Innovation and Creativity in the Insurance Sector Strategy for Tapping the Unreached Customer - AIBK
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“Innovation and Creativity in the
Insurance Sector
Strategy for Tapping the Unreached
Customer
Innovation is the implementation of something new.
Innovation involves producing new products and services, new
business models, and new or improved methods for producing
goods or services.
Creativity is the capability or act of conceiving
something original or unusual.
Creativity is defined as the tendency to generate or recognize
ideas, alternatives, or possibilities that may be useful in solving
problems
Think Insurance….. Think Geminia
Insurance Penetration Rates in Africa
Name Life Business Non-Life Business Total
South Africa 11.02% 2.74% 13.76%
Namibia 5.37% 2.18% 7.55%
Morocco 1.43% 2.06% 3.49%
Kenya 1.08% 1.63% 2.71%
Tunisia 0.42% 1.62% 2.04%
Algeria 0.07% 0.65% 0.72%
Egypt 0.33% 0.35% 0.68%
Angola 0.01% 0.58% 0.59%
Nigeria 0.08% 0.17% 0.25%
Source: AKI Annual Report, 2017
Think Insurance….. Think Geminia
Kenya Insurance Penetration (% of GDP)
Target is to reach 6%
penetration by 2020 by
exploring opportunities in:
Oil and gas,
Real estate,
Infrastructure,
Micro insurance
Agriculture. …
AKI Chairman, 2017
Source: AKI Annual Report, 2017
Think Insurance….. Think Geminia
Kenya Insurance Penetration (% of GDP)
Year Kenya’s GDP Insurance Industry % Penetration
(Billions) premium (Billions) (Billions)
2010 2,551 79.06 3.10%
2011 3,025 91.60 3.02%
2012 3,440 108.54 3.16%
2013 3,798 130.65 3.44%
2014 5,357 157.21 2.93%
2015 6,224 173.79 2.79%
2016 7,159 197.00 2.75%
2017 7,749 209.7 2.71%
Source: AKI Annual Reports 2010 - 2017
Think Insurance….. Think Geminia
Reasons for low insurance uptake
FinAccess 2016 survey conducted by a multi-stakeholder
body including CBK, KNBS, FSD Kenya
Source: FinAccess Survey 2016
6
Think Insurance….. Think Geminia
Global trends in reaching the untapped market?
Digital distribution strategy – use of online portals, mobile
platforms
Emerging risks insurance e.g. Cyber crime, Climate change
Monthly insurance cover e.g. South Africa (direct debits for
insurance in 12 installments)
Products targeting millennials
Think Insurance….. Think Geminia 7
Government Initiatives to support for Insurance Penetration
NHIF Supa+cover @ 500/-
Kenya National Agriculture per month Proposals for compulsory
Program: Crop & Livestock Last expense cover for insurance for property at
Insurance students (tendered) schools
Targeting 14 counties of Health insurance targeting
northern Kenya: Mandera, 3 million secondary
Wajir, Marsabit, Turkana, West schools cover launched in
Pokot, Baringo, Laikipia, Isiolo, April 2018 by the President
Samburu,Garissa, Tana River, Health insurance for the
Lamu, Kajiado and Narok aged above 70 years –
Inua Jamii 8
Think Insurance….. Think Geminia
What more can the Kenyan government
do to increase insurance penetration?
1. Ensure all government buildings are
insured, can we lobby?
2. Create a fund for School properties
insurance
3. Implement compulsory insurance for
Marine, WIBA?
Think Insurance….. Think Geminia 9
Industry Initiatives to support for Insurance Penetration
Consumer Education championed by:-
Insurance regulatory Authority
College of insurance
Association of Kenya Insurers
Retirement Benefit Authority – Annuity covers that allows customers to get
medical cover in their old age
Think Insurance….. Think Geminia 10What is Geminia doing to increase Insurance
Penetration……..
Geminia Insurance Company LimitedWho we are….
Geminia is a composite insurance company (Life & General) founded in 1981
Key Metrics
2018 GWP – 4.5B (as at Oct)
VISION
2017 GWP – 3.6B
To be premier regional insurer most Assets base – 6B
admired for people, partnership and Claims paid – 2.1B
superior experience
MISSION
To be a trusted partner in providing
value based innovative risks solutions
CORE VALUES
Integrity and Trust
Excellence in Service provision
Passionate about what we do
We value each other
Think Insurance….. Think Geminia 12Who we are….
What’s new at Geminia in 2018?
Strengths Branch network
Wide range of products Westlands PI cover for clinical officers
Strong financial base - Asset 6 Billion Upper Hill Branch Pensions
Timely claim settlements CBD Branch Trade credit & guarantees
Accessibility and flexibility Travel insurance
Mombasa
Cohesive and empowered team TwinSave Investment policy
Eldoret
Service providers across the country Life riders on motor, DP & PA
Kisumu
Strong international reinsurance Aviation
securities: Kisii
Agriculture
Reliable and strong partnership with Nyeri
our Intermediaries Meru
Profitability Nakuru
Thika
Think Insurance….. Think Geminia 13Who we are….
Branch network Strengths What’s new at Geminia in 2018?
Westlands Wide range of products
Upper Hill Branch Strong financial base - Asset 6 Billion PI cover for clinical officers
CBD Branch Timely claim settlements Pensions
Accessibility and flexibility Trade credit & guarantees
Mombasa
Cohesive and empowered team Travel insurance
Eldoret
Service providers across the country TwinSave Investment policy
Kisumu
Reinsured by International Securities Life riders on motor, DP & PA
Kisii
Strong partnership with our Intermediaries Aviation
Nyeri Agriculture
Profitability
Meru
Nakuru
Thika
Think Insurance….. Think Geminia 14How is Geminia reaching the untapped market?
Education & Partnerships
Geminia has partnered with Daily Nation to
provide weekly articles demystifying Insurance.
The partnership includes distribution of newspapers
to schools in Kenya
Training of media houses on insurance done in Q1,
2018 (Nation, Standard, East African)
Partnership with Financial institutions e.g. banks to
assist entrepreneurs & other investors in the SME
sector access banking services e.g. Letters of
credit, guarantees and trade credit otherwise
unavailable to them
Think Insurance….. Think Geminia
15How is Geminia reaching the untapped market?
Solution based approach to Insurance
Innovative products
a) PI for clinical officers & clinics
b) Agriculture aggregators
c) Index based insurance to provide cover for subsistence farming in remote & rural areas
d) TwinSave Investment product – min. 900/- per annum
Integration of life products with general insurance e.g. Life rider for motor, domestic package, personal accident
Use of online portals /USSD number for: Marine, Travel, TwinSave investment product
Product reach to remote areas
We have partnered with an international organization called Worldcover to target farmers in remote areas
Use of aggregator channels to sell insurance
Distribution
In the last 2 years, Geminia has worked to increase its branch & distribution channels network in a bid to meet
reach more customers
Think Insurance….. Think Geminia
16Think Insurance….. Think Geminia
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