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Trust or the lack of it has been faulted majorly for the low insurance uptake in Kenya today. A recent Association of Kenya Insurers (AKI) estimates that the penetration of insurance has steadily dropped to 2.43% of GDP down from 3.12% in the recent years, representing about a 3.3M policies in the country.
During the premier Insuretech forum at the Serena hotel, Peter Mwangi the Research Analyst at AKI, demystified the blockchain technology and how it would revolutionize ‘TRUST’ in the insurance industry.
“Blockchain technology assembles smart data together enabling fort the automation of the data into a smart contract,” says Mwangi who is convinced that customers shy away from insurance policies due to fraud.
The smart contract as he noted, is useful in automating the claim processing and settlement making the process efficient and seamless. It also rids of the need for intermediaries. It also improves customer satisfaction that eventually builds the trust element in any prospective or current customers.
“Through blockchain technology, medical records can be cryptographically secured and shared between health providers,” added Mwangi adding; “Such data is aimed to offer tailor-made products for insurance consumers.”
Mwangi concluded by urging insurers to take advantage of blockchain and other technologies to increase the uptake of good quality insurance by meeting the demands of the modern customer even venturing into virgin insurance markets.