First Assurance: Powering General and Health Insurance Solutions

• First Assurance: Powering General and Health Insurance Solutions in Kenya;

 First Assurance has been a formidable force in the Kenyan insurance market for almost a century, providing a diverse range of short-term insurance solutions. It offers products that cater to both corporate and individual clients such as medical insurance, fire and engineering, motor and liability insurance, home insurance, professional indemnity, marine insurance and golf insurance, among others. These products are designed to provide peace of mind to their clients.

The company is known for its unwavering commitment to safeguarding individuals and businesses. They deliver a diverse range of insurance products that are meticulously designed to meet the evolving needs of their clients.

With risks continually evolving, First Assurance constantly remains at the forefront, dedicated to providing suitable protection to their customers. To gain a deeper understanding of the firm’s impact within the market, Business Quest sat down with the managing director, Stephen Lokonyo, who shed light on the company’s impressive milestones.

 The company started its operations as Prudential Assurance Company PLC and rebranded to First Assurance in 1990. “We are part of  Absa Group, and in terms of market share, we consider ourselves as a mid-size company that caters to a special niche of very discerning customers.  We aspire to grow to the top ten within the next three years. ,” Lokonyo says.

Notably, business growth has been remarkable in the general insurance market and this is reflected in our own growth over the last three years.

Product offering

First Assurance boasts a diverse product portfolio, offering a wide range of short-term insurance solutions across the board. This includes coverage for both retail and commercial clients, with specialised non-medical and medical insurance products.

The company tailors its offerings to each market segment, taking pride in its extensive selection. Customer satisfaction is a key focus, with an emphasis on prompt claims settlement.

Stephen Lokonyo, the managing director notes that claim settlement service is a fundamental promise that the company always strives to deliver.

Achievements

First Assurance’s achievements are bolstered by the acquisition of a majority stake by Absa Group in 2015,  a major financial institution in the Kenyan market. This move provided the company with significant backing and resources.

Maintaining its focus on impeccable service, the company has achieved impressive growth over the past three years, exceeding the six-billion-shilling mark in 2023.

“This milestone has solidified our position as a leading player in the Kenyan insurance market,” Lokonyo indicates.

First Assurance secured seven awards at the 2023 Think Business Awards. Notably, these included recognition as the best provider of group medical insurance and a top performer in customer service. The customer service award was particularly significant, as it signifies a strong vote of confidence from both clients and partners.

Aligning to healthcare

First Assurance has embraced the Social Health Insurance Fund, a government initiative which seeks to provide universal health coverage to all Kenyans. The company acknowledges the private sector’s limitations in reaching all demographics and the ongoing challenge of ensuring access to quality healthcare.

However, the company is making a clarion call to private insurers to complement the Social Health Insurance Fund by providing services beyond the scope of the government’s scheme.

The company also foresees continued demand for tailored insurance solutions catering to specific market segments.

Driving growth

A commitment to developing customer-centric products and streamlining claims processing are key factors driving growth for the company.

“Continuously developing products that meet the needs of our customers is a top priority,” Lokonyo says. The MD reiterates that the company has also fostered strong partnerships with brokers and agents, ensuring their products are widely available across the country through its branch network and partners.

Beyond simplified products, the company has invested in streamlining client onboarding and claims processes with a focus on providing seamless user experience to its customers.  The company also has a 24-hour call centre to ensure that it always remains accessible to its customers.

However, the firm acknowledges the challenge of fraud: “Fraudulent claims can eat up 20-30% of payouts, and it’s constantly evolving,” he explains. To combat this, First Assurance has invested in sophisticated fraud detection tools and employee training to identify both fraudulent and exaggerated claims.

A focus on SMEs

First Assurance recognises the critical role Small and Medium Enterprises (SMEs) play in the Kenyan economy. That’s why they’re dedicated to providing versatile and responsive insurance products specifically designed for this dynamic market segment.

Lokonyo emphasises the importance of understanding SME needs: “SMEs require flexible solutions that cater to their unique financial situations and operational needs,” he says. First Assurance addresses this by offering “tailor-made” products that can be easily financed using insurance premium financing options. This ensures SMEs get the coverage they need without disrupting their cash flow.

First Assurance breaks away from traditional product development methods, as Lokonyo explains: “We’ve moved away from desktop product development. Today, we prioritise real-world feedback from existing customers and partners.” This data-driven approach ensures products address actual market needs, exemplified by the recently launched “First Afya Biashara” product.

Flexible limits and customizable options allow SMEs to exclude coverage that is not required ultimately reducing costs and making the product highly cost-effective.

Emerging from the pandemic, the insurance firm reconnected with customers and the public through the “First Things First Campaign.” This campaign aims to educate the public about available products and services, emphasising the value of insurance in supporting business continuity.

First Assurance also recognises the unique needs of the growing youth population. They’re committed to developing future-proof products that cater to this demographic. Furthermore, they prioritise continuous education initiatives for existing customers, partners, and the public. This ensures informed decision-making when insurance needs arise.

“First Assurance acknowledges the dynamic nature of the financial sector and the crucial role of the Insurance Regulatory Authority (IRA) in maintaining a healthy regulatory environment. We commend  IRA’s efforts to keep pace with industry advancements and appreciate the support provided during the transition to IFRS 17 reporting standards,”

As part of giving back to society, the company is committed to social responsibility through various initiatives, including supporting children’s homes, contributing to their local community and sponsoring students’ education needs. They remain dedicated to identifying and addressing new social challenges.

Meet the Boss;

With nearly three decades of experience in the insurance industry and three years at the helm of the firm, Mr. Stephen Lokonyo takes great pride in his career journey. For Lokonyo, the core values of the insurance business resonate deeply with his personal principles, which revolve around family and integrity.

“We provide protection to businesses and families that they would not be able to recover from if it wasn’t for insurance”, he says. “I’m really happy about the profession that I chose. I believe we make a significant impact on society through our  products.”

Ethical conduct holds utmost importance for Lokonyo, both in and out of the workplace. Beyond his professional endeavours, he cherishes time with his family and strives to maintain a healthy work-life balance, often enjoying a round of golf, during his free time.

Moreover, golf has served as a catalyst for personal growth, teaching Lokonyo valuable lessons in patience, resilience, and tackling life’s challenges. He notes that a single round of golf mirrors life’s trials, offering insights into one’s character and fortitude.

Beyond personal development, golf presents networking opportunities, providing an uninterrupted four to five hours for players to forge meaningful connections and explore potential collaborations.

In essence, Lokonyo’s commitment to excellence extends beyond the boardroom, embodying a holistic approach to leadership that embraces integrity, personal growth, and meaningful connections.