Insurance Firm Admits Poor Service Delivery

By Godfrey Tung'wet Posted 22 July 2006 @ 09:54 pm EET     Print     Reprint     E-Mail     Comments

NAIROBI (IBTimes.com) - The insurance industry is riddled with inefficiency, a key player admitted on Friday.

And the industry, it noted, would have to reform itself to survive the competition facing it in the wake of the entry of more firms in the sector.

A meeting of insurance underwriters and agents in Kisumu yesterday also heard that despite the increased number of firms, not enough was being done to address the needs of the insured.

According to Insurance Company of East Africa (ICEA) general manager Njoroge Mbuchucha, poor underwriting discipline and illegal possession of premium to influence business by the agents were among the challenges that the industry faced.

He said there were more than 40 insurance companies competing in the crowded market.

"Our approach to business must be driven by quality, integrity and professionalism in the provision of services so as to improve on business," Mr Mbuchucha told those gathered at Imperial Hotel.

He told them that their survival would depend on improved business retention strategies such as an expeditious response to premium rates and processing of claims.

"All companies in this field must put emphasis on good service delivery by expeditious processing and quality sourcing," he said.

However, he stressed that ICEA was committed in its vision and mission of providing quality services that would keep it at the top of the competition.

The meeting had been organised by ICEA for its agents and business partners in western Kenya as part of its new marketing drive. Participants were drawn from Siaya, Kakamega, Kisii and Kisumu.

The company's Kisumu branch manager, Mr Richard Atemba, and the general manager in charge of life and pension, Mr Justus Mtiga, explained that they had devised new market-friendly products that would spur the presence of the company in western region.