For local insurers the road ahead can only turn brighter – Business Daily
Companies leverage data-driven solutions, and artificial intelligence to create products that best suit their markets. PHOTO | SHUTTERSTOCK
Kenya’s insurance penetration has remained depressed over the years and currently stands at about 2.3 percent. If you stop a random person on the street and ask them about their experience with insurance, the answer is probably going to be unhappy.
For many years, the insurance sector has suffered a reputational onslaught with the majority of the public viewing 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) to be effected, among other issues.
But with robust regulation, adoption of technology, transparency and tightening of governance and business ethics, the sector’s sanity is on the path to restoration. Moreover, customer service in insurance has greatly improved over the years and this is bound to increase uptake.
Consumer education has also improved and slowly as most people no longer only buy insurance because it is compulsory but understand its value.
However 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 has remained low even as the economy expands.
Technology adoption and digitisation of the insurance sector have heavily influenced improvement of customer service.
Digital platforms have helped shape perceptions and build brand loyalty and trust.
Automation has also 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 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) generates reports that name and shame firms with the most complaints in a bid to promote transparency.
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 either.
As we celebrate customer service this month, 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 enables clients make wise decisions.
The writer is the managing director Liaison Group
