NAIROBI, Kenya, Nov 16 – The recent requirement by the Insurance Regulatory Authority (IRA) for health insurance providers to use actuaries in the pricing of insurance products has been welcomed by UAP Insurance.
Managing Director James Wambugu said most medical practitioners have been reporting losses in the base line since their prices are not set by professionals.
However, Wambugu said UAP has seen differences in their claims experience since the introduction of actuaries.
“We already do have an actuary on board, so it is not a big issue. As soon as we got this actuary, we’ve seen the difference it has done to our medical business. Performance has turned around, if it does help the entire industry in improving the claims experience and help improve business, it is welcomed,” he affirmed.
Speaking to Capital Business, he also added that the economy is missing out on risk managers and that is where the actuaries are involved to help with risk management in the company.
Wambugu further added that technology has enabled them to penetrate markets that were previously untouched such as farmers.
“Penetration currently stands at three percent of our Gross Domestic Product (GDP) and there is no reason why we cannot grow it further in the country. There is a large potential particularly in life insurance where penetration stands at one percent. Investing in the technological platform will help increase penetration,” Wambugu said.
He added that the company is looking at breaching the mobile platform with most of its products after seeing the impact Salama Sure (a mobile platform insurance product) had on consumers.
UAP paid its first Salama Sure claim last week turning a new page in insurance underwriting. The successful settlement of the claim showed how technology can be used to demystify insurance and make it accessible.
Twenty one thousand customers have signed up for Salama Sure since its launch in October.
The company says it has already started putting in strategic plans in place to further entrench itself in the health care industry such as trying to simplify insurance for the masses and customer awareness.