Amaco bets on new strategy to revive dwindling fortunes in motor cover

African Merchant Assurance Company (Amaco) whose market share in motor segment has significantly dropped now wants to forge closer relationships with car owners to shove up revenues.PHOTO: COURTESY

African Merchant Assurance Company (Amaco) whose market share in motor segment has significantly dropped now wants to forge closer relationships with car owners to shove up revenues.

The market has not been easy for the insurer after cut down on issuing covers to fraud-hit public service vehicle cover. The firm’s market share of motor segment now stands at 56 per cent as opposed to 80 per cent recorded in 2011. “We have replaced passengers with assets due to lack of inventory on passengers by matatu operators,” Elizabeth Koskei, Amaco General Manager said.

Amaco now wants to engage owners of private vehicles directly including hosting free vehicle check-ups for customers at least once a year.

This would help the firm to closely assess levels of clients and control fraud exposure, according to Ms Koskei. “We collecting reports from customers to closely understand their areas of key concern beyond the information we get from our agents and brokers,” she said.

She disclosed that the firm has brought on board 25 garages to complement agents and brokers. Last week, the firm held its inaugural auto clinic where it met car owners and wants to build on that to develop interaction plan to engage customers directly.

In the new strategy, the firm wants to sell its comprehensive motor product that covers the vehicle, third person (not related to the vehicle owner or employer) and pedestrian.

This cover also shields clients against terrorism, riots, fire resulting from ignition and car accessories.

While third party risk insurance costs about Sh7,500, comprehensive cover goes for as high as Sh80,000 annually making it lucrative for insurers.

Amaco hopes to significantly grow comprehensive cover that currently accounts for 25 per cent of its covers compared to low revenue earning third party cover that stands at 31 per cent.