It Is Time Insurance Players Took Customer Education Seriously To Demystify The Sector For Better Product Penetration

By Steve Biko Wafula / Published February 18, 2023 | 7:38 pm




KEY POINTS

Many Kenyans may not fully understand what insurance is and how it works. As a result, they may not see the value in paying premiums for something they do not fully comprehend.


Nairobi

KEY TAKEAWAYS


Livestock farming can be a risky business due to factors such as weather, disease outbreaks, theft, or accidents. These risks can result in significant financial losses for farmers, particularly those who rely heavily on their livestock for income.


Insurance is a means of protection against financial loss or damage that can occur due to unforeseen events. It provides individuals with a sense of security by transferring the risk of loss from themselves to an insurance company in exchange for a premium payment.

For an individual, insurance can provide a safety net against unexpected events such as illness, accidents, natural disasters, or other unforeseen events that can lead to financial losses. Insurance can also offer protection for valuable assets such as a home, car, or business, allowing individuals to protect their investments and minimize potential financial losses.

In addition, insurance can also offer peace of mind by providing individuals with financial security in the event of an emergency. This can help individuals to focus on their recovery without the added stress of financial worries.

Overall, insurance can be an important financial tool for individuals, offering protection, security, and peace of mind in the face of unforeseen events.

It is not accurate to make a blanket statement that all Kenyans hate insurance products and services. However, there may be some common reasons why some Kenyans may be reluctant to purchase insurance. These include:

  1. Lack of awareness and understanding: Many Kenyans may not fully understand what insurance is and how it works. As a result, they may not see the value in paying premiums for something they do not fully comprehend.
  1. Trust issues: There have been cases of insurance fraud and mismanagement in Kenya, which have eroded trust in the industry. Some Kenyans may be hesitant to invest in insurance products because they do not trust the insurance companies to fulfill their obligations.
  1. Affordability: Insurance premiums can be costly for many Kenyans, especially those living in poverty or struggling to make ends meet. As a result, they may view insurance as a luxury rather than a necessity.
  1. Cultural beliefs: Some Kenyans may believe in fate or luck, and as a result, may not see the need to purchase insurance. Additionally, some may view insurance as a Western concept that is not applicable or necessary in Kenyan culture.

We all desire to have businesses that are thriving and doing well. However nothing ever goes according to plan and this means, one must have a redundancy plan. Agriculture is a key sector that has the potential to create millions of jobs but it is unexploited.

Livestock farming is a key sub-sector in agriculture that has serious potential to create jobs and wealth. As a business analyst, I believe livestock farming is something we should focus on. Livestock farming can be a risky business due to factors such as weather, disease outbreaks, theft, or accidents. These risks can result in significant financial losses for farmers, particularly those who rely heavily on their livestock for income.

Livestock insurance can provide a safety net for farmers by covering the cost of losses that are beyond their control. Depending on the type of insurance, it can cover various risks such as death, injury, disease, or theft of livestock. This can help farmers recover financially and continue their operations without significant setbacks.

Furthermore, insurance can also be a requirement for farmers who want to obtain loans or other forms of financing. Lenders may require farmers to have insurance as a way to mitigate their own risks and ensure that the farmers are able to repay their debts.

Overall, livestock insurance can play an important role in helping farmers manage risks and protect their investments, making it an essential consideration for livestock farmers.

Overall, it is important for insurance companies to address these concerns and educate Kenyans on the benefits of insurance. By building trust, increasing awareness, and offering affordable insurance products, insurance companies can help Kenyans better protect themselves and their assets.

To be a leading and trusted insurance brand with unique services, like an insurance for livestock, Takaful Insurance business in Kenya is implementing the following strategies:

  1. They are developing targeted marketing campaigns that target specific segments of the market, such as the products for livestock farming. These campaigns will be run through social media, digital platforms, and YouTube.
  2. They are offering competitive pricing and flexible products and services that meet the needs of different clients. This will include options for customized coverage, as well as discounts for long-term clients.
  3. They have improved customer service by providing timely and helpful responses to client queries, as well as ensuring quick and efficient claims processing.
  4. They have partnered with other businesses to offer bundled insurance packages, such as livestock and crop insurance, to attract new clients and retain old ones for long-term engagement
  5. They have expanded their product offerings beyond traditional insurance coverage, such as offering investment-linked products or innovative digital insurance products that cater to changing customer needs around the agricultural sector
  6. Their focus is on building trust and transparency with clients by being open and honest about their products and services, as well as providing clear and easy-to-understand policy terms and conditions.

Related Content: Here Are 12 Branches Of Takaful Insurance Of Africa With Contacts




About Steve Biko Wafula

Steve Biko is the CEO OF Soko Directory and the founder of Hidalgo Group of Companies. Steve is currently developing his career in law, finance, entrepreneurship and digital consultancy; and has been implementing consultancy assignments for client organizations comprising of trainings besides capacity building in entrepreneurial matters.He can be reached on: +254 20 510 1124 or Email: info@sokodirectory.com

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