As insurers race to embrace digital technology, the thinking has been that the insurance brokers and agents might lose their jobs.
However intermediaries will still play a valuable role in attracting and retaining customers, according to Nixon Shigoli the AAR Insurance Kenya MD. They will still be required to facilitate critical processes like on-boarding clients onto digital platforms, managing claims and other processes, and educating consumers on the benefits of digital insurance.
Shigoli indicated that the shift to digital insurance creates opportunities for intermediaries to play an even bigger role in delivering an enhanced customer experience, thus creating a win-win situation for all parties in the value chain. He however cautioned that agents could be a weak link if they are not quick to adapt to the rapidly evolving landscape shaped by technology innovations and an increasingly tech-savvy, sophisticated clientele. He also added that today, consumers are more empowered with better access to information thanks to digital innovation. Which has increased the need for efficiency, transparency and accountability in the insurance value chain. As such the intermediaries need to stay ahead of the curve.
Currently, agents generate about 70 percent of AAR Insurance underwriting business hence the company’s focus on strengthening this key intermediary function. In 2016, AAR Insurance launched an agents training academy that has so far trained 1000 agents per year, equipping them with skills to operate in a fast-changing environment.
During an award ceremony held by the insurer, the top 40 agents were recognized for outstanding performance. The Agent of the year, Mr. Kennedy Ochieng Ooko drove away with a brand new Mercedes Benz C200. The first run up Callaghan Insurance Agency won an all-expenses paid international trip and second – runners up Zillion Africa Insurance Agency was rewarded with all-expense paid local trip. Other winners collected prizes including Gift hampers, certificates and trophies.
Data by the Insurance Regulatory Authority shows that in 2020, there were 11,138 licensed
insurance agents and 204 insurance brokerage firms in the country. AAR Insurance is among the leading medical underwriters in East Africa and has over 200,000 customers in Kenya.
AAR started its operations in 1984 with its primary business being medical evacuations of
accident casualties both by road and by air. Membership increased along with numbers of
customers, hence creating more opportunities to provide comprehensive health . This growth led to formation of an independent company AAR Insurance Kenya Limited, which offers a wide range of medical and non-medical insurance products. Today AAR Insurance has a presence across the region through its intensive branch and broker network. AAR Insurance is also a licensed financial service provider and a member of the Association of Kenyan Insurers.