Want more clients? Treat people well, insurers told

CIC Group CEO Tom Gitogo presents an award to Pitty Nyokabi Maina of Britam during this year’s Association of Kenya Insurers’ Agents of the Year Awards. Insurers have been challenged to be innovative and build good customer relations. (PHOTO: COURTESY)

Financial experts have challenged insurers to invest in research, innovation and create healthy consumer relationships to overcome low insurance penetration.

Uchumi Supermarkets CEO Dr Julius Kipng’etich said there is need to increase awareness to boost the uptake of insurance products. The industry penetration as at 2014 stood at 2.93 per cent.

“In any business relationship, both customers and traders will always consider value for money and brand reputation as the most important factors. Other factors include trust and clear communication channels,” said Kipng’etich, who was speaking during this year’s Association of Kenya Insurers (AKI) Agents of the Year Awards (AAYA).

Customer needs

Dr Kipng’etich said that long-term market success begins with stronger and deeper customer relationships and the impact the products, operations and investments have on the customers.

“Life insurance helps people accumulate wealth, protect its value over the years, convert it into lifetime income and transfer it to future generations. Insurers should also create platforms where Kenyans will understand life insurers also play a key role in meeting the growing needs for retirement savings and guarantee income,” said Kipng’etich.

“Insurers must take stock of which and how consumers have been “orphaned” and whether “alumni” customers can be won back to enjoy new services in the industry that also favours their interests,” he added.

AKI chairman Justus Mutiga challenged members to understand customer needs.

Job creation

“As AKI, we will continue to work closely with all players to boost the industry’s growth and ensure better service delivery that results in job creation and secure economic growth,” said Mutiga.

The insurance industry remains a pillar to Vision 2030, with the sector in 2014 contributing gross written premium worth Sh157.21 billion compared to Sh130.65 billion in 2013. This was 20.3 per cent increase. Life insurance premiums rose from Sh44.01 billion in 2013 to Sh56.97 billion in 2014, an increase of 29.4 per cent.

The industry has attracted many foreign investors in recent months, leading to several mergers and acquisition of insurance companies.