Occidental Calls for Digitalization and Customer Education for Financial Inclusivity
It is vital for Kenya’s financial service providers to improve customer experience and enhance their understanding of financial products to improve financial inclusivity according to Nixon Shigoli, CEO and Principal Officer of Occidental Insurance Company.
Mr. Shigoli underscored the importance of leveraging technology to make it easier for customers to access insurance products and increase insurance penetration in the country which currently stands at 2.4% against a continental average of 2.7%.
“There are many avenues to interact with new and existing customers, and it is time for financial service providers to take advantage of them. The modern customers expect a certain level of digital accessibility with their financial service providers, as well as two-way communication that allows them to feel heard. Using digital tools will allow us as insurers to provide faster, more efficient services all the way from customer acquisition, business processing, to claims processing,” said Mr. Shigoli.
A 2023 study on the state of microinsurance in Kenya by the Association of Kenya Insurers found that despite efforts to popularise insurance, most products are sold primarily directly from insurance agents to customers, leading to unsustainability and limitations in the growth of insurance uptake.
Digitalisation has emerged as a key consideration for insurers as the younger digitally empowered generations climb the income ladder and increase their purchasing power. Insurer operations are also likely to be positively impacted by digital transformation.
“Digital technologies present opportunities for educating customers on the products available for them, receiving and processing claims, and even detecting and preventing fraud. At Occidental Insurance, we are already considering ways we can leverage digital technologies, including AI, to better serve our customers and improve our operational efficiency. Currently, we have enhanced our partnership with Bancassurance players with an aim of creating an experience that not only serves this distribution channel but enables their clients to access our unique products and services for them to ‘Live Life Confident’,” added Mr. Shigoli.
The statements were made at the sidelines of the 2nd bancassurance conference which was, in part, sponsored by Occidental Insurance Company. Held under the theme “Bancassurance and Sustainability: Driving financial inclusion in Kenya through innovative insurance solutions”, the conference convened industry leaders, bancassurance intermediaries, insurance companies, and banking industry players to chart a way forward in improving insurance penetration in the country.
Attendees also discussed the place of regulatory support and industry collaborations in helping to design personalised and inclusive insurance products such as microinsurance that cater to the specific needs of low-income and rural populations.
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