This archive report was first published on 9 June 2020.
On June 9, 2020, Kuscco Mutual Assurance Ltd, the insurance arm of the Kenya Union of Savings and Credit Co-operatives Ltd (Kuscco), marked a significant milestone in its growth journey. The company has earned a total income of Sh359 million since its launch a year ago.
Anthony Ogutu, the Chief Executive of Kuscco Mutual Assurance Ltd, sat down with Financial Standard to discuss the company's growth, its expansion into pension administration, and the impact of the COVID-19 pandemic on the insurance industry.
Initially, Kuscco had a wing of business called risk management service that managed financial risks for societies affiliated to Kuscco and compensated on loans they've insured in case of a member's death. This informed the acquisition of the license from the insurance regulator to start an insurance wing of business, which was granted for the purpose of trading in life assurance business.
Today, Kuscco Mutual Assurance offers a range of policies, including individual last expense assurance, education, capital accumulator savings, mortgage loans, and group life assurance. The company has also expanded its product base to cater to the needs of its clients.
One of the key areas of focus for Kuscco Mutual Assurance is pension administration. The company has acquired a license from the Retirement Benefits Authority (RBA) to venture into this area. Ogutu explained that the company will offer group pension funds for corporate clients and individual pension plans.
However, the COVID-19 pandemic has presented significant challenges for the insurance industry. Ogutu noted that the pandemic has impacted the company's growth targets, with policies lapsing and people not renewing their insurance policies. He also highlighted the impact of the pandemic on investment companies, which have heavily invested in companies listed on the Nairobi Securities Exchange (NSE).
Despite these challenges, Kuscco Mutual Assurance remains committed to its growth strategy. The company is looking to give affordability to its clients, particularly those in rural and far-flung areas. Ogutu also emphasized the importance of technology in the insurance industry, noting that the company has greatly shortened the turnaround of claim payments.
