Remote willingness by insurers to disrupt existing business models puts underwriters and brokers at risk of losing huge revenue margins to tech start-ups, Association of Insurance Brokers of Kenya has warned.
The association has decried the slow pace in adoption of new technologies by operators in this segment of financial sector, despite a global acceptance that disruptions are at play across industries.
It has committed to push its members seen to be centrally placed in coming up with new innovative opportunities to make bold steps to help the industry shrug off ‘uber effects.’
“Organizations are still reluctant to move fast, fearing the unknown. We will end up being fast followers and thereby missing all the opportunities,” warned new AIBK chairman Nelson Omolo.
The brokers lobby say the insurance industry will need to transform from a traditionally risk averse culture to one that encourages experimentation to stay afloat.
Players in the industry are currently unable to improve their operational and technological processes due to lack of knowhow on technological integration that holds key to unlocking millions from burgeoning middle class seen to push uptake of insurance products.
“There is no short cut for brokers and underwriters looking to make the most of the new world of opportunities other than encouraging cultural transformation and leveraging on technology,” said Omolo.
The Fairsure Insurance Brokers, managing Director replaced Muchemi Ndung’u as the chair of the AIBK board following expiry of his four year term in March.