The lifestyle of today’s motorists is cashless, paperless and mobile-fast. To keep pace with the new customer dynamics, motor underwriters have had to invest in product innovations to suit customer tastes.

First, while it was common to see motorists pay for only third-party insurance, the current scenario reflects differently, with most customers now seeking comprehensive risk management solutions that cover vehicles and offer a wider scope of benefits and services.

Secondly, while insurance products were largely sold via insurance agencies and brokerage firms, Kenya has witnessed an internet revolution that has prompted the development of mobile software that creates a marketplace for insurance products.

The “digital migration” can be mostly attributed to Kenya’s tech-savvy population from the widespread use of smartphones and increased internet penetration in the country which stands at 32.7 percent internet usage,  accounting for 17.86 million users.  

According to the Communications Authority of Kenya, mobile devices reached 67 million in the last quarter of 2023, representing a penetration rate of 127.5%. Of these, feature phones accounted for 60.6% of the market, while smartphones made up 58.3%. Using digital platforms to offer risk management solutions therefore provides an unparalleled opportunity to connect with consumers across the country round the clock, on weekends and holidays.

Earlier this year, CIC leapt forward in digitising motor vehicle insurance with its new entrant Easy Bima. The product came to offer innovation and flexibility of insurance products making them more affordable, with clients being able to spread the cost of comprehensive car insurance over 12 months. The product has been well-received in the market, with peak activity reaching up to 200 insurance purchases in a single day.

This highlights the innovative solutions that can now be offered to Kenyans with a deep understanding of the economic challenges people face today, where disposable income has been impacted by rising costs and inflation.

Unlike traditional motor insurance CIC’s Easy Bima, takes a customer-centric approach where it emphasises customers, especially during these harsh economic times. Customers make an initial payment of 20% of the total premium, with the remaining balance divided into 12 equal monthly instalments.

This flexibility is aimed at making motor insurance affordable while unlocking much-needed capital to run individual or corporate businesses. So to speak,  Kenyans can now protect their valued assets without putting themselves in difficult financial positions.

The Kenyan insurance industry now more than ever lies in embracing technological innovations in in-house operations and processes as well as customer-facing innovations.

In motor insurance, telematic insurance is becoming the order of the day where motorists are being rewarded for their good driving habits with low premium payments.

Such steps showcase the commitment towards affordability, accessibility and seamless experiences all while staying ahead of the curve in an increasingly competitive market.