InsurTech: The changing insurance customer in East Africa

Over the past decade, the major economies of East Africa have experienced significant and sustained periods of growth, this has not translated directly to the insurance industry.

Part of the challenge lies in the balance of providing operationally efficient services to customers while ensuring that costs remain low. In a crowded and competitive market like Kenya, this is creating an opportunity for tech entrepreneurs to bring a fresh approach. We take a closer look at the market drivers and some of the innovative solutions that are putting the customer at the heart of the insurance industry.

The insurance industry is growing but penetration rates are falling

Gross written premiums have increased in Kenya by 3.5% but the insurance penetration rate has fallen from 2.7% to 2.4%

Industry incumbents are exploring digital solutions but limited to those that disseminate information to the customer only

80% of the websites or web applications developed by the major insurers provide product information, while only 14% enable a customer to purchase insurance directly

Technology is helping to provide customer-centric solutions to the market

Policy aggregators, product lifecycle management tools are starting to disrupt the industry reliance on intermediaries to manage the insurance lifecycle. While artificial intelligence (AI) tools are helping to streamline the underwriting and claims processes in the car insurance sector.

This report was first published in November 2019.