AAR records 40% rise in digital insurance uptake

By Mourice Seretta

AAR Insurance Kenya says its customers are now using its digital platforms more, signaling a shift in health underwriting in Kenya driven by technology and changing consumer trends.

The medical insurer has recorded a 40 percent increase in uptake of its digital platforms this year alone, mostly in the 25 – 45 age group, with 52 percent of users being men and 48 percent women.

According to AAR Insurance Chief Operations Officer Mercy Ndegwa, while the increased use of digital platforms is partly attributable to Covid-19 limiting in-person contact between clients and service providers, convenience is a driving factor for tech-savvy consumers seeking real time solutions to their insurance needs.

“As part of our digital transformation strategy, we have automated most of our services leading to improved efficiency, faster turnaround times and a better customer experience,” says Ms. Ndegwa. The medical insurer has rolled out various activities to promote healthy lifestyle habits during the Customer Service Week being celebrated globally this week.

She adds that digitization of processes means customers can conveniently access services from anywhere using various mobile applications thus saving time.

“Our core operating systems are now cloud-based and able to support real-time, secure online transactions while reducing our operational costs as we don’t have to maintain a physical data center.”

AAR clients can also access their records electronically via mobile apps and the company’s web portal and pay for services using mobile money platforms like M-Pesa.

This has seen the time taken to process claims fall to as little as 48 hours. In addition, the M-TIBA online health platform enables clients to manage their medical expenses using mobile phones. AAR has also partnered with e-health providers MyDawa and CheckUps to offer home delivery services for prescription medicine.

Digital insurance, also referred to as insuretech, has been touted as an effective channel for boosting insurance uptake in the country.

The company is focusing on convenience as the theme of this year’s event. “We have chosen convenience given our focus on digital empowerment of our customers. Hence, the slogan ‘We are where you are’ as we celebrate our customers this week,” said Ms. Ndegwa.

AAR insurance is the second largest medical underwriter in Kenya with over 100,000 customers.