04 Jul Sanlam Kenya Goes Tech To Boost Insurance Uptake
Sanlam Kenya has completed its business transformation strategy and is about to launch tech – based insurance products targeting the Kenyan Market. The company has been undertaking a systems upgrade to make it possible for its customers to buy insurance online.
This more came as part of its strategy to increase insurance penetration in the Kenyan market. Insurance companies have been a bit slow in deploying technology based end use technology systems, with a large number choosing to invest their IT shilling in backend processing facilities.
Very few insurance companies make it possible for you to renew a policy online, something that even government agencies such as the NTSA are already doing.
Sanlam CEO, Mugo Kabati intimated that the company faced huge challenges in implementing its systems upgrade, which also coincided with a rebranding project that saw the company change its name from Pan African Life Insurance to Sanlam group.
This change was effected after South African based Sanlam bought a majority stake in the company. The new majority owner in the company moved to rebrand its Kenyan interests.
Insurance companies in Kenyan recognize that their customer service is wanting, and as such, some have embarked on projects to improve their customer service credentials.
It will be a interesting to see how other companies react to Sanlam’s move to make insurance more accessible using mobile based technologies. It is reasonable to expect a higher level of uptake of technology solutions by the insurance sector to boost efforts to serve customers better.
Sanlam has already acquired Gateway Insurance, which is now the general insurance arm for the Sanlam. The Gateway insurance will now be known as Sanlam General Insurance Company.
This acquisition gave Sanlam a foothold in both the general insurance segment and the life assurance sector in the company. New laws introduced in the country required all insurance companies to split their operations into life and general.
In fact, the Insurance Regulatory Authority (IRA) currently requires a different capitalization level for life assurance companies and general insurance companies. Life assurance companies are expected to raise their working capital to a minimum of Kshs 400 Million, up from the current 150 Million by 2018.
General insurance companies on the other hand will be required to raise their capitalization from Ksh 300 Million to Ksh 600 million during the same period.