Kenyan Insurers urged to use technology to enhance penetration

The Association of Kenya Insurers (AKI) has urged Kenya's insurance industry to aggressively use social media and technology to reach the currently untapped lower end of the market. Themed Innovation and Technology -Transforming Life Insurance in the Region, this year saw 422 agents qualify for the awards, 89 more than 2010.

Officiating the AKI Agent of the Year Awards 2011, the Permanent Secretary at the Ministry of Information and Technology Dr. Bitange Ndemo implored the agents to tap into the youth as they form a greater market potential for the industry. He added that the ground was fertile for trade.

"Mobile penetration jumped from less than 20 per cent in 2005 to about 70 per cent of the population in 2012. Internet penetration improved from 5 per cent in 2005 to 36 per cent in 2011, among the highest in Africa," he said.

He added that Kenya is relatively ICT conversant and therefore ripe for the communication of available products and services. "Kenya has been very successful in the diffusion of mobile technologies but we still have room for more innovation," he added. The AAYA awards are aimed at incentivizing agents to explore these non-traditional channels to boost insurance uptake. Kenya has 46 licensed insurance companies, and 4,576 registered agents.

Speaking during the event, AKI Chairman Mr. Stephen Wandera said the insurance industry could ride on innovation and Technology to improve on growth and profitablity.
With the free flow of capital, labor goods and services within the East Africa region, Mr. Wandera said, "The insurance industry continues to embrace ICT, research and innovation thereby expanding its capacity to exploit the wider untapped insurance market .
The Insurance Industry recorded gross written premium of Sh79.1 billion in 2010 compared to Sh64.47 billion in 2009 (an increase of 22.7 per cent).