Unlike the banking sector that has shown tremendous improvement over the last decade, insurance companies especially those highly depended on motor insurance cover as their core business have been struggling.
Analysts are of the opinion that the main reason for the dismal performance of this arm of the financial services sector is fraudulent claims that have over the past years led to closure of many leading insurance companies. Seeing that this aspect of business has largely affected their bottom-line, insurance companies have been shying away from Motor insurance and concentrating on the more predictable but yet to be embraced life covers.
Having operated for 28 years under a composite insurance provider, Blue Shield Insurance, Shield Assurance has finally de-merged from its former partner and intends to re-brand soon. With a new focus and brand Shield plans to come out strongly with affordable products positioning it self as an organization which is going to give services to both rural and urban populace.
Shield Assurance which was trading as a division under Blue Shield Assurance which deals in a near stranglehold motor insurance has for the last nine months been operating as a new outfit after the government through the Insurance Regulatory Authority (IRA) gave it the green light to deal independently in finance insurance since November 2009.
“The Assurance has a mission and a goal which is, to willingly embrace the needs of those at the middle and low end by offering good and quality services to both the rural and urban Kenyans with a bias on teachers, police, chiefs’ and civil servants.” says Mr. Nzioki Ndeti, the company’s Marketing Manager.
Giving examples of major products that they are offering to the society he contends that earlier, most people thought that the composite underwriter was an entirely PSV Assurance which was not the case but on the contrary Shield Assurance as a division in the composite was also active with life insurance provisions. He noted that the firm continues to operate its already existing 34 branches but separately with an eye to expanding its footprint while adhering to proper corporate governance, maintaining efficient risk management, strengthened management information systems and on time policy holder compensation.
Since the separation Mr. Ndeti says, Shield Assurance has positioned its products on the market. He also reveals of plans to re-brand some and roll out new products soon as Shield can now perform better due to focusing in one line now with reduced line decision making in management, finance and innovations. Among its range of products Shield assurance has three major products, “the Education policy which is designed for child’s education care. This policy is not only meant to meet every possible need of a wise parent wishing to protect his or her child’s education while the parent is alive but also in case of unfortunate demise of the parent.” He added that the policy is designed in such way that it allows gradual build up of savings which are invested by the company for the benefit of the child. The plans ensure proper timing so that the money is available as and when the need arises for high and tertiary level of education.
“The second product is the Uzima Tele Medical cover which is an in and out patient saving plan and it’s a unique with payback or rollover provisions targeting individual and groups with low income. Uzima tele is a premium product of affordable rates especially to women groups, youth and the Juakali practitioners.” He says that a capped medical saving account will be opened for a policy holder and access provided in an agreed medical facility. The policy is ideal since this money belongs to a policy holder and can be carried over to the next policy year if it’s not spent.
The third major product that Shield Assurance provides is the Tourist saving plan. Ndeti reinforces by saying that “a very small percentage of our citizens don’t get to tour around our country due to high expenses which is killing our local tourism. Shield Assurance has come out to change this notion since it will enable individuals to save for a holiday with five year maturity period from the start of the cover in a structured manner.” It gets better to learn that the policy holder can use 10% of the savings every year for a local holiday with family. Another unique policy is the Guard policy for security personnel and watchmen.
Asked how the company has leveraged on ICT and on the landing of the fiber optic cable to further push their products in the market, he says that ICT has really grown globally and can now be easily accessed. “ICT encourage customers to pay their premiums through faster and instant means as M-pesa. This is less tiresome and am impressed that our services can be accessed with ease and reduces costs.”
“Dealing with an individual is our total base of the assurance. Life assurance is sold but not bought, its uptake is poor and our aim is to encourage more people to embrace ICT by filling forms online, pay premiums through M-PESA and as a company carry out awareness campaigns by use of new technology and unique approach. For instance going market places where we educate people and advise them to buy the premiums there and then.” Says Mr. Ndeti
On the contrary to the individual approach Mr. Ndeti who is the Marketing Manager explains how they reach their clientele, “We have new market regions with four branches so far and are still creating more others country wide in order that our products reach every one especially the rural folks. We keep both internal and external continuous training and also encourage our staff to take courses on what they do so as to be more skilled. We have a team building culture where by we encourage them to come up with more ideas to deepen our services.”
Besides striving to achieve their goals, there are challenges that any underwriter has to grapple with. Ndeti decries the low life insurance penetration in
Mr. Ndeti assures its current and potential customers that Shield Assurance is a fully registered company hence they should have no doubt about it since it operates on its own. “We operate as an independent assurance company not a division with an aim of serving both the rich and the poor and participate in their growth and development as an Assurance.”
He hastens to add that the insurance provider is very unique compared to other companies. “When you look at the benefits of our products you will notice that they are cheap and affordable. We keenly look at where we are heading to and studies what the public want then we come up with innovative products to suit their needs.”
The Shield Assurance has a vision and he says, “The growth of life insurance will depend on the economy of
In conclusion Mr. Ndeti remembers one thing which made him happy and proud. “During the global warming issue Shield Assurance refocused our business the life insurance way and have largely increased policy holder’s. In the next five years we will double our revenue as we focus on as one unit.”
On the company’s CSR philosophy, Ndeti opines “We’ve and continue to offer scholarship to bright needy students; we also go to rural schools to offer sanitary towels and a feeding program at Mama Ngina Children Homes and Ukambani.
I am proud that we are heading to the people needs. My customer is the king and we are there to bring our products to them.
“We are a responsible corporate and we ensure that our customer’s claims are settled on time for a mutual benefit,” He concludes.
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