PAN AFRICA LIFE UNVEILS NEW LIFE INSURANCE PRODUCTS

Pan Africa Life Insurance, Kenya has unveiled two new innovative products in the market to meet the changing insurance needs of clients.

The Life insurance company has introduced a life insurance policy that pays you while you are still alive.

The new life insurance product, ‘FlexiLife’ is specially designed to pay benefits twice – at retirement and after you pass on. In other words, the policy boosts your retirement savings and also takes care of your loved ones after your demise.

What makes this insurance policy unique is that the policyholder only pays premiums until their preferred retirement age. At that point, they get the first pay-out. They then remain covered for a similar amount for the rest of their life.

In addition, Pan Africa Life has unveiled another unique product in partnership with Umash Funeral Home offering Funeral Pre-plans.

The product comes in two fold: The Umash Silver pre-plan which offers a funeral package worth Kshs.100,000 for only Kshs.1,200 annual premium and the Umash Gold pre-plan which offers a funeral package worth Kshs.200,000 for only Kshs.2,400 per annum.

Clients who prefer a cash pay-out instead of the funeral home services will pay Kshs1,800 and Kshs.2,800 per annum for the Kshs.100,00 and Kshs.200,000 covers respectively.

“With this level of premium, Pan Africa Life has made “‘talking taboo’ a lot easier”, says the CEO Mr. Tom Gitogo referring to the discomfort most Kenyans have when discussing funeral plans.

Pan Africa Life commenced operations in 1947 and was the first insurance group to be quoted on the Nairobi Stock Exchange (NSE) currently commands around 22 percent of the combined Group and Individual Life market.

“Being quoted means the company has to ascribe to high standards of professionalism and governance as you are subject to public scrutiny. As CEO you also have many bosses since every stakeholder is your boss. Your leadership style and strategy is admired or criticized by more people as you are also openly analyzed,” says Gitogo.

A part from the new product that were launched recently the insurance firm is undertaking property investment projects that entails the construction of a housing project in the palatial Runda estate through its subsidiary, Mae properties Limited.

This a mean the insurance company is trying to reduce dependence on the NSE and increase the certainty of performance and growth.

The CEO says that most Insurance firms invest in the capital markets however this proved to be
dangerous during the post election violence and the subsequent global recession. “Being an external platform, there is not much we can do to manage the goings on at the stock market,” he says.

It is with this background that the company is ambitious in developing new products to increase uptake of insurance products in Kenya.

The company too has been working hard to improve its distribution. Mr Gitogo being a staunch supporter of banc assurance is targeting to employ the use of mobile phones which have wider penetration in the country, about 20 million Kenyans are using mobile phones.

“We are looking at innovative and clever ways of distribution. Bancassurance offers greater potential. Most countries that have successful insurance sectors have embraced banc assurance. The banking industry has a wider penetration. Anyone seeking banking services needs insurance services too. The Government needs to legislate bancassurance appropriately as there are many roadblocks currently,” he says.

Additionally, the CEO says improved infrastructure will reduce cost of doing business in the country and attract more investors.