IRA CEO, Hajji Ibrahim Kaddunabbi Lubega advised companies to introduce the system of having permanently place innovation think tanks, whose main duty would be researching into and innovating in new products.
The Insurance Industry in Uganda faces a new reality of the digital industry onslaught, with technology seemingly replacing professions.
Since the digital technology revolution took stage in Uganda at the beginning of the 2000s, with the coming of mobile-phone based transitions, the financial industry has been seeking to stay afloat through innovation.
A long the way, they realized that partnering with telecommunication and digital technology companies, was better for them than competing with or fighting their counterparts.
However, with many functions of professionals being taken over by technology, the Industry is informed that they have to think of new solutions, or their space will continue shrinking.
Michael Niyitegeka, the Head of Refactory, a technology skilling academy, says that currently, the Insurance companies, and in deed many other industries are still operating in isolation, competing with each other, and relying on their legacy to attract and maintain customers.
According to him, this is increasingly becoming irrelevant because today’s consumer is more driven by convenience, which should drive each serous company’s innovation.
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He was speaking at the CEOs monthly meeting hosted by the Insurance Regulatory Authority (IRA) In thinking about customer convenience, Niyitegeka said the insurance companies should start working more closely together so that they act like a platform, instead of competing against each other.
He gave an example of the current global business leaders like Amazon, Google, Meta and others, saying, while they started with a single product, they soon realized the need to converge the needs of the consumers and innovate in that direction. Currently, such companies are involved in many products in services, just like in Uganda telecommunications companies diversified from communication into financial transactions, as well as being platforms for other sectors like health, trade and information.
Niyitegeka assured them that collaboration was therefore vital for their survival.
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He said being a platform or ecosystem industry is what is making the other corporations top the global charts, and have since replaced banking corporations as the leading brands of the world.
Sande Protazio, Director of Planning, Research and Market Development expressed worry that the insurance industry is more at risk that banks which are a stronger industry, yet being out shown by tech based platform companies.
Protazio says the solution lay in investing more in digitization, and also ensure the boards of directors are selected depending on their level and interest in digital technology, which would help push the digital agenda of a company and consequently the whole industry.
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The dialogue was organized under the theme: Tailoring Insurance Solutions to Meet Evolving Customer Needs.
The Chief Executive Officer, IRA, Hajji Ibrahim Kaddunabbi Lubega stressed the need for the industry to continuously study the trends of the world to know how to fit in, and avoid dropping off the pace.
On his side, the industry regulator assured the operators of support in any form, to drive innovation, especially regarding tailoring products to the needs of the market.
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IRA has for the last four years led the industry in focusing in innovation to match with the global trends technology continues to dominated operations, and also introduced Insurance Innovation Awards to encourage development of innovative products.
This was mainly aimed at increasing the uptake of insurance by the Ugandan public and grow the penetration to higher levels than the current less than 1 percent. Hajji Lubega advised the insurance CEOs to make innovation a continuous process and part of their daily innovations, saying that technological enhancement is not a one-day activity, but an ongoing business.
He advised companies to introduce the system of having permanently place innovation think tanks, whose main duty would be researching into and innovating in new products.
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The insurance industry in Uganda has been growing year on
year, at about 12 percent in terms on gross written premium, and last year, a
total of 1.6 trillion shillings was collected by the insurance companies.
