Nairobi Securities Exchange (NSE)-listed financial services group, Sanlam Kenya has announced the alignment of its business strategy and processes to allow for transparency across the board. This is in support of the industry and regulator efforts to curb fraud, an industry wide problem that continues to reduce operational profit and erode shareholder returns.
In a statement to the firm’s shareholders and published in the company’s Annual Report and Financial Statements 2018, Sanlam Kenya Chairman Dr John Simba acknowledged that the company has reinvigorated its focus to grow the business, particularly emerging from challenges that led to a depressed performance in 2018.
“We are determined to instill efficiency and ethical practices as key operations hallmarks this year. This includes more stringent vetting of claims to weed out unscrupulous ones,” said Simba
He noted that while the new vetting measures in place may slightly lengthen the period leading to settlement, it is the price that the company must pay to deal with fraud instances.
Dr Simba added: “Moving forward, our focus is to strengthen internal processes and controls to plug gaps that may give rise to fraudulent claims or loss-making investments without stifling decision-making processes that are essential to our business.”
Despite the trading and operational difficulties, the businesses experienced during the year, the organisation remains committed to making complete financial recovery with the new systems in place.
On his part, Patrick Tumbo, the Group Chief Executive, noted that finding a balance between watertight processes and procedures, and a clean claims settlement record as well as investment decisions remains critical across the businesses.
“We are re-evaluating our entire investment processes and systems, reviewing the code of business practice and reinvigorating stakeholder engagement to embed excellence in all our operations. Customer service excellence remains a priority area, at all times,” added Tumbo.
Sanlam Kenya is committed to recovering lost ground by setting in place the building blocks needed to get back on track with its strategic growth plan, cementing its position as a major provider of life and general insurance, and in the process grow shareholder value.