Takaful Insurance Of Africa has achieved the 1 Billion in annual production, turned around from loss-making to profitability, and has distributed surplus to their participants.
As Takaful marks 10 yrs of operation in the market what are the key milestones achieved by Takaful in the insurance business?
We have surpassed KES 1 Billion in annual production, have turned around from loss-making to profitability, have distributed surplus to our participants, have a wide footprint across the country, and have greatly diversified our portfolio in terms of products, customers, and market segments.
As a Shariah-compliant insurance company in the country, what have been some key challenges in the insurance industry?
Technology is a big disruptor and underwriters have to continually innovate to satisfy the evolving needs of ever more discerning consumers. To overcome these challenges, we are continually relooking at our value proposition through investing in technology, driving innovation, and seeking to provide solutions, rather than products, to our participants. The evolving legal and financial regulatory environment can also be challenging and very involving; we have put in place measures to ensure compliance noting that as a takaful company we have dual regulatory requirements of both shari’ah compliance as well as regulatory requirements.
Insurance uptake in the country is still quite low below 5% what incentives should be provided to enhance growth?
Service excellence, product diversification, digital transformation, and continual innovation are what we are focusing on which will contribute towards enhanced growth. We are investing in our employees to enable them to perform at the top of their game. We are also focusing on marketing segments that have traditionally been left out of the loop to broaden and deepen access.
2020 was a tough year due to the global pandemic. What’s takaful’s projection of the insurance industry in 2021?
The ongoing Covid-19 pandemic has been a challenge for the sector as our products are regarded either as a grudge purchase which one buys because the law requires it e.g. motor vehicle covers, or as a luxury purchase. In an environment where pockets have been strained, the sector has seen downgrades of covers, cancellations, and delays/defaults in payment.
As we start the year, the looming headwinds of the pandemic, referendum, and pre-elections/elections could dampen the business environment. If the pandemic is contained and the political temperatures managed this will improve the operating environment thus enabling businesses to perform better than they did in 2020.’
As you embark on the next 10 years, what can we expect from Takaful?
As we embark on the next 10 years we will be focusing on digitalization, innovation as well as our impact on the wider community. This will see us launch a bouquet of products and services including _Takaful Mkononi_ our self-service platform which will allow participants to buy covers as well as a lodge/pursue their claims online; _Mnara_ our mentoring platform comprising of industry leaders from different sectors who will share their knowledge and experience to help build the next generation of leaders and _Jamii Takaful_ our support program for the assistance of the vulnerable members of the community.