CIC General Insurance Limited Managing Director Elijah Wachira has urged intermediaries to embrace technology as a marketing and distribution channel with a view to increasing insurance penetration in the country.
Speaking during the Association of Insurance Brokers of Kenya (AIBK) breakfast meeting held a Nairobi hotel, Wachira noted that technology adoption will increase insurance penetration through mobile applications accessible to both the public and service providers. He also urged intermediaries to embrace partnerships with experienced, reputable insurance companies like CIC.
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. Some of the features include real time updates on lodged claims and a self-service portal that will enable the customers and intermediaries to update their bio data details, view their premium/ commission statements, generate quotations of different insurance cover options and purchase preferred covers among other features.
AIBK National Chairman Nelson Omolo commended CIC for investing in technology that led to the improvement in the company’s bottom line.
“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,” said Omolo.
To reach the rural population with insurance services, CIC Insurance Group has tapped on mobile technology for interactive communication and money transfer. With mobile penetration rate at more than 95% of adult population, CIC M-Bima technology has opened up space for retail distribution for micro-insurance products. The underwriter is using mobile phone as a tool for marketing and customer service operations.
“We endeavour to bring our products and services closer to our clients through technology and branch networks all over the country. We have also collaborated with various intermediaries who are very instrumental in the distribution of our products to our clients,” Wachira added.
Through mobile technology, insurance products are marketed and distributed using organised networks such as small shopkeepers, mobile money stores, etc. Apart from the conventional use of agents and brokers selling insurance, CIC has adapted alternative methods which include use of banks (Bancassurance) and SACCOs (SACCO Insurance Concept).
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. These new modes of distribution are in particular interesting for less developed insurance markets, where insurance penetration is low and the conventional intermediation model of agent/brokers may not be efficient or effective.
Worldwide, advanced technologies are set to spur a fundamental transformation of the insurance industry, including cloud computing, advanced analytics, mobile phones, digital platforms and artificial intelligence (AI). These are expected to help insurers determine new ways of engaging with customers and reduce cost, improve efficiency, and expand insurability.
“The company has also embarked on an ambitious five- year Strategic Plan (2017-2021), that will see it become the leader in most of the business activities that we already undertake and the activities we are currently building capacity in, such as medical business,” added Wachira.
CIC Insurance Group is a leading Cooperative Insurer in Africa, providing insurance and related financial services in Kenya, Uganda, South Sudan and Malawi.
Read: A history of corruption and why it is ingrained in Kenyans’ DNA
The Group offers a wide range of products including general insurance, life assurance, medical insurance and asset management services. It is a pioneer and leader in micro-insurance.
Its focus on innovation and excellence in service delivery has differentiated it in the market and earned it national and international recognition.
Leave a comment