As published by New Vision Uganda on November 11th 2022
Technology disruption in the insurance sector has increased since the COVID-19 outbreak in early 2020, as many players were forced to innovate in order to continue serving their clients.
The increase in disruptions, according to experts, saw a number of non-traditional players raid the market, riding on technology to reach clients, an aspect that traditional players had not appropriately invested in at the time.
But two years later, pan-African insurer Minet has challenged local African insurers to develop impeccable technology expertise, in order to protect their market, and deal with the challenges arising from technology disruptions.
Joseph Onsando, Minet Group’s chief executive officer, said investment in technology would help insurers meet the changing customer expectations and improve their decision-making.
Speaking during celebrations to mark 75 years of Minet on the continent and 5 years of its rebirth in Uganda, Onsando said digital adaptability is now a priority to the company, seeing that the world is fast-changing.
“The other thing we ought to deal with is margin contraction because customer priorities keep on changing. We must, therefore, invest in understanding these changing priorities so that we position ourselves properly”, he said.
In Uganda, the celebrations to mark the fifth anniversary were held at the Kampala head office, with the team leader, Edward Nambafu, reiterating the call for investment in technology innovations.
He appreciated his staff for a job well done, but also tasked them with protecting the reputational and operational integrity of the firm.
Nambafu said the surge in cyber-attacks during the pandemic lockdowns posed a challenge for businesses regarding securing their activities in remote working environments.
He added that insurance plays an important role in the economy by providing a buffer should risks such as poor health, theft, fire, or damage occur.
Established in 1947 as JH Minet, the Minet Group has grown to become Africa’s trusted risk advisor and Aon’s largest global network correspondent. This grands Minet access to over 50’000 network partners in 120 countries, enabling collaboration, knowledge sharing and offering greater business opportunities for its clients.
According to the Insurance Regulatory Authority of Uganda (IRA), the sector has maintained resilient growth despite a multitude of disruptions stemming from the COVID-19 pandemic and the geopolitical tensions in Europe.
The industry managed to hit the shi trillion mark in gross underwritten premiums last year, which IRA chief executive officer Ibrahim Kaddunabbi Lubega said was a sign of good performance and resilience in the midst of disruptions.
He, however, called on insurance companies to invest in products that are facilitated by technology to speak to the needs of the insuring public as they respond to the existing challenges.
“Without using innovation, we cannot survive this wind. Therefore, the only way to go is to embrace technology so as to serve our client better”, Kaddunabbi said.