Skip to main content

INSURANCE COMPANIES SHOULD START EMBRACING THE 21st CENTURY E-COMMERCE TYPE OF DOING BUSINESS

   Insurance in our African region is not seen as a very important necessity compared to other places in the world. For the past few decades since this practice was introduced to the African population it has been something for the elite only. It was tailor made for the working class people because they were the only group that was earning regular income and could afford to pay for the annual premiums. Such actions made the insurance companies that were there by then lay a very segregating foundation of this industry. As years followed more and more insurance companies from both local and international spectrum which were joining this market didn't bother to alter these barrios. These aspects later led into a mental state from the low income earners and people who were coming from the informal sector that such things like "Health insurance" policies were not ment for them. A tradition which have led to the stagnant grow of our insurance industry compared to others.
   Decades ago we were on the same level with the Banking industry but as years went by the banking sector had a steady growth compared to insurance. Banking also was viewed as an elite type of industry with countless list of rules just to acquire an account. Somewhere along the road they stopped and checked on how they were conducting their business and found that there was an upcoming of a threat from the micro-banking (Table-banking). In this type of banking was commonly formed by small businessmen and women who were vegetable venders and other small scale businesses. After all these the banking sector went back and sat down,went through the issue once again and consulted widely to come up with a banking solution which would take in all these people. With some few months of deploying field agents to teach these people who were already in groups how it's important to have an account.
  Insurance can also take such bold step to initiate a slow but steady growth of the industry. Something like health is more basic than banking but if we were to take statistics you'll see that there are more people in terms of percentage,who have bank accounts but no medical insurance policy. It might seem abnormal but this shows the amount of people who are not aware of the importance of insurance. Another aspect that is really letting this industry down is the number of fraud stars present in the industry. There have been thousands of cases which are voiced by potential clients that they have been duped insurance sales persons,agents,brokers and even main stream companies. Claims go unsettled,premiums defaults and even closing down of insurance companies without the knowledge of the clients.
  Another big blow that this industry is facing is the slow pace that they are embracing technology in way of doing business. More companies are now embracing technology to ease the cost of operation and increase consumer volumes. This might be also the right time that insurance company to take this path to see it's future growth in revenues. With the same media they can also spread the importance of insurance to the wide population despite the background you are coming from. Relevant organizations both local and international once again should champion such initiatives in terms of funding and networking of researchers so as to come up with insurance policies that could favor the masses.         

Comments

Popular posts from this blog

Kenya Economic Outlook

Economic growth is estimated at 4.9% in 2013 and is projected to accelerate to 5.7% in 2014.   Having witnessed drastic currency depreciation and rapid inflation in 2011, the economy experienced stability for both indicators in 2012 and 2013 with inflation dropping to a single digit. This stability is expected to continue in 2014. Kenya’s economy continued to recover in 2013 from the slowdown experienced in 2011. Real GDP growth in the year accelerated to 5.2%, 4.3% and 4.6% in the first three quarters of 2013 primarily driven by financial intermediation, tourism, construction and agriculture. Real GDP growth is estimated at 4.9% and 5.7% in 2013 and 2014 respectively. Similarly CPI inflation is expected to remain single digit over the same period. The economy’s short- to medium-term forecast is for sustained and rising growth based on: increased investor and business confidence in the wake of peaceful March 2013 elections; increased rainfall; a stable macroecon...

Young investors flock online stock trading

    Online trading of shares is attracting a youthful generation of investors who take advantage of the convenience of the internet.Due to a new product from the Nairobi Security Exchange (NSE), it is possible for anyone with shares to buy and sell them online without having to go through stockbrokers. The new system which is available to anyone who opens a trading account with investment group, SBG Securities Limited,links the NSE to back office systems at the offices of stockbrokers and the Central Depository and Settlement Corporation (CDSC).      The CDSC is the official custodian of clearing and settlement services in the capital markets and ensures investor's transactions are fast,safe and secure. The service comes at a time when more youth are being encourage to trade shares at NSE. In April 2008, the bourse launched the annual NSE Smart Youth Investment Challenge to promote stock market investments among Kenya's young adults. This year's event...

Standard Bank, General Electric vow to power Africa

    Standard Bank, Africa’s largest lender by assets, and General Electric on Tuesday reaffirmed their commitment to Africa at a power financing roundtable held in Washington DC. The partnership sees both parties aiming to bridge the power financing gap in Africa and forms part of the US Africa Leaders’ Summit, the largest gathering of African heads of state and government as well as key stakeholders to visit Washington on any one occasion. The strategic partnership has already seen both companies commit to a $350 million financing agreement aimed at improving access to power infrastructure in Africa. Africa needs to add an extra 300 gigawatts (GW) of power generating capacity over the next 15 years in order to meet demand which is expected to grow at an average annual rate of 3 percent over the next two decades. According to the International Energy Agency, sub-Saharan Africa requires more than $300 billion in investment to achieve universal elect...