New technologies to spur growth of insurance sector


As the advancement of technology is creating a wave of ripple effects in the Kenyan sectors, the insurance industry has not been left out.

Giants in the insurance sector are now increasingly being urged to invest in new technologies as a means of better understanding the fast changing business environment, and to be able to tailor make products that would suit individual or specific client needs.

Research that was carried out by Pricewaterhousecoopers (PWC) shows that the more usage of technology, the larger the benefits for a business entity. Alluding to the vital growth of mobile phones with regards to insurance, such as mobile insurance, has significantly contributed to a large amount of new customers.

Kenya, currently leading in insurance uptake across the East African region at 2.83%, a percentage that could exponentially grow, once technology is greenlighted and more innovation incorporated purposely for client experience.

The changes technology is bringing about are reshaping the insurance industry. So much so, that the approaches taken by these insurance agencies are slowly evolving to customer-centric, with improved prices and an overall higher operational efficiency.

With insurance consumers also on the receiving end of technological positives, their needs and expectations have become much wider than before. This has allowed them to become more knowledgeable than ever, they insist on personalized offerings and tailored communications, down to the very last detail. This is the biggest push in the perspective of insurers, because now they have no choice but to digitize services and optimize as many interactions as possible.

Through the usage of varying forms on computer based infrastructures and interfaces, insurers can gain increased customer satisfaction and loyalty. Plus, lowering costs and greater operational efficiency. This has led to insurers making significant investments in data analytics and modeling techniques, allowing them to improve on every aspect of their business.

The core insurance systems, though modern, are being modernized even further with the help of technology. Optimization of processes and reduction of costs have led to insurance companies having more funds to invest in “Robots”. They are software tools that simplify business processes and even help in interaction with clients.

However, there is a vital need for the consumer and the insurer as a whole, to understand the level to which technology is impacting the economy, and how to use that impact for the greater good of the business.

The digital world is awash with opportunities for innovation and value creation. The insurance sector in Kenya has taken an all important step to tap into it and join the process of enhancing the regions digital foot print.

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