This archive report was first published on 12 May 2020.
As the COVID-19 pandemic continues to spread, insurance companies in Kenya have been advised to adopt digital services to reduce the challenges they are facing.
According to a recent survey, digitizing operations would put insurance firms in a better position to overcome the low penetration in the sector, which has been exacerbated by the pandemic.
The survey, conducted by the Institute of Insurance in Kenya, Insurance Information Bureau, and Esri Eastern Africa, also recommends that insurance companies overhaul their products to accommodate emerging needs, especially for the youthful population, pensioners, and SMEs.
"To grow and remain relevant, insurance companies should be quick to transform via the adoption of new technologies, benchmark with the global best while learning from local success stories in the financial and mobile communications sectors," said the Kenya Insurance Industry Survey 2019.
Published on May 12, 2020, the survey also highlighted the need for insurance companies to engage with customers beyond just providing coverage after an accident occurs.
It noted that a lack of engagement had led to a decline in insurance penetration from 3.44 percent of the gross domestic product to 2.43 percent due to erosion of trust in insurers.
