How Kakbima plans to leverage on Technology to increase insurance penetration in Africa

1. Developing an integrated technology for the
enhancement of insurance penetration
Bertrand Omuga
CEO, Kakbima

3. Towards a future state insurance
The current approach to insurance is solving one problem
and creating the next one.
We love and envision the result, but not the daring
process to get there.
The paradox that insurance is inherently ‘risk taking’

4. What stagnates our insurance?
Legacy- complexity of process, distribution channels/access, trust,
technology patches, insider ‘expert perspective’…
Culture- Risk averse culture of insurers yet the industry is about risk
taking, trust, Convergent ‘expert’ thinking (we have always done it
that way)
Indebtedness to traditional channels- Agent vs broker, Apification
of everything
Nokia leadership were once asked what caused their
downfall. Their response was to the effect that “we
didn’t fail because we did something wrong – we just
went on doing the right thing for too long.”

5. Kenyan insurance perspective (2017)
Total Industry Premiums = KES 209.7 billion
Gross written premium for Non-Life Insurance = KES 126.05 billion
Gross written premium for life - KES 83.65 billion
The insurance industry premiums grew by 6.5 %
The insurance industry PBT - KES 12.01 billion
Industry Net Claims- 110.0% in 2017 from KES 85.42% in 2016
Global
EY Global Consumer Insurance Survey
44% - Customers who have had no interactions with their insurers in 18 months
38% - Customers who claim to be advocates but cancel policies or switch providers
80% - Customers willing to use digital and remote channel options

6. Who is the real insurance
competitor
• Culture
• Harambee
• Chama
• Church
Sample typical response?
• Race to the bottom- price wars
• Me too products
• Lets get an App/bot
• Technolust

7. End Result of weak proposition

8. Insurance disruption will come from the least expected channels

9. Insurance is in need of a new integrated focus &
business model
Access, transparency, simplicity , trust

10. Simplify the Insurance Value
chain and make it transparent
Start with the most pain
Business and
enterprise model
Digital strategy- what, why,
by when. Agree on the
measure through evidence-
based goals
Resources-
finance, HR , legal
Marketing and
distribution
Customer- acquisition , service,
retention Quality
management

11. But legacy is too powerful
How do you sell a promise to potential clients?
Who is brave to damp the digital ‘lipstick’ approach on
tackling insurance challenges
Insurance needs a “DO TANK” not a “THINK TANK’
• Start-up culture
• A better outcome is not simply a matter of better
technology. Culture and a willingness to embrace
change also matter.
• Test-and-learn approaches; pilot, test, learn, modify ,
implement.

12. New Integrated approach
‘’You can’t run innovation projects by committee. Committees mean
consensus and consensus takes you to the lowest common
denominator - use of legacy thinking to innovate’’ Robin Merttens
• Innovation– explore natural and un-natural collaborations
• Agility – time to decision and test
• Workforce – re skill, adapt
• Innovation framework- what is your strategy?
• Ecosystem integration – client single view, complexity at the backend
Embed digital governance into existing processes to make it part of business-
as-usual operations

13. What is different?
Traditional insurer - Reactive, risk impact mitigation-
oriented, relies on demographic and historical
information, rule-based decisioning
Digital insurer - Proactive, risk occurrence monitoring,
prevention-focused, incorporates rich real-time data, data
driven decisioning

14. Kakbima’s 360 degree channel
integration approach;
Customer
Product
Underwriting
Marketing and
distribution Claims
Service &
Operations Support
Collaborative APIs

15. T H A N K S !

16. w w w . k a k b i m a . c o m