Biashara ya insurance Haina faida,juzi SI jubilee insurance iliuziwa mjerumani
Hata mudavadi alifunga insurance firm yake
If you have a policy already hapo huwezi saidika service it to maturity. But if you have anything short term toa peleka kwengine.
Jubilee Insurance actually made 6 Billion Shillings in profit though they sold their General Insurance Business to Allianz. There is money in insurance, but bot easy money.
If you only look at bottom line you will make losses. There is serious undercutting in this business especially Medical & General Insurance. Brokers underquote and win tenders against insurers then come and sell the policies to the same insurer. If you don’t have a thick spine unaeza jiingisha kwa 1 loss making policy ikuzamishe.
Example is Safaricom has 4,000 employees so they float a medical policy cover. Your actuaries calculate the risk and deduce you need to get 1Billion to break even on this policy. Munaenda bid brokerage X bids 800M and they win the policy. They come and dump it on you at 720M. Your stupid boss gloats ameingiza business ya 720M since nyinyi huona topline. 6 months in the scheme is depleted. You end up spending 1.2B and a loss of 480M on 1 policy. If its 3 bad policies my friend your business goes under in 1 year.
:D:D:D:D:D…can you reread your comment and tell me how you can 1) Make money sustainably if you are selling part of your business
2)You depend on brokers to get you profitable business,broker wants his commission doesn’t care if you make money or not
3)With COVID ,most employers wametoa hizi benefits kama insurance to most staff,gari Mingi ni third party hata za kampuni, insurance business is dying
Comment 3 is a lie. Medical schemes are part of your pay package that was signed by you ukiingia kazi. Employer hawezi itoa without you signing it off. Also coming from someone with insurance knowledge insurances made the most profit during COVID period because people were afraid of the hospital and chose to self diagnose.
Comment 2 also incorrect. Agents are a necessary evil in the industry but we don’t depend on them. Remember an Insurance company’s core business is to offer insurance services and that of Agencies is to sell insurance. An insurance company will gladly give a broker 10% if it means they don’t deal with the business directly. Imagine you have 200,000 people in you system you’d need a call center of over 200ppl to manage and there is where the broker comes in and offers a solution.
Comment 1 shows you only read my comment to reply and NOT understand. Because of undercutting, General Insurance (A branch of Insurance) in KE is a lossmaking entity. That’s why IRA brought regulation to stop the practice. Then there is Life Insurance (extremely profitable) and Medical (profitable if you apply your assessments well). What most companies do is use the other lines of business to support general insurance business. Jubilee sold the General entity to Allianz bcoz Allianz wants presence in the market and they have money, so they splashed 8B on a lossmaking entity that mostly dealt with topline. They also “partnered” with Sanlam, africa’s biggest insurer so the sale was an aggressive move.
Insurance is S#1T
Loool! If you want your business to be taken over by force without compensation, go to the Congo. Ask yourself why despite all its riches, people do not dare invest there unless you are a large company that can drag their government to the global courts???
Try even leasing Land there. A militia will come and demand a “Tax”. To be paid in dollars only. Failure to which they confiscate your produce and kill your workers.
Ever been to Kinshasa?? The city looks like a giant Githurai 45 only with 12 million people.
I agree with you in all the others, but this one is B. 'S. given how the likes of Unilever, J&J, and HSBC have had World wide scandals.
Coca Cola and BAT are also there.
They probably sold Equity for capital gains. Equity si price imerudi chini. Britam is very stable. I would even rank it above Equity which has had one CEO for the longest.