How the insurance sector can play a role in Africa’s recovery

The insurance sector in Africa is playing a significant role in the continent's economic recovery amidst the challenges brought about by the COVID-19 pandemic. Nizar Juma, Chairman of Jubilee Holdings Limited, shared insights on the strategies implemented by the company to support its customers and maintain stability during these trying times. The pandemic has affected everyone globally, prompting Jubilee Holdings to prioritize customer support by adopting a kind approach to assist those facing financial difficulties. The company extended job opportunities to customers unable to pay premiums and adjusted prices to be more reasonable. Additionally, they focused on reducing expenses by 20% since March, which contributed to maintaining a stable top line and bottom line amidst the uncertainties surrounding the business landscape. Juma emphasized the shift in perception towards insurance in East Africa, particularly in Kenya, where many viewed it as a luxury only affordable for the wealthy. The outbreak of COVID-19 highlighted the necessity of medical insurance, leading to increased awareness among the public. This awareness, coupled with efforts to educate the informal sector on the importance of insurance, aims to address the low insurance penetration rates in the region. Despite the awareness created, insurance uptake remains low, primarily due to credibility issues within the industry. To overcome this barrier, Juma highlighted the introduction of bank assurance, allowing customers to purchase insurance policies through banks, leveraging the trust associated with financial institutions. Education initiatives, promotions, and wellness programs are also key components of efforts to enhance public understanding of insurance. Technology emerges as a crucial enabler to drive insurance penetration further. Jubilee Holdings has invested significantly in technology, partnering with Aliens to introduce innovative solutions targeting the younger population accustomed to digital interactions. The company is developing apps and online platforms for product purchases and claims processing to cater to evolving consumer preferences. When asked about the financial investment in digital transformation, Juma mentioned an approximate annual expenditure of around five million dollars. This investment not only supports digitization efforts but also addresses fraud prevention by implementing systems in collaboration with healthcare providers. Despite some resistance, the company remains committed to leveraging technology to enhance efficiency and customer experience in the insurance sector. In conclusion, the insurance sector in Africa is adapting to the evolving landscape by embracing technology, enhancing customer support, and promoting awareness to drive growth and contribute to the continent's economic recovery post-pandemic.