Friday, July 19, 2024

How Co-op Bank is saving farmers losses with the Agribusiness Bancasurance

Bancassurance is an arrangement between a bank and an insurance company allowing the insurance company to sell its products to the bank’s client base.

This partnership arrangement can be profitable for both companies. Banks earn additional revenue by selling insurance products, and insurance companies expand their customer bases without increasing their sales force.

When Did Bancassurance Begin?

Bancassurance, as we know it today, appears to have begun in France in the 1970s (which would account for its seemingly French name). Spain was also an early adopter, in the 1980s. Both of those countries continue to be bancassurance market share leaders.

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Financing options offered by Co-op Bank and how to access them

Insurance is becoming a necessity in the context of personal, commercial and industrial
activity. However, most people do not understand the idea of insurance itself. To enhance the understanding and use of insurance, it has to be introduced as part of a wider transaction. An individual keen to purchase a house might not see the essence of insuring the building against damage.

A bank giving a loan for the purchase is well placed to explain the importance of stabilizing the risk. The bank considers the life and health of the borrower in their ability to service the loan.


The banking sector has grown tremendously. It has achieved a high penetration all over the country including the rural areas. With the integration of financial institutions and insurance companies, banks seek to increase the range of products offered to clients. This has led to the adoption of bancassurance by most banks.

Bancassurance has been widely adopted in Kenya. It offers many advantages to banks, insurance companies and to customers. Bancassurance provides an opportunity for banks in product diversification and increases the source of income.

Customers appreciate the provision of integrated financial services under one roof which boosts customer loyalty and retention levels. Insurance companies have an advantage through increased insurance penetration and premium turnover.


Co-op Bank’s Role in the Growth of Bancassurance in Kenya

Co-operative Bank has taken the biggest strides to offer integrated financial products and Bancassurance is one of them. From Marine, medical, and life to Agribusiness insurance. Farmers won’t have to cry anymore for losses after their heavy toiling to get the best out of their agribusiness farms.

Rest a little easier knowing that you are financially covered from natural calamities, pests and diseases. Co-op Bank Bancassurance covers poultry, livestock, crop and more agribusiness ventures.  For crop insurance:

The farmer is covered against yield shortfall due to:-

  • Draught and/or excessive rainfall
  • Hail
  • Frost
  • Windstorm
  • Fire
  • Uncontrollable pests and diseases

Loss of production inputs is also covered as a result of the same factors.

What crops are covered?

Crops covered include but are not limited to:

  • Coffee
  • Cotton
  • Pyrethrum
  • Wheat
  • Barley
  • Sorghum
  • Maize
  • Tea
  • Vegetables
  • Sugarcane
  • Flowers
  • Greenhouse

What do you need to get covered?

  • Completely filled proposal form
  • The expected income per acre
  • The cost of production per acre
  • Premium payment

What is the claim process under agriculture?

  • Completely filled claim form
  • Police abstract in the event of theft of livestock or poultry
  • Vet claim form in the event of poultry

Lastly, the old saying goes that insurance is something you better have and not need than need and not have. Visit any Co-op Bank branch near you to get more information on Bancasurance

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