Soneri Bank to Discontinue Bancassurance Business

The management of Soneri Bank has decided to discontinue the business of bancassurance by the end of this month (February).

According to official sources, the bank will cease the selling of new insurance policies of the partner companies to customers effective March 1, 2023. The existing customers will continue to be served for the smooth renewals and achievement of the persistency benchmark.

Soneri Bank has signed partnerships with Jubilee Life Insurance and EFU life Insurance for offering various insurance products and investment plans to its customers.

The bank has also directed its staff to cease marketing and advertisements of bancassurance products from the given deadline.

Bancassurance is one of the profitable businesses of the banks which provided an opportunity for banks to make extra margins on the sale of insurance products and services of the partner insurance companies.

However, customers often complain against officials of banks for deceptive marketing practices for attracting them to purchase this product.