Innovation-Automated Handset InsuranceAfrican Insurance Distribution and Bancassurance

Conference 12th - 13th October, 2016

Presented by

Muema MuindiManaging DirectorKenya Orient Insurance Ltd

Innovation

Innovation is the combination of activities and technologies that breaks existing performance trade-offs in the attainment of an outcome in a manner that expands the realm of the possible ….. Deloitte Research Distinguished Fellow Michael Raynor.

The future of insurance lies in innovation

Why innovate?

Asking “WHY NOT?” is a good way to advance the innovation process.

Driven by the need & the lack of available solutions.

Driven by risk.

Competitiveness.

Excellence.

Change.

Change is the key component of innovation…

Components of innovation

The need for change

2016 (June) Internet Penetration by Region

25,10%

41,60%

41,90%

66,60%

79,10%

65%

Africa Arab states Asia Pacific CIS-Caribean islands Europe Americas

Role of innovation Vs insurance penetration in Africa

Analogue

Digital/Innovation

TraditionalThe needFor more

cosmopolitan products-value adds

An emerging generation on

the move-looking for convenience

The Need for innovation in our strategic agenda……………..

Telco's starting to enter the insurance

market.

Banks Playing Actively in the Insurance Space

Asia, Europe & the Americas choice to penetrate the African

insurance Frontier

DISRUPTION!

Breaking from traditional insurance practice

Embracing technology

Traditional Insurance practice

Influencing micro/macro environment

Embracing technology BIG DATA

Enhanced operational efficiencies = enhanced customer experience.

Reactive to preventative business model

From a structured data/tactical decision-making/reactive business model to an unstructured data/strategic decision-making/preventive model

AUTOMATED HANDSET INSURANCE

Kenya Orient case study

About Kenya Orient

Why Mobile Insurance?

• 2 out of 3 people in Africa have mobile devices

(www.statista.com)

• On average, a person reaches for their mobile phone 150

times a day

• Mobile devices are driving healthcare, taxi, transactions,

sharing your opinion, engaging with people, shopping etc.

• The customer proposition:-

• Enhanced value for money

• Assurance for their device

• Peace of mind

• Benefits that they cannot reap from warranty

Orient Mobile case study

Orient Mobile is a stand alone insurance that covers phones and tablets against accidental damage, liquid damage, loss and theft.

Consumers are entitled to 2 incidents of screen damage or liquid damage (2 incidents covered of screen repair + Liquid repair or 2 screen repairs or 2 liquid repairs)

• Risk 1: Damage to the screen as a result of external impact / deliberate action of third party

• Risk 2: Fails to work because fluid has entered in its internal circuitry

• Insurance period: 12 months

How Orient Mobile works

The processSmart phone technology:-

5

Claims procedure

Retail processClient registers claim

online and is directed to Dealer outlet

Outlet collects phone & claim documents from client and completes online checklist Device forwarded to approved

Service Centre

Service Centre provides recommendation to KOIL

KOIL authorizes claim and advises Dealer via portal/

automated email

Dealer can log into portal at any time to view claim status

Dealer outlet passes repaired or replacement

device back to client

Dealer provides monthly invoice to KOIL showing details

of each claim

Dealer system updates client via SMS and email

Documentation Requirements:• Claim Registration Form (emailed to client after successful claim registration)• Damaged device• Device Purchaser or Owner’s Original & Copy of ID (must be one of the names given at time of insurance activation)

Success factors

• Strategic partnerships through retail dealers.

• Fast growing-mobile usage penetration in Kenya

Success factors- Brand Equity

Ranked 12th Position in Africa in the insurance category and the insight derived from this was on response time

Challenges

• Lack of support/negative attitude from aggregators.

• Fraud

• Counterfeit handsets

• Low internet penetration in rural areas.

The future of Mobile Insurance

High Potential growth with increased internet penetration in Africa.

Strategy for future growth

Continuously finding and implementing small changes that make our lives and environment better and better

ConclusionThe innovation journey cannot be achieved at status quo

The Comfortable don’t innovate. The Bored don’t innovate. Successful innovators are not expert solution finders;

they are expert problem finders. Successful innovators are not found, they are developed. Innovation should be unexceptional, not exceptional.

http://www.sunwords.com/the-bigger-deal/5-slides-with-sunny/

Your 5 take away points

Innovation & strategy

• Make innovation part of the process-Innovate your systems.

• Captivate an innovative culture within your people.

• Create an innovative value chain with your suppliers & stakeholders.

THANK YOU

Asante