Why tech-savvy young Turks are hot cake at helm of microinsurance

The insurance regulator says it does not want old Turks to handle novel insurance products and downplayed requests to amend the regulations in the sector.

Insurance Regulatory Authority (IRA) Director of Supervision Kalai Musee, who spoke during the rebranding of Britam Microinsurance to Britam Connect recently, said implementing new products needs moving away from the conventional way insurance is done.

This is because of the role that technology plays in improving access which he said cannot be ignored.

Mr Musee, while detailing the approval process of Britam Connect, said the licence took longer than planned due to the authority’s stance not to approve individuals in the conventional insurance business.

“I know when we were giving you the licence, we had a lot of discussions in that respect. I can tell you; you brought names of people to approve and we rejected them. We said no way,” he said.

He said the sector needs people who can shift from the conventional insurance as it is known and do things differently. “And it is one of the reasons the licensing delayed the way it did because we stood our ground, we said people in conventional insurance, no. We are not,” he said.

Mr Musee said if insurance coverage is going to improve, there is need to relearn the traditional ways insurance has been done.

“We want to move totally from that kind of thinking. We want people who can shift from the conventional insurance we know and do things differently,” he said. “I get many people asking how can we pay insurance in 10 days.”

Mr Musee downplayed requests from some players to amend regulations saying some of them have not even implemented the same.

He said when the microinsurance regulations were enacted in 2020, the authority was concerned that businesses were not coming forth to be registered. “Nobody was coming to apply for a licence. You are among the first that we have given you a licence,” he said.

He noted that his office has received requests to amend regulations with some aspects of it touching on customers. “We have been receiving a lot of requests some of them saying we need to amend the regulations and I ask; how do you amend what you have not implemented? If you look at the requests we are getting, the areas touching on customers are the ones being targeted,” he said.

He said for micro insurance; the customer is key even more than conventional insurance. “This is a customer who is at the lowest level. They cannot defend themselves and that is why when you look at the regulations, they are targeting the protection of the vulnerable customer,” he said.

Mr Musee said the solutions provided under micro insurance should be simple and accessible through the aid of technology. Britam Connect acting Chief Executive Evah Kimani said the rebranding aims to bring insurance closer to the customers they serve with a continental view to expand its reach.

“Our goal is to make sure we have at least 25 million customers within five years,” she said. “We believe that is achievable to ensure that the solutions we provide are simple, affordable and more importantly, they speak to the needs and risks of our customers.”

She said through technology; the firm has been able to reach gig workers among them taxi and bodaboda drivers who work with Little, a digital taxi-hailing platform.

This is embedded in insurance solutions in their everyday lives for example mobile money transactions. “We have worked with Safaricom to embed personal accident cover on its internet solution. We have also worked with Airtel to embed a health product on mobile money,” she said.

Trips covered

Mr Kimani said such solutions have made it possible for their customers to have their trips covered for as low as Sh5. “For example, in case of an accident or you lose your valuables, you are able to be compensated by Britam,” she said.

Majani Brokers Insurers Ltd, a wholly owned subsidiary of Kenya Tea Development Agency - is the other entity that Britam Connect has a partnership with. 

In partnership with Britam Connect, they have a product dubbed ‘Kinga Mkulima’ that provides health insurance to small-holder farmers.

The product has 200,000 farmers covered which brings the total number of dependents to 600,000.

“It is flexible and does not affect other expenses for farmers. We took into account the needs of farmers and diversity. A monthly premium ranges from Sh360 a month. There are still people who pay Sh85 and can still get a cover,” said Pauline Mwangi, Majani Brokers Insurers Ltd General Manager.

“Through the partnership with Britam we have expanded inpatient cover that was the traditional product to also incorporate outpatient. The product is now comprehensive in and outpatient.”