RAKBANK has signed a 5-year exclusive agreement with RAK Insurance for a Group Credit Protection programme designed to provide financial protection to their borrowers and credit card holders in an event such as a death or disability. This agreement is backed by Munich Re, one of the world’s leading reinsurers.
This is a ground-breaking solution due to its multi-year term; the bespoke offering for RAKBANK combines RAK Insurance’s local knowledge and insurance expertise with Munich Re’s capabilities in customising high-quality, tailored solutions for risk management.
This programme will enable a consistent client insurance offering across the bank, underpinned by efficient and effective turnaround of underwriting and claims services through local presence of Munich Re.
Peter England, RAKBANK CEO, commented: “This collaboration is supporting the growth in our Personal Banking unit, improving our diversification efforts and leveraging RAK Insurance’s local and Munich Re’s international expertise. The Bank is delighted to sign this five-year agreement, offering customers a number of services as part of the credit protection programme.”
RAKBANK’s agreement with RAK Insurance is in line with the Bank’s strategy to diversify its income and provide best-in-class services to customers. The Bank’s current strategy is heavily focused on diversification and customer centricity, which includes growth in Bancassurance services.
Frank Mayer, CEO of Munich Re Underwriting Agents, DIFC, commented: “This innovative group credit solution will provide RAKBANK’s retail banking clients with insurance protection over the next five years, and will enable Munich Re to explore new and innovative product development opportunities jointly with RAKBANK and RAK Insurance.”
Ewen McRobbie, RAK Insurance CEO, commented: “RAK Insurance is delighted to sign this five-year agreement with RAKBANK and Munich Re. It underpins our intention as a member of RAKBANK Group to work jointly towards providing quality services that benefit RAKBANK customers”.
RAKBANK recently announced consolidated Net Profit of AED 270.2 million for Q1 2019, a year-on-year increase of 31.7%. Total Income of AED 1.0 billion increased by 8.5% from 2018, with Total Assets of AED 53.5 billion increasing by 9% year-on-year. Recent strong financial results have been driven by the Bank’s diversification strategy, which commenced in 2015 and has included expansion into new business lines and products.
