Geminia Insurance increases footprint

By John Oyuke

In a major strategic shift, Geminia Insurance Company, plans to increase its presence in the market by opening more branches in the country - and expand in the region.

The insurer, which has carved a niche with its diversified products and services, has also announced plans to launch more products.

The general manager of the composite insurer, Siddharth Iyer, said the move is informed by the fact insurance business is founded on the principle of large numbers (clients).

To tap the vast market and increase visibility, the insurer, he said has adopted a three-pronged strategy: opening up of new branches, augmenting relations with banks and other channels of distribution.

"We plan to open two branches this year and two more next year," he said, adding that the insurer plans to venture to neighbouring countries in 2012.

Iyer said the 28-year-old firm is responsive to the emerging needs of our existing and potential customers.

He said the insurer had introduced political violence and terrorism cover last year.

"We have also launched a new product, Bima yangu, for the life segment to address the need of savings of ordinary Kenyans," he told Financial Journal.

Geminia has been operating since 1982 and has managed to retain some clients since inception.

"We have clients dating back to 1982 in our books," said Iyer.

He explained the relationships have been maintained because the firm operates by the spirit of contract and is not limited by the fine print.

COMPOSITE INSURANCE

"Our fast settlement of claims has been our hallmark," he said.

Iyer said the firm has no objection with Insurance Regulatory Authority (IRA) policy to gradually phase out composite insurance model.

"Worldwide, life and general insurance are handled by independent companies," he said.

However, Iyer said only time would tell which is the right model as the one-stop shop model is gaining currency in the financial services sector.

On why is there such a low uptake of insurance in the country and how the scenario can reversed, he said it is a reflection of the performance of the economy.

"Kenya is a fast emerging market with few rich people but majority are poor. The middle class is slowly growing, but the cost of living is high," he noted.

He observed that while the rich prefer buying covers abroad, many Kenyans do not have disposal income for their insurance needs.

Iyer said although there is the notion than Kenyans could be adequately covered by 20 out of the existing 42 insurance companies it is not the numbers but the quality of service and reach of underwriters that matters.