Allianz bets on technology to penetrate Kenyan market

Allianz bets on technology to penetrate Kenyan market
Coenraad Vrolijk Regional CEO Africa Allianz and Oliver Baete, Chairman of the Board of Management of Allianz SE engage with Demba Sy, CEO Allianz Insurance Co. of Kenya Ltd during the Chairman's visit to the Allianz Kenya offices

Global insurance firm Allianz has announced plans to incorporate data to create risk segmentation and price insurance premiums as it seeks to deepen access to the Kenyan market.

Allianz set up its operations in Kenya in November 2016.

The firm is leveraging on its global network and cutting edge practice to differentiate its products and grow its market share locally.

Allianz SE Board Chairman Oliver Baete while insurance penetration has remained low, most firms have relied on rigid pricing tools that have made selling insurance products that more difficult.

Mr Baete said most insurance firms have generally lumped all clients into one pool, limiting options for those who may want to seek better terms.

“We are the world’s largest general insurance company and we have enormous pools of data. In terms of risk segmentation and pricing we can bring quite a few things to the country based on the experiences made elsewhere whether that is motor insurance based on driving behavior or using other data sources to assess risk,” Mr Baete said.

Allianz is currently focused on motor and house insurance, with the firm looking to leverage on attractive premiums and faster claim processing to woo customers.

Insurance penetration in Kenya stands at 2.9 percent.

Mr Baete said Allianz would partner with local financial services firms such as banks and distributors to enable it penetrate the local market.

“We need to use other data sources to asses risk such as credit scoring and behavioral data like what your shopping behavior is will enable us understand the needs,” he said.

Allianz is banking on the technological advances and surge in mobile payment systems to develop products for the digital age.

“You have one big advantage with Kenya and that’s the technology base you have. With the payment system such as M-Pesa and the huge leaps in technology, you get very efficient methods to create products and to service them unlike in other countries where they heavily rely on physical insurance structure,” Mr Baete said.

The firm is looking to introduce life insurance and health insurance over the next 18 months.

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