Digitise personal accident cover to boost its uptake
Accidents can happen anytime, anywhere, resulting in injury, disability and, in a worst-case scenario, death.
That could spell financial catastrophe for the victim and their dependants if the breadwinner dies or is incapacitated.
Personal accident insurance is the best way to cushion individuals and families from the economic vagaries of accidental death and injury.
Its unique benefit is, it provides financial backup for the insured in case of temporary or permanent disability. It also caters to hospital bills up to a specific limit and the costs of artificial appliances such as crutches, hearing aid and prosthetics.
Many people are still not covered yet anybody who is likely to be financially impacted by being out of work due to accident-related injuries must possess this policy.
Fortunately, with as little as Sh228, for instance, a student can now purchase an annual personal accident cover, one of the most affordable. And being in the Digital Age, one only requires a smartphone or other internet-enabled computer device to sign up and get a cover in a few minutes, from anywhere.
So, why are people, especially the tech-savvy youth, uninsured? In the challenging economic environment, insurance may be perceived as an expensive luxury. But with the high number of road fatalities and injuries, personal accident insurance is critical. Statistics show 3,000 Kenyans, or one in 15,000, are likely to perish in a road crash every year.
With the ever-present threat of physical injury, the benefits of being insured outweigh the cost, especially considering the likely loss of income due to hospitalisation for prolonged periods. Besides, innovative technologies allow for the personalisation of underwriting products.
Data analytics, for instance, gives insurers a deeper view into the behaviours of their clients, helping them to customise solutions to their financial and insurance needs.
Financial technology firms specialising in providing insurance solutions, insurtech, has lent impetus to the increased adoption of digital channels in underwriting. Insurer and insured enjoy numerous benefits—including improved operational efficiency, faster claims processing, reduced costs and enhanced client experience. Underwriters should deploy insurtech platforms to attract young people, driving generational brand loyalty for insurers. Kenyan youth are a vastly under-served market with unique attitudes to insurance.
A survey in Kenya three years ago revealed that 89 per cent of the youth would opt for health insurance with 56 per cent for motor insurance and 48 per cent education insurance. It was explained that young people highly value their well-being.
Sensitising the youth on personal accident insurance can drive uptake among this highly dynamic group. Mobile-enabled insurtech apps are a plausible way of delivering insurance coverage to underserved markets like the youth. Insurers and intermediaries should focus on selling the financial benefits of personal accident insurance while simplifying products using innovative digital solutions. BY DAILY NATION
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