Insurer sharpens strategy to increase market share

By John Oyuke

Insurance firm Metropolitan Life Kenya has outlined plans aimed at sharpening its strategy and improve on existing products, to woo more clients.

The subsidiary of Metropolitan International (Pty) Ltd which in turn is a subsidiary of MMI Holding Limited, an insurance-based financial services company listed on the Johannesburg Stock Exchange, plans to provide relevant and affordable products and improve on existing services to make them stand out and available to more consumers.

“We are increasing our focus on the products and services that our consumers value most while continuing to invest in innovation and sector-based products,” the firm’s Corporate Business General Manager, James Oyugi said.

He said products have been developed for segmented markets such as Credit Life Insurance for loans taken by Savings and Credit Co-operative Society (Sacco) members and Group Last Expense Cover, to take care of funeral expenses. “It’s time we moved out to customers and sent message to them,” he added.

Another facility by the firm is Pan African solution, a facility for organisations that have employees in various countries across the continent and would prefer to cover them under one policy.

Loan defaults

Metropolitan Life Kenya which was established in 2006 enjoys backing from its parent company Metropolitan International in South Africa and boasts of a paid-up share capital of Sh807.8 million.

According to Oyugi, the Kenyan insurance sector expects more products and ultimately, more innovation and support.  He said it is in light of this that the company unveiled a credit life policy targeting the multi-billion shillings Saccos to act as collateral for potentially expensive loan defaults.

Though in normal circumstances, loans given to members from Saccos are guaranteed by the group itself, problems may arise should some members find themselves unable to cover expenses in case of a default.

Oyugi said the firm’s insurance package will offer a cover of 100 per cent for both loans and shares.

Policy holder pays a constant premium and assumes that the loan will be repaid religiously over the loan term and that is the crux of the matter. He described the Credit Life Assurance cover as a useful product for Lenders as it allows them to insure the lives of its debtors all under one contract, adding, “It provides a cost effective way to ensure that outstanding debt is settled should a client (life assured) die or become disabled within the loan period.”