SMEs urged to insure businesses in new insurance proposition by Ecobank
EcoBank Kenya has announced a one-stop proposition for Small and Medium Entreprises (SMEs). The SMEs solutions launched today are meant to insure businesses against risks among them being; SME loan products, inventory and distributorship finance, asset finance, short and medium term loans, cash or treasury bill-backed finance, contract LPO as well as asset finance facilities.
Speaking at the forum dubbed ‘Embracing Innovation Strategies for Banks and Insurance Companies,’ Ecobank Kenya Ag. Head of Domestic BankMr. Sam Marima said that as a regulatory requirement, credit facilities need to be insured, hence they need to ease the process of compliance.
“Due to economies of scale, we are able to negotiate for better rates and additional benefits. Similarly, being the lender and a partner we are interested in ensuring business continuity in the unfortunate occurrence of claim,” Marima said.
Today, the SME sector constitutes a large portion of all business in the country, absorbing up to 50 per cent of new non-farm employment and contributes 30 per cent of total employment and three percent of Gross Domestic product (GDP).
The growth of the SMEs across the country has necessitated competition for a share of the business opportunities that come by from the SME industry. In June this year, Ecobank Kenya launched its bancassurance arm – EcoInsurance Agency in partnership with Old Mutual, UAP and Saham Assurance representatives participating.
Kenya already has a robust insurance industry and the banking sector is an added advantage to the opportunities that SMEs can deduce from the relationships that have already been developed with the commercial banks.