Soko Secures A Sit-Down With The CEO Of mTek

It has been two years since you launched mTek. What are some of the key highlights since then?

The Kenyan market has been very responsive to mTek and this is evident from our more than 65,000 active clients who have trusted us to be their insurance partner. Secondly, we have been able to gain investors’ confidence in our business model with our recent of $3 million from Finclusion Group – which will see us expand in the market.

We have also been able to partner with over 35 Kenyan underwriters who have enabled us to offer our clients customized insurance products, through our app. Since our inception, we have been able to expand to all forms of protection ranging from medical, life, and motor to travel insurance among others – all at the client’s fingertips.

What are some of the aspects of mTek that have made it a success?

mTek is a revolutionary 100% paperless insurance platform that is providing on-demand options from the underwriters, premiums, and payment options. Having an adaptable customer-centric platform architecture has facilitated an unparalleled customer journey.

Thirdly, the 100% digitization of mTek has deepened our Know-Your-Customer (KYC) processes that have helped us identify our client’s preferences and habits which help us in responding to real-time user impersonation when this occurs. mTek seeks to make insurance accessible to anyone with an internet-connected smart device through simplified products, digital distribution, and affordable payment plans.

What new products has mTek invested in in the last two years?

We have invested heavily in research and product development to enhance the user experience. As a result, we recently launched Flexi Hela – an innovative, flexible savings solution with a guaranteed return in partnership with Sanlam Kenya has launched Flexi Hela.

We have also introduced Umatter – affordable international health insurance cover which has a limit of Kenya Shillings 540 million. And we are currently offering Third Party Only motor insurance for a month at the cost of Kshs 500 for the month of July – for our existing and new clients.

Based on mTek’s model, you are classified as a microinsurance. What would you say is ailing the market segment and what can be done?

The microinsurance segment is the next big thing and frontier for the insurance sector. The challenges that the segment is facing are lack of awareness, high operational costs, and product mismatch.  For the microinsurance segment to be profitable, the following must be in place:

• All players must strive to create awareness through simplified customer education on the need for insurance products. Let us all show the benefits to the customer, financially.
• Affordable premiums will be brought about by low operational costs – which can only happen when we increase the market penetration from the current 3 percent.
• Financial inclusion through products such as mTek that make it easy for individuals to customize their payments plans based on their financial capacity; and
• Products need to be improved to provide better offers to low-income populations
• Efficient insurance distribution models that are included and customer-oriented

Why would microinsurance and in your case mTek is the next big thing?

Africa is traditionally the world’s most uninsured and underinsured continent’. The availability of microinsurance products can open up the doors for millions of Africans specifically medical and life insurance products. mTek being a digital insurtech platform enables customers to make affordable and flexible insurance payments; without having to fill in any paperwork, providing them with security and peace of mind at their fingertips. We have been able to consistently provide exemplary personalized customer services with full transparency, especially on matters claims – 100% digitally.

We are now past our half-year mark. What is your take on the market in the next coming months?

While motor insurance is the largest contributor to nonlife insurance, we are seeing growth in health and property insurance with the COVID-19 realities. I believe that the industry will push for the uptake of pension and life insurance as more people become more aware of their importance.

Overall, Tech-driven innovation is fundamentally reshaping the insurance industry. Emerging capabilities including telematics, artificial intelligence, machine learning, and automation have transformed nearly every aspect of the insurance value chain and continue to create new and improved experiences for customers.