?Insurance industry in Kenya is faced by several challenges that make their operation in the Kenyan market difficult. These challenges are dependent on the people, the status of the market, laws governing insurance in Kenya and the lack of proper information about insurance. The Kenyan people don’t have enough trust in the insurance business mainly due to the number of unpaid claims that remain in the market. Many claims have not been paid due to prolonged investigations to the point that, rather than other insured’s recommending insurance to their friends, they end up discouraging them.
Most of those who seek insurance always do so in order to gain the benefit of tax reduction that comes with the package. The Kenyan market is also a young market that is still not well versed with the diversity of the insurance industry because many people are not used to paying premiums in order to alleviate the risks. Most Kenyans therefore consider these rates high and therefore they don’t seek insurance. This has been bad for business in the industry as most insurance companies strainito meet their budget and pay claims.
Some have resorted to unethical means of luring customers into this industry through inadequate rates leading to inadequate claims paying ability. Mismanagement of insurance companies is also a notorious factor that hampers insurance industries in Kenya. Some insurance companies lack proper management due to lack of transparency, which has led to customers losing their money in the process and thus making the public lose trust in the industry.
Incompetent management could lead to unrealistically low premiums that make insurance affordable yet not payable. Incompetency is also found in the relay of wrong messages to the public by insurance agents who are often unqualified. Laws set by parliament to govern the insurance industry have also sometimes failed to meet the unique needs of the third world market. When insurance companies are forced to pay large amounts of money for licenses and that burden is passed to the public, rates are affected.
Dishonesty by the public has also hampered business in Kenya, such as by duplication of coverage so as to attempt to realize doublt recoveriesLack of a big pool of customers has led to problems in realizing the “law of large numbers” on which insurance is predicated. Lack of proper research has led to decision making, especially as to insurability of risks and setting rates and premiums accordingly. h ere are some cross-promotion strategies that can really help your company stand out: Co-produce special promotions you could not afford by yourself.
Hire local community college broadcasting/cable TV students to produce a “how to use” video and/or audio tape that involves you and your partner’s products. Have a contest, with the prizes contributed by your partners. For the next contest, roles change, and you contribute your product or service as a prize for a partner’s contest. Give customers a free product or service from a participating partner when they buy something that month from all of the partners listed in an ad or on a promotional postcard.