Akram Abdullah Al-Ghaziwi, Deputy General Manager of Takaful Insurance Company, told our source:
“In many countries around the world, banks play a key role in marketing and selling insurance policies. This integration between the banking and insurance sectors is known as Bancassurance. Despite the global success of this model, Libyan banks remain outside this partnership framework, missing out on multiple economic opportunities.”
He added, posing a question:
Why Bancassurance?
“The bancassurance model provides insurance services through bank branches, making insurance products more accessible, raising insurance awareness in society—thanks to the high level of trust banks enjoy—and helping insurance companies reduce distribution and direct selling costs.”
According to Al-Ghaziwi, both sides benefit from this model:
Benefits for banks:
- New income sources through policy sales commissions.
- Deepened customer relationships by offering integrated financial solutions.
- Improved image of the bank as a comprehensive financial services institution.
Benefits for insurance companies:
- Broad and structured customer access through banking branch networks.
- Improved insurance penetration in the market.
- Reduced operational costs associated with direct sales.
He also stated:
“The challenges in Libya lie in the absence of a legislative framework that allows this collaboration, a lack of insurance awareness within banking institutions, and the need to train bank employees to market insurance products.”
A Call for Change…
- A call to the Central Bank of Libya and legislative authorities to explore the possibility of organizing this type of partnership.
- A proposal to form joint committees between insurance companies and banks to develop a suitable mechanism for cooperation.
- The inclusion of a pilot model with one bank to assess the feasibility of bancassurance in the market.
