Kenya’s Insurers See Hyper-Personalized Covers As Way To Sustainable Growth
Kenya’s insurers are betting on hyper-personalised policies as the way to sustain current customers and win a larger section of the younger population.
Africa Ahead In it’s recent report stated that the Association of Kenya Insurers (AKI), an umbrella body for Kenya’s insurance firms, says the pandemic has created “a lot of ground” for insurers to cover in meeting emerging consumer trends.
According to the latest AKI insurance sector report, insurers have some way to go to move away from providing traditional products towards providing solution-based products that meet consumers’ needs at any point in time.
The umbrella body describes hyper-personalised policies as “products that aim to provide cover, depending on the customer’s own needs and risk profile, and are only possible using digital innovations to enable smart pricing and underwriting”.
The need for insurance product innovation is evident in the competitive motor insurance space, with many insureds opting to work remotely and therefore using their cars for a reduced number of days.
The AKI says that such customers are on the hunt for better, smarter and cheaper alternatives to traditional annual policies, adding that established underwriters will have to adapt to the change, or risk losing out to innovative insurtech startups.
