Insurance companies urged to embrace innovation – KBC

Low innovation levels and mistrust are among factors pushing local insurance companies to the edge at the expense of international players.

To address this, Association of Kenya Insurers Chair Mathew Koech says underwriters ought to change payment models and increase accessibility by targeting the younger population in order to increase insurance uptake which is currently pegged at 2.5% way below the global average of 6%.

Insurance uptake in Kenya has remained low with industry players grappling with ways to attract new customers especially young people.

Solutions fronted include the use of technology to increase trust in identity, transactions as well as processes.

The blockchain technology is backed as the disruptor of the industry and solutions that offer products that can be purchased on a need basis.

He was speaking during the launch of Liaison Group Online Insurance that underscores the need for ‘do it yourself’ products that increase trust in the process.

Cases of customers falling victim to fraud have reduced after the coming into force of an Amendment to the Insurance Act in 2019 that barred brokers from handling cash paid by customers as premiums.