'More farmers adopt insurance through digital innovations'

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As Insurance companies seek for ways on how to reach out to farmers without incurring a lot of expenses, farmers are embracing digital innovations to pay their premium without interfacing with the insurer.

Insurance Training College (ITC) chief executive officer, Saul Sseremba, said they introduced a platform called InsureYo, which allows insurers to list their products online, enabling clients to access them without face-to-face interaction.

Sseremba said some of the products available on the platform include agricultural products, where a farmer can purchase their premium through agents without direct interaction with insurers.

“This innovation helps insurers cut down on expenses while ensuring farmers get insured without travelling to insurance offices,” Sseremba made these remarks on Monday (October 21, 2024) while announcing the 5th Annual International ITC Conference, scheduled to begin on Wednesday in Fort Portal city.

Sseremba emphasized that digitalisation offers the dual benefit of lowering operational costs and providing convenience to customers.

“Imagine receiving your policy document from the comfort of your living room, it's not only convenient for the customer but also economical for us,” he noted.

One of the major challenges in the insurance sector, according to Sseremba, is managing costs and expenses while providing services in a way that is accessible to clients.

“There has been ongoing discussion about micro-insurance how do we reach people who buy low-cost insurance, such as premiums worth sh1,000 or 2,000. Sending agents to collect such small premiums often doesn't make economic sense,” he explained.

Sseremba added that embracing technology and digital solutions is essential for scaling micro-insurance services without incurring high operational costs.

“Digitalisation is key to the success of micro-insurance because it eliminates the need for unnecessary expenses.”

The theme for this year’s conference is “The Digital Agenda: What Next for the Insurance Industry?”

David Tumuhaise, Resident Underwriter at the African Reinsurance Corporation (Africa Re), highlighted that technology eliminates the need to open physical outlets in every village. "With innovations, we can reach everyone, anywhere, in real-time," he said.

Tumuhaise also noted that while COVID-19 caused significant disruptions, it taught businesses the importance of doing things differently and leveraging technology.

At least over 200 delegates including international and regional experts, industry practitioners, government representatives and academia are expected to attend. The conference aims to foster collaboration, innovation and networking opportunities among others.