Exploring the Benefits of Technology for Retaining Clients in Insurtech

For years, Kenyan firms in the motor insurance sector have experienced losses. In 2022, the Association of Kenya Insurers (AKI) reported an aggregate underwriting deficit in motor private and motor commercial of KES 6.96 billion. In spite of this, relationships between owner Insurers and Brokers have yet to lead the way in motor insurance innovations. Most insurtech products in Kenya depend on existing insurance firms to fulfill essential roles [AKI, 2018]. To maximize profitability, Insurers and Brokers must own the relationships they have with their clients. This can be done by focusing on both gaining new clients and retaining existing clients. This implies In order to gain a deeper comprehension of the difficulties faced by clients who have obtained motor private insurance policies from multiple Insurers/ Brokers, I interviewed Jack and Anne. Both of them had purchased extensive coverage from a minimum of 2 distinct providers. Based on statistics from AKI, in 2022, the total premium for motor private was KES 28.55 billion (representing 52% of the whole), while motor commercial had KES 26.66 billion (48%). Subsequently, I focused my attention on motor commercial policies. Airtable provides a platform for embedding the appLiIO5k9EUtQHFw/shrayynDe9Vir5zaj with a purple background and view controls visible. Examining the topics articulated by Jack and Ann, the highlighted user difficulties can be classified as follows: Terms that are hard to comprehend or clauses that are not prominently stated in the policy can cause problems for the customer when they want to make a claim, such as when the worth of the car is reassessed when the claim is made and ends up being different from the insured amount (which is used to calculate the premiums). They only interact with the Insurer/Broker when making premium payments and filing claims. For the remainder of the policy duration, there is no enhancement of the relationship with the insurance provider. A lack of clarity, transparency, and simplicity when it comes to claiming and understanding the protocols. The Insurer/Broker fails to have control of the repair procedure. Questions about the dependability of an Insurer or Broker in regards to honoring claims. With the goal of improving retention of insurance providers in mind, I will concentrate on the filing of claims and value-added services while the policy is in effect. We look at the journey of a private motor insurance customer. Options for creating a more dependable claiming system may involve a product with the subsequent characteristics: This Insurer/Broker provides instructions on how to submit a claim and alert them when an accident happens. The client is given the option to alert the Insurer/Broker of an accident either via chat or call, and this notification is recorded as an initial report. Upon request, the Insurer/Broker can organize for a tow truck at the client's preference and expense. This service enables a customer to keep track of the progress of their claim and the state of their automobile while it is being repaired. The insurance company should assign a case worker to every claim in progress. This case worker will track the claim's status on the system and include photos of the repaired vehicle as part of the progress updates. Analysis of the solution's features: Check out this [Airtable](https://airtable.com/embed/appLiIO5k9EUtQHFw/shrAEZYpsyE75zdwb?backgroundColor=purple&layout=card&viewControls=on) with a purple background and card layout for view controls. In order to calculate the retention rate for insurance companies, it will be necessary to calculate the percentage of customers that renew their policies every year with the same provider. An awareness campaign to raise knowledge of how simple it is to make claims, assume responsibility for the relationship, and carry out repairs with the help of the Insurer/Broker, can draw in new customers whose numbers can be monitored each year and after each media campaign.

Source: https://medium.com/@mercykiptui/insurtech-the-product-case-for-technology-in-client-retention-85d9aa9b1d4b?source=rss------fintech-5