Insurance Firms Should Adopt Digital Underwriting Platforms to Raise Policy Uptake

Kenyan Investments firm, Cytonn Investments, has called upon insurance companies to adopt mobile and digital underwriting platforms so as to raise the uptake of insurance products.

This comes a few days after Standard Chartered Bank Kenya and insurer Sanlam introduced the first mobile-app based funeral cover which will give policyholders the option of cashing in part of the premiums paid.

According to analysts from Cytonn, the integration of digital platforms to allow for policy payments will enhance the collection of insurance premiums, given the high level of mobile phone penetration in the country, at 91.0 percent in 2019, which will help eliminate premium undercutting. This is because technology and innovation capabilities are set to continue being the key drivers of growth for Sub-Saharan Africa in the coming years.

The insurance sector has continued to undergo transition mainly on the digital transformation and regulatory front, which is critical for the stability and sustainability of a conducive business environment for one of the key sectors of Kenya’s economy.

“We are of the view that insurance companies have a lot they can do to register considerable growth and improve the level of penetration in the country,” reads part of the weekly report by Cytonn Investments.

Additionally, the investments firm is of the opinion that the synergy between banks and insurance companies to offer Bancassurance services should continue, so as to boost penetration levels in the country.

Insurance companies should leverage more on the penetration of bank products to push insurance products to consumers.

Read Also: Stanchart and Sanlam Introduce First Mobile-App Based Funeral Cover