Takaful: Innovation in Insurance

By Juma / Published May 3, 2018 | 9:40 am

The insurance sector in Kenya has been growing at a slow pace. By the year 2017, the penetration of insurance among Kenyans was below three percent with studies showing that Kenyan’s uptake of insurance services is still low but growing steadily.

A survey done by an online service provider, Daktari Africa, revealed that a paltry 12 percent of Kenyans have any form of the insurance program. The dismal numbers meant that an approximated 48,000 Kenyans have insurance in a country with more than 40 million people.

According to the survey, 10 percent of Kenyans who were under insurance cover was subscribed to public insurance covers with the remaining two percent having their own private covers. “Most Kenyans do not see the point of taking up insurance covers because of lack of information of benefits that come up with the insurance,” stated the survey.

The main hindrance to the uptake of insurance in Kenya has been the inadequate trust most Kenyans have in insurance service providers. Most Kenyans are of the feeling that majority of the insurance sectors are out to ‘take away their hard-earned’ money just to enrich themselves. Most of these beliefs, however, are unfounded since they are built on hearing of what other people say.

There is also the issue of delayed and sometimes lost claims. Some insurance service providers have been blamed of never remitting claims back to their customers when the need arises and this has played a big role in tainting the image of the sector in general. Most of the insurance service providers who have been blamed for this are those that provide motor vehicle insurance covers.

There is also a general lack of innovation in the insurance sector in Kenya. Most insurance service providers have failed to embrace the technological wave that is sweeping across the world. This has left a majority of them to struggle with the archaic ways of marketing for their services as well as seeking for clients.

According to market experts, the majority of insurance companies in Kenya need to change their modes of operation and those that will have a breakthrough should and must:

Embrace innovations and the use of technology
Come up with products and services that fit the changing consumer behavior and needs.
Work hard on building the damaged reputation especially when it comes to claims in order to win the trust of Kenyans.

There is one insurance service provider in Kenya who is rewriting the rules and changing the narrative around the insurance sector in the country. This is Takaful Insurance of Africa Ltd (TIA), a pioneering and dynamic insurance company that has been proved to be offering ethical and innovative products.

What most service providers forget is that a client will not want to know why you did not give them the best services. What the client wants are the best services. Give them the worst, and you lose them. Takaful is winning hearts by their ability and willingness to recognize that risk is an undeniable part of life.

As I was perusing through their products and services on their website, I discovered that they have a wide range of risk management and financial security services that would give you the peace of mind. For instance, they have the General Takaful that encompasses both retail and commercial solutions, Micro Insurance that includes Index-Based Livestock Insurance, Family Takaful that covers individual and group protection and savings, a Medical product for group medical solutions and Pension for Takaful Umbrella Fund.

One statement caught my eye on their platform, and this is what other players do not have, “the Takaful Concept is based on the principles of togetherness, co-operation and mutual solidarity for all…. And is operated on an ethical and moral foundation that intends to improve societal welfare and avoids prohibited activities involving exploitative interest, gambling, and excessive uncertainty.”

A good company should have core values that guide its day to day activities in meeting the expectations of their customers. Takaful has six core values: Excellence, Customer Focus, Integrity, Innovation, Teamwork, and Equity.

Of the sic, Customer Focus and Innovation are key not only in Takaful but in growing any business.

About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

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