HUSTLE MAG MARCH 2020 FINAL

opinion
REINSURANCE
Propelling reinsurance to
new heights
By Kenya Re
MD, Mr. Jadiah
Mwarania
Local reinsurers
have
implemented
strategies
that
have seen
them expand
and
tap into
more of the
Eastern Africa
region
The Reinsurance industry has made tremendous
strides over the years. Coming
from a virtually non-understandable
industry to a pivotal and important part
of the insurance industry across the world
today. Reinsurance over the years has allowed
more insurers to take on more policyholders by
protecting them against insolvency, it has helped insurers
stabilize against financial losses and helped
decreasing overall risk.
However in the reinsurance world, growth as a
reinsurance company is key to ensure maximum
protection for insurance companies. Expansion
to different markets and tapping into different
segments is instrumental in unlocking the potential
and overall business. To give more of a local
context local Kenya Re has diversified its operations
to different countries such as Zambia and Côte
d’Ivoire just to mention a few in a bid to unlock the
francophone sub-Saharan Africa Market. Growth
into products such as Islamic insurance has put the
corporation on the international map after the Corporations
Re-takaful window being selected twice
as the best in Africa.
Solid and well developed strategies do not only
set a solid foundation for reinsurance business
but also help the reinsurer outline a solid route
map that will guide their practice. Local reinsurers
have implemented strategies that have seen them
expand and tap into more of the Eastern Africa
region. Strong strategies ensure profitability, stable
growth while moving on a guided and targeted
path. Technology remains key in this industry
as adoption and implementation of systems that
insure global and international practice and has
helped to ease processes while ensuring accuracy
in reporting while increasing automation in more
areas that have led to both efficiency and improved
accuracy. Additionally, block chain technology
assists in eradication of fraud which often happens
during fraud claims, this enhanced operating system
is an automated process that is a cryptographically
secured form of record-keeping, which makes
verification of data easier. According to surveys
recently released by McKinsey, automation can
reduce the cost of fraudulent claims by as much as
30 percent.
In order to keep a afloat within the reinsurance
industry an organization must remain a head of its
competition to ensure that they provide robust and
impactful products to the insurance companies, a
need for product customization may arise due to
the ever changing insurance needs of consumers
hence more insures creating tailor-made packages
to suit their client’s needs. Technology implementation
and innovation must stay in the heart of reinsures
not only to easy and automate processes but
to keep up with the ever changing trends. As the
Corporation is set to celebrate its 50 years in business
this year, deliberate and continuous efforts
continue to be put in place to ensure transparency,
ethics and professionalism while ensuring overall
success, profitability of the business and overall
growth of the reinsurance and insurance industry
as a whole.
HUSTLE EAST AFRICA
13