Insurance for most Kenyans, is a grudge purchase – something people reluctantly buy because it is mandated, not necessarily because they see its value. This has contributed to a low insurance penetration rate of under 3%, according to the Insurance Industry Annual Report 2023 by the Insurance Regulatory Authority (IRA), significantly below the global average of 7%.
Policy holders and potential customers have traditionally had several concerns around insurance service provision that have contributed to the low penetration. Common issues include slow claims settlement, low levels of awareness, and the perception that insurance is expensive relative to the benefit it provides.
Today, insurers are deploying technology to deliver seamless and intuitive customer experiences. From purchasing policies on your phone to filing claims through mobile apps, the processes are quickly becoming faster, simpler and more convenient. Insurers who understand and act on this are gaining a significant competitive edge.
Innovations are not only being experienced in the paperwork processes and procedures, but also in service provision. For categories such as motor insurance, innovations are being included that help with emergency response, reducing the response time where delays in medical or security assistance can have dire consequences.
The emergency response services are not only bundled into the insurance services, but also easily accessible by the customer through tech-enabled platforms that combine the power of geolocation to identify responders that are closest and dispatch them in real-time. Combining these services provides additional value that goes beyond the traditional compensation models.
The modern insurance customer not only needs a policy but also wants solutions that fit into their lifestyle and address their risks quickly and efficiently. By bundling such features into their offerings, insurers are tapping into a growing market of digitally savvy customers who value convenience and proactive care.
This value-driven approach is key to driving uptake of insurance products in Kenya. When customers experience the real-world benefits of their coverage, especially during emergencies, they develop a stronger connection to the brand and deeper appreciation of the role that insurance plays in their lives.
Services like the Old Mutual Rescue Plus connects motor insurance policyholders with on-demand emergency response including ambulance and security assistance. It is an example of how insurers can provide all-inclusive services that make their customers’ lives significantly easier.
Such services are made possible through collaboration between insurers and other organizations such as AURA Kenya whose expertise in emergency management provide a holistic solution for policyholders.
Even better for the customers is that these technologically enabled services are easily accessible through a single phone call at any time of the day or night. Once alerted, the emergency system automatically dispatches the nearest available private response vehicle to the user’s location. Through such services, customers enjoy round-the-clock access to roadside assistance for broken down vehicles, medical response for health emergencies, and security assistance for personal and property safety.
While important to increasing customer loyalty and trust, these value additions are only viable when they are backed by strong back-end processes. Insurers, in such cases, need to work with capable partners to provide the tech platform and emergency response services. Additionally, the insurer must also be backed by a capacity to manage and respond to claims in a timely fashion.
These partnerships are the engine behind what customers experience on the surface. A slick mobile interface or emergency response button is only as effective as the infrastructure and people that support it.
Further, no amount of tech gloss can compensate for a poor claims experience. If a customer receives rapid response services but then faces challenges in getting their claims processed or disbursed, the trust built during the crisis fades and is quickly eroded.
In other words, technology can play a key role in enhancing how customers view insurance, and their uptake of insurance policies. Its delivery, however, should be focused on improving customer experience when the fundamentals are already strong.
Technology is a tool, not the whole system. For it to be effective, it must be integrated into a well-coordinated framework that includes reliable partners, responsive service teams, and robust insurance practices. When all these work in harmony, technology becomes a catalyst for trust, loyalty, and everyday relevance.
In Kenya, motor insurance rates are high due to regulatory requirements, but only as third-party cover. By demonstrating tangible value, especially in moments of urgency, insurers can shift consumer perceptions and bring more people into the fold.
By Prudence Khamati – Head of Operations, Old Mutual General Insurance Kenya, her email is pkhamati@oldmutual.co.ke