The largely uninsured population are set to experience insurance services after the launch of a dynamic mobile based personal insurance cover by the insurance provider UAP.
The product, Salama sure provides the consumer with an end to end transaction system through the use of mobile phone as customers need to register, pay and report claims via the device.
The company’s Managing Director, James Wambugu, termed the product as the first of its kind in the African region adding that it will create a revolution in the selling of insurance, reaching the large population that has lacked accessibility of the services for a long time.
“The use of mobile phone platform to sell insurance is revolutionary, it will definitely change the landscape as consumers can conveniently and cheaply take up cover,” said Wambugu.
“Through the mobile device, consumers will have the exposure in understanding the simplicity and importance of having the cover” he added.
Wambugu said the technology will greatly aide in enhancing growth of insurance industry by increasing the penetration of services to the unreached, while providing more Kenyans with an opportunity to protect themselves from the increasing rates of accidents.
“This will contribute to the industry’s growth efforts by increasing the rate of penetration which is currently low,” he said.
Currently insurance penetration rates in Kenya stands at three percent of Gross Domestic Product (GDP) compared with over 14 percent in South Africa. UAP accounts for six percent of the total insured people in the country.
Instead of the normal procedures of using application forms, customers requires only an identification or passport number and a connection of Safaricom line with a registered M-pesa service.
The launch comes at a time when the country is experiencing an increased rate of road accidents and fire outbreaks with the recent fire outbreak consuming more than a hundred lives after an explosion of an oil pipe.
Wambugu added: “UAP is on the forefront of demystifying insurance by making it simple,relevant and accessible to the majority of Kenyans.” this he said will ensure better lives through deliverance of peace of mind and financial freedom.
The product that took over two years to develop was put under a one week piloting project and has since seen the company registering a total of 3000 consumers.
With a minimum of seven shillings per day or Sh200 renewable per month on premium, one can get a cover worth Sh100 thousand and with a maximum of Sh400 per month the customer will benefit from a cover of up to Sh500 thousand in case of total permanent disability or loss of life, making it affordable to all Kenyans.
“In terms of daily costs for a cover of Sh100 thousand,the customer will only pay seven shillings, this should make it affordable to most Kenyans,” said Wambugu.
He termed the innovation as a game changer citing that the company is committed to developing new and innovative products that responds to consumers diverse and changing needs adding that the platform will allow the company’s large network of agents and brokers sell the products to clients.
“ This is going to be a game changer in the insurance industry, it will cover loss of life, accidental permanent disability, medical expenses due to accidental injuries, funeral arrangement expenses along with artificial appliances like the crutches,” he explained.