurance more accessible by reducing procedural hurdles, improving affordability, and speeding up claims settlement for its clients.

“We identified an urgent need to demystify insurance products and eliminate tedious procedures. This launch is part of our broader strategy to create holistic, integrated financial solutions that are relevant to our customers’ evolving needs,” said SBM Bank Kenya CEO Bhartesh Shah at the launch event in Nairobi.

SBM now joins a growing list of Kenyan banks that are setting up bancassurance subsidiaries to complement traditional banking.

As of March this year, 17 banks had been licensed by the Insurance Regulatory Authority to operate through bancassurance intermediary units. These include major banks such as Absa, Co-operative, I&M, KCB, NCBA and Stanbic, which have already established strong footholds in the insurance space.

The model has also attracted mid-tier and smaller lenders like Credit Bank, Family Bank, HF Bank, Kingdom Bank, National Bank of Kenya, Prime Bank and Sidian Bank.

Additionally, microfinance banks such as Caritas, Faulu, Rafiki and SMEP have also joined the bandwagon, showing the widening appeal of bancassurance across the financial industry.

According to Ruth Njoroge, principal officer at SBM Bancassurance, the bank intends to offer insurance packages that are integrated with its banking products to suit various customer lifestyles and professional needs. She said the focus is on offering value-added services that deliver ease and efficiency across the customer base.

“SBM Bancassurance Intermediary aims to deliver key benefits centered on convenience and streamlined processes. The value additions target all our customers within the SBM network and customer value chains allowing them to manage both banking and insurance needs in one location,” she said.

The new platform is set to serve as a one-stop financial hub, making it easier for customers to access both banking and insurance services under one roof, while helping the bank strengthen its customer relationships and expand its income base.