03 Jul Growth Of Insurance Companies in Kenya – Must Become Youth Friendly
In recent months, studies has been released showing that many insurance companies in Kenya are struggling with customer care. Most companies openly admitted that customers service is their greatest concern, with most of them pledging to commit more resources to meet the needs of their customers.
Insurance Companies in Kenya Must Become Youth Friendly to Survive- Ernst & Young
A new report released by Ernst & Young now shows that Kenyans under 35 (the youth) are going to driver growth in the sector in the coming years.
Here is the interesting link between low user satisfaction in the sector and the emergence of a youthful market. Insurance companies have not adapted as strongly as companies in other sectors especially when it comes to service delivery.
Insurance companies in kenya remain one of the most paper intensive sectors in our economy. This shows that the industry may not have taken time to think about its future client-the youth. If it has, then there has been no incentive to take advantage of its market.
National statistics in Kenya indicate that those under 35 represent about 70% of the Kenyan population. Anyone who is ready for this market will make a killing in business. Insurance companies in Kenya must work a lot harder to ensure they meet the aspirations of the youth.
Ernst & Young predicts that growth in the life assurance sector will be driven by the demand this service by the youth. More young people are entering the job market faster than at any other time in our history, a trend that will be sustained for the coming decades.
In this regard, demand for all types of insurance common to workers will grow. Pensions funds will balloon and the sheer number of clients seeking insurance will also grow, leading to more opportunities and growth in the sector
The emergence of a youthful market can also help increase the uptake of car insurance in Kenya to improve the low levels of penetration.
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While Kenya leads the rest of East Africa when it comes to penetration, a 2.9% penetration rate is still rather low compared to mature markets like South Africa with penetration figures reaching up to 14%. Greater insurance penetration is usually a sign of a maturing economy, and is where Kenya must aspire to be if the country hopes to lift as many citizens from poverty as possible.
Insurance companies must do their best to ensure they meet the aspirations of the Millennials as they develop new products and as they device new methods of serving their customers.
Otherwise, a large potential market may go untapped. That will be a sad story for insurance companies in Kenya.
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