CORPORATE SCENE
How have you ensured inclusivity in the area of gender parity in your organization ?
Kenya-Re is a very inclusive organization , as we believe diversity brings to the table unique strengths and skills resulting in a stimulating working environment . In fact we were ranked sixth best in Kenya in a special Gender Equality in the Workplace Report that evaluated 60 listed companies . Our strategy starts at hiring as well as creating an open minded culture at work . This has resulted in women making up 51 % of our work force . Indeed as far back as 1997 Kenya-Re had the first woman chairperson ring the bell at the NSE when we went public . In addition our employees represent the face of Kenya and this is true in all countries we operate in . Paying dividends wherever possible is our way of spreading our investment and it ’ s important that we fulfil this obligation given that we encourage locals to buy our shares in the countries we operate .
How have you leveraged the digital revolution ?
Though the industry has been conservative and slow to adopt new technologies it is slowly waking up to the realization that it ’ s a necessity . At Kenya-Re we continue to use technology for example using big data to process information that enable us understand the changing customer , deliver more meaningful products and increase our efficiency reducing our operational costs . Furthermore access of information about us and our products is easily done online and we have embraced platforms such as Twitter and LinkedIn . Indeed HR functions such as recruitment leverages on technology .
We are also aware that the demographics are changing and within a short time Millennials , who are more technologically savvy , will form a majority of the workforce from where our employees will come and our customers as well . We are well prepared for this .
What is the outlook of the African Insurance and Re-insurance business in the current terrain ?
While insurers and reinsurers have been able to absorb the underwriting impacts of large loss events such as Covid-19 , the impact of insurance companies ’ profitability is still uncertain . Despite the efforts being put in place by governments to cushion the public from the adverse economic effects of the pandemic , the outlook on long-term impacts and recovery from the pandemic is still uncertain as it will take time for businesses to recover . With stock markets showing declines in performance and flattening yield curves , businesses are set to experience poor performance in their investments , and this will flow through to their bottom-line results .
“ Undifferentiated products offering more or less the same benefits provide a fertile ground for price undercutting . This duplication is due to lack of or slow pace of innovation in the industry . Undercutting , which undermines the growth of the industry , is not sustainable in the long run ”
What do you see as the future of the Insurance Industry ?
I start by being blunt , some insurance players will disappear ! In the first place the industry is conservative and slow to embrace change , which is not sustainable in the ever changing environment we are operating in .
Those that survive need to do two things . One is to be very customer focused . This will answer the questions which products will be relevant in the future and how will the customer want to be served ? Investing in research and data mining will be important . The other is to embrace technology as an enabler , ‘ the difference between desire and ability ’. The future consumer of insurance is young and technologically savvy and the customer is increasingly becoming faceless . This brings me to the second point of embracing technology . Added to this is underwriting discipline and putting an end to price undercutting which I highlighted earlier .
Also important will be the need for the players to be learning organizations , continuously scanning the environment and responding accordingly . The Government too must play its role of facilitating and enforcing compliance such as the one month claim payment period . For timely claim settlement is important in building a good reputation , and an important ingredient in growing insurance appetite and uptake .
Having said that , however and despite the challenges leading to low penetration the future looks bright . I say this because there are new sectors opening up such as mining , oil and gas extractives , and marine providing opportunities to our industry . A young well educated populace is also an opportunity as they are more likely to warm up to insurance being more open minded .
Parting shot ?
Kenya-Re will continue to implement its 2017-2021 strategic plan in view of the changing market requirements through the annual reviews documented in the annual business plans . This will ensure we remain focused on the achievement of the set strategic objectives of sustainable and robust financial growth , maintaining systems and processes that address business needs and stakeholders ’ interests , growing and diversifying quality portfolios for business sustainability , maintaining robust risk management initiatives and developing human resources and culture to match the Corporation ’ s performance requirements . ■
These are excerpts from the discussion with Kenya Reinsurance Corporation Limited Managing Director Jadiah Mwarania as recorded by the Marketing Africa Crew . For more information or comments drop us a line on :
Info @ marketingafrica . co . ke
MAL 44 / 21 ISSUE 15