Challenges facing the insurance industry in Kenya
The insurance sector falls under financial service providers seeing that it deals with dealing with future possibilities that may involve money. If interested in being a player within this industry, it would be best to research what customers look for and tips on increasing the chances of being the most sought-after insurance provider.
It’s also essential that you understand the potential challenges that may come your way to determine how to overcome them. Otherwise, it will be impossible to make it to the competitions’ top. Below are some challenges facing Kenya’s insurance industry:
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Data privacy
Storing customer data is one way to ensure a productive relationship between a company and its clients. Whether a service or product provider operates within the insurance industry or not, they must invest in handling data to ensure the customers’ right to data privacy does not get violated.
Implementing strategies to avoid data being accessed by unauthorized persons requires a massive capital investment, which may be impossible for some insurance companies. Failure to do this may result in challenges with the law, which isn’t good for business.
Read Also CIC Insurance Medical Cover Plans, Life products, and Contacts
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Competition
Players in the insurance industry are faced with the challenge of ensuring the competition doesn’t throw them out of business. A newbie insurance company can overtake established companies, especially if they come with cheap products. If a company owner doesn’t invest in ensuring that current and potential customers find no reason to choose other providers, they’ll not dominate the market.
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Adapting to technological advancements
Technology is ever-changing, and insurance companies must develop strategies to make it easy for them to adopt new advancements. These changes are unexpected and very expensive, making it difficult for most companies to adopt them. It becomes challenging to perform excellently compared to those insurance providers who have already invested in new technology.
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Dealing with customers with different characteristics
Individuals who seek insurance products vary in age, meaning that their income levels are different. Requiring a student to pay the same premiums as someone who’s enjoying their retirement is a recipe for company failure because this student will choose a cheaper insurance company. Failure to consider the features that differentiate one’s customers may result in challenges when attracting customers who fall under a particular category.
Researching extensively and investing in avoiding mistakes made by other company owners will make it possible for you to perform outstandingly. Avoid diving into any industry without understanding how to be the best.
