Technology key in uptake of insurance

The penetration rate of insurance in the country has generally been declining over the years. The majority of the small and medium-sized enterprises (SME’s) who employ more than eighty percent (80%) of the workforce in the country are not insured.

The insurance industry still needs to do more to ensure that Kenyans see the advantages of taking an insurance cover for their own benefit and their loved ones’.

According to Insurance Regulatory Authority (IRA) Annual Report, 2019, The Kenyan insurance market is the largest in the East African market with a penetration rate of 2.34 per cent .

The low uptake of insurance shows that more needs still need to be done by the insurance players in the industry, in order to convert the majority of people into the insurance cause.

One of the underlying factors affecting the uptake of insurance policy can be attributed to the lack of digitization processes in the industry.

For a very long time, insurance companies have been known to have many processes involving paperwork consequently delaying service delivery to customers.

Digitization is key especially during this Covid-19 period where individuals can be empowered to register, track and or follow-up their insurance claim.

By integrating technology through the entire insurance process, in particular end-to-end customer lifecycle from access to insurance cover options, product purchase, submission of a claim and insurance cover renewals, the insurance industry will be able to bring in more customers into the fold.

The Covid-19 pandemic generally accelerated the move to digitization and automation of processes.

During this period, there was an increase in insurance claims stemming from business interruption, event cancellation, hospitalization among other eventualities.

The pandemic period also had a number of delays in claim settlement due to the restriction of movements in counties, which then had many individuals hesitant towards insurance players.

According to a global survey of insurance CEOs conducted by KPMG International in 2020, Covid-19 has been the digital catalyst insurers so dearly needed with nearly eighty-five percent (85%) of Insurance CEOs saying Covid-19 has accelerated the digitization of their operations and the creation of next-generation operating models.

The survey also says that it has led to the creation of seamless digital customer experience and brought new urgency to the creation of new business models and revenue streams.

The digitization and automation process may be through bringing in custom mobile apps and service portals, agent/broker business portals. This may lead to the general growth of the customer base, faster claims resolution at lower costs because of the automated solutions and in the long run a satisfied customer who will bring in more customers through referrals and goodwill.

CIC Group has been changing its operations and embracing technology by eliminating paperwork. For instance, recently the company launched a claims self-service provider portal for garages and assessors in a bid to increase the claims reconciliation process. The portal will be serving garage owners, assessors, investigators, and adjusters.

The portal will automate the bidding system aiding garage owners to respond to bid invitations from CIC Group online, confirm receipt of repair vehicles at the garage, initiate release, and aid the re-inspection process of motor vehicles among other services.

The portal will also allow tracking of turnaround time and improve documentation for garages.

By embracing digitization and automation, the insurance industry will be able to attract more potential customers into buying insurance covers, ensure business continuity for their businesses and build customer confidence through fast and reliable service.

This in the long run will guarantee growth for the industry and trust from the public.

The writer is the General Manager – Marketing and Customer Experience – CIC Group