Earlier today, we engaged with FITSPA in a dialogue to understand what Fintechs do and the risks they face to devise corresponding solutions for them. This took place at Protea Hotel in Kololo.
Some of our representatives at the engagement included; UIA CEO - Mr. Jonan Kisakye, UIA Vice Chairperson - Mr. Paul Muwanga, Board Executive Committee Member - Mr. Ashok Mishra, CEO of CIC Africa Life Assurance - Mr. Tom Omiti, Managers from ICEA Lion, UAP, Liberty Uganda, SWICO, Africa Re and many more.
While speaking at this engagement, Jonan noted that while the Fintechs submitted their challenges, the insurers were not given a chance to address them and therefore requested for an opportunity for the insurers to address these challenges with solutions later on.
Jonan pointed out some of the challenges & risks that the Fintechs face: risks of money loss, data-related risks, staff-related risks, partnership risks and risks on compliance & systems among others. He however wondered whether the Fintechs have actually failed to access these insurance services and if there have been real scenarios where an Insurer declined to respond to a Fintech’s need for an insurance solution. He therefore requested them to be more deliberate & direct so that the insurers can craft solutions for them. He affirmed his strong belief that insurers indeed have solutions for the Fintechs.
“I worry about the fact that, as insurers, we have not been able to fully demonstrate what we are doing how we are using technology to penetrate the market. But as UIA, some of the solutions we have been able to craft include the Motor Third Party Insurance Payment Platform where any member of the public can access Motor Third Party Insurance conveniently.” Jonan said.
Jonan urged Fintechs to seize opportunities by collaborating with insurers to sell insurance. He noted that we are currently engaging with the Agent Banking Company to be able to sell Motor Third Party Insurance (MTP). He reported that every year, up to one million Motor Third Party Insurance stickers are sold through aggregators like the Telecoms and Payway and that we are now doing the same for Marine Cargo Insurance. He also noted that we are tapping into the use of data & analytics to enhance and better our services.
On payments, Jonan acknowledged that there are payment solutions enabled by the different Fintechs and that after successfully enrolling the uptake of MTP onto the Agent Banking platform, we will be able to extend to them not only the collection of premium, but also the actual sale of insurance.
He admitted that Insurance is predominantly based in the urban centers, but we want to access over 20,000 agents in both urban & rural centers and that we are pursuing various solutions to improve insurance penetration. He said that we will give an opportunity to insurers to tap into this growth and craft the much-needed solutions. He also acknowledged that, at times, insurers tend to be risk-averse despite being risk managers.
Jonan however reiterated the insurers’ ability to craft solutions even when we are faced with challenges. He pointed out our successful underwriting of Oil & Gas Insurance despite the shortage of capacity, by coming together to form a co-insurance arrangement. “Where there is need, we will come together & engage as the UIA so that we can spread this risk amongst all the members.” he added.
In the wake of their calls for automation, Jonan challenged the Fintechs to support insurers in a unique way that still supports a conducive customer experience. This is because as much as the Fintechs are interested in simplification, insurance is a complex product with a process flow that requires customer interaction.
The Vice Chairperson of UIA - Mr. Paul Muwanga seconded Jonan’s submissions and noted his appreciation for this engagement largely because he believes in the law of large numbers. He also highlighted the informal sector which tends to work in unison, giving an example of how boda boda cyclists work together and that they ought to always be reminded of what they need.
“When somebody is claiming, we may not have the entire history, but there are three basic facts; one – that he is insured with us, two – that he suffered a loss, and three – that loss is about something that we insured. Without documentation, we can’t know what happened.” Mr. Muwanga said. He concluded by emphasizing the importance of integrity, adding that it is really crucial for moving forward.
After more submissions by our members, the engagement was successfully concluded with UIA & FITSPA signing a Memorandum of Understanding to formalize the collaboration between the two bodies.