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Tech to boost insurance uptake

Insurance intermediation has traditionally used either the agent/broker or bancassurance model

In Summary

•Insurance intermediation has traditionally used either the agent/broker or bancassurance model

Association of Insurers and Brokers of Kenya chairman Nelson Omolo with Insurance Regulatory Authority acting CEO and Commissioner Godfrey Kiptum
Association of Insurers and Brokers of Kenya chairman Nelson Omolo with Insurance Regulatory Authority acting CEO and Commissioner Godfrey Kiptum
Image: CHARLES MGHENYI

Insurance brokers and agents should capitalise on technology to boost policy uptake in the country.

Speaking during the Association of Insurance Brokers of Kenya (AIBK) breakfast meeting held at the Crowne Plaza, CIC Group general insurance managing director Elijah Wachira said brokers/agents should embrace technology, especially through mobile applications.

AIBK chairman Nelson Omolo reiterated this adding that investing in technology would result in increased profits.

“Technology will be the next frontier of competition in the insurance industry and CIC has heavily invested in this sector, which is ultimately paying dividends”, Omolo said.

Through mobile technology, insurance products can be marketed and distributed using organized networks such as small shopkeepers and mobile money stores.

According to the OECD 2017 report, Technology and Innovation in the Insurance sector, insurance intermediation has traditionally used either the agent/broker or bancassurance model.

“While this remains the main intermediation channel for most developed insurance markets, many InsurTech start-ups are taking on this model and proposing new distribution models for insurance,” the report states.

In order to offer timely services, increase efficiency and enhance customer experience, CIC has migrated to a new system set to benefit intermediaries and customers.

“We have collaborated with various intermediaries who are very instrumental in the distribution of our products to our clients,” Wachira said.