This archive report was first published on 21 May 2020.
Kenya's Insurance Sector Gets a Digital Boost ¶
As the digital economy gains momentum in Kenya, traditional business models are being replaced by innovative solutions. The insurance sector is no exception, with a growing need for efficient, quick, and trustworthy means to obtain cover for various policies.
Two Nairobi-based innovators, Ms Bente Krogmann and Mr Chris Osore, developed a mobile app called mTek in late 2019. The app aims to revolutionize customer experience, eliminate paperwork, and reach the underserved.
"Today everything is happening in a rush. With such agile live-patterns and Covid-19 living among us, we need the ability to carry on with our daily lives while still on the go," Ms Krogmann said in an interview with the Nation.
mTek allows users to select insurance services from various underwriters, including ICEA Lion, GA Insurance, Mua Insurance, Mayfair, Madison, Resolution, and AAR. The app covers a wide range of general insurance services, from motor and personal accident to domestic and medical insurance.
Registering on the app takes a maximum of 6 minutes, a significant improvement over traditional insurance cover registration, which can take several days and requires multiple photocopies of identity documents.
Users praise the app for its convenience, accountability, and transparency. The app processes purchases and claims instantly, and digital identity for Know Your Customer (KYC) needs have been integrated.
However, the cost of premiums is based on policies, but mTek tries to make flexible policy durations and payment terms in accordance with underwriter directives.
Ms Krogmann and Mr Osore have faced challenges in connecting with traditional industry partners and staff, but they remain committed to their goal of digitizing the insurance industry.
With the Fourth Industrial Revolution taking off, Kenya's insurance sector has been left behind, but mTek is leading the charge towards digital transformation. The app now seeks to integrate Web3.0, a machine learning understanding of data to provide a data-driven and semantic web, as well as decentralized financial services.
As Industry 4.0 unfolds, the creation of digital solutions has been on the rise in Kenya, with Covid-19 acting as a catalyst to digital transformation.
