For any business to grow, there is a need to determine the likes and preferences of your target market. It is only very recently that insurers started to offer products for a target market with the focus mostly being on car insurance products for ladies. It is due to this that financial experts are challenging insurers to invest in research, innovation and create healthy consumer relationships in a bid to overcome low penetration. I for one believe that creating a healthy relationship with consumers is important. This due to the fact that the main reason for low penetration is the mistrust that most members of the public have against insurance companies borne out of bad experiences with unpaid claims.
Speaking at this year’s Association of Kenya Insurers (AKI) Agents of the Year Awards (AAYA), Uchumi Supermarket Chief Executive Officer Dr. Julius Kipng’etich had this to say, “In any business relationship both customers and traders will always consider value for money and brand reputation as the most important factors. Others factors include trust and clear communication channels.” “Insurers have to understand what customers are looking at for satisfaction in abid to increase the country’s penetration and the general outlook of the economy,” he added
According to Dr. Kipng’etich long-term market success begins with stronger and deeper customer relationships with all products, operations and investments evaluated in terms of their impacts on customers.
“Life insurance helps people accumulate wealth, protect its value over the years, convert it into lifetime income and transfer it to future generations. Insurers should also create platforms where Kenyans will understand Life insurers also plays a key role in meeting the growing needs for retirement savings and guarantee income,” said Kipng’etich.
Life Insurance not only provides for financial support to the beneficiaries in the event of the untimely death of the insured, but also acts as a long term investment. It enables a Policyholder meet his/her goals such as children’s education, marriage, building homes or planning for relaxed retirement. Life insurance also plays a major role of mobilizing Long-term savings thus contributing immensely to the country’s infrastructures and economic development.
Insurance industry remains a pillar of the country’s blue print project Vision 2030 with the sector in 2014 contributing gross written premium worth Kshs 157.21 billion as compared to Ksh 130.65 billion in 2013 representing an increase of 20.3 percent. Life Insurance premiums increased from Ksh 44.01 billion in 2013 to Ksh 56.97 billion in 2014, an increase of 29.4 percent. Many countries in the world can only dream of achieving such a growth in one year.
Insurance penetration in 2014 was 2.93% above many countries in Africa a clear indication of the growth opportunities ahead in the industry. My take is that there is still plenty of room to grow for the industry but the players need to work on the public perception and also create products to suit their clients needs.