How service provision in insurance has changed – Business Daily
Companies leverage data-driven solutions, and artificial intelligence to create products that best suit their markets. PHOTO | SHUTTERSTOCK
If you stop a random person on the street and ask them about their insurance experience, the answer is probably going to be ‘unhappy’.
For many years, the insurance sector suffered a reputational onslaught with a majority of the public viewing insurance providers as untrustworthy and aggressive marketers who fail to deliver on promises.
And there was a reason for that – the industry had seen the painful collapse of some underwriters, premiums were complex and costly, and payment of claims took long (or never), among other complaints.
But with robust regulation, adoption of technology, transparency and the tightening of governance and business ethics, the sector’s sanity has been greatly restored.
Consumer education has also improved and slowly, most people no longer only buy insurance because it is compulsory but understand its value.
But more needs to be done to remove the negative perception. While insurance exists to mitigate unforeseen risks such as injury, illness, accidents and even death, uptake in the country has remained low even as the economy expands.
The country’s insurance penetration has remained depressed over the years and currently stands at about 2.3 percent. Overall, customer service in insurance has greatly improved over the years and this is bound to increase uptake.
Technology adoption and digitisation of the insurance sector have heavily influenced the improvement of customer service in the industry. Digital platforms have helped shape perceptions and build brand loyalty and trust in the sector.
Automation has led to improvements in the processing and payments of claims and also made insurance firms more accountable. For example, in case of an accident, clients can file claims in minutes by uploading photos or videos at the accident scene. Clients can also access their policy documents and motor stickers online with multiple payment options including mobile money.
Technology also helps prevent fraud which is a headache for the insurance industry. Regulators have also kept insurers on their toes and made sure they offer better services.
The Insurance Regulatory Authority (IRA) produces reports that name and shame firms with the most complaints, for example in a bid to promote transparency in the sector.
The Competition Authority of Kenya (CAK) also developed template contracts for the industry aimed at reducing disputes of unfair termination of contracts by insurers.
This has been marked by more innovative products and policies from insurance providers. The younger, hard-to-please generation has not been left out of focus by the sector.
To keep improving customer service, the insurance industry still has more to do. Customer experience is tied to the industry’s success. And the needs of customers keep changing.
My call to the industry is towards greater listening and connecting with customers, simplifying of the users’ experience, leveraging on technology and providing the right information to ensure that customers make wise decisions.
Mr Mulwa is Liaison Group managing director
