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COVER STORY
KUSCCO MUTUAL ASSURANCE HEDGES
ON PRODUCT DIFFERENTIATION
KUSCCO Mutual Assurance (International Business Machines) study insurer is embracing innovation to be
C.E.O Mr. Anthony Ogutu observed that insurance companies unique and outstanding in the market.
must offer something new to a customer “We shall continue to reinvent our
making his remarks during base that has become spoilt for choice in company by adopting emerging
the launch in May. a crowded market. technologies and introducing new
processes, products and solutions. For
By Ngumbo Njoroge “Whether by price, product, focus or example, make use of social media and
spread, delivery, availability, flexibility, mobile apps as a growing number of
KUSCCO Mutual Assurance limited service or quality, the insurer must buyers would prefer to find and work
is hedging on flexibility and deliver a number of services: visibly with us through their phones.”
product differentiation to claim provide value for money, be the client’s He added that provision of responsive
a significant share of the insurance friend.” customer service is a focus of the new
business representing 2.43 percent of company.
Gross Domestic Product (GDP). This, Mr Ogutu notes, is one of the “All customers have an expectation of
company’s key growth strategy. great service and will not put up with
According to Mr. Anthony Ogutu, poor response from representatives.
KUSCCO Mutual’s Chief Executive KUSCCO Mutual is licensed to transact Around 75 percent of customers state
Officer, research was critical in informing long term & life insurance business, that they consider customer service a
the choice of products for the insurance offering life and group insurance true test of a company’s competence.”
company in its first year. products (see next page) To deliver the business objectives of the
organization, Ogutu said the company
“We have conducted research and He added that the company is also has lined up professionally qualified
tailored our products to suit customer leveraging on cross-selling of existing staff with good track records in the
needs and also cater for different socio- and new products to existing and insurance industry.
economic classes,” he said. new clients, maintaining liaison with “The key staff who hold senior positions
all relevant business units in the as line managers have been vetted and
This, Mr. Ogutu says, differentiates organization. approved by the regulator (Insurance
KUSCCO Mutual’s products from those Regulatory Authority) and are fit to hold
offered by other insurance companies, “Cross-selling to our existing customers their various positions of appointments,”
adding that this approach was preferable gives us an advantage in a competitive he said, adding that training and
to duplicating products already in industry. This will enhance our portfolio equipping of staff will be undertaken
existence. in specific line of business within a few continuously to ensure service delivery
years,” Mr Ogutu said. meets the expectations of stakeholders.
“The research took into account the KUSCCO Mutual targets to be among
entire insurance industry in Kenya, KUSCCO Mutual Assurance is riding the top five insurance companies that
examining the products on offer, taking on its affiliation to KUSCCO Ltd which transact life insurance business within
into account product differentiation,” he is a strong brand in the Co-operative three years. “My aim is to position the
said, adding this gives value to KUSCCO movement, capitalizing on the linkage in organization strategically to acquire a
Mutual’s products. business development and growth. significant market share of the business
that will propel it to those levels,” the
The Principal Officer said the insurer To make the company competitive, Chief Executive said.
also took into account product pricing, Ogutu says the competitive strategy also
offering affordable products for all. focuses on product features, number KUSCCO Mutual Assurance staff
of sellers, speed and turn-around time,
“There is a certain class of people that barriers to entry, information availability 5| SACCO Star Magazine
have not been able to afford certain and location.
insurance products. This informed the
need to make our products affordable to The Principal Officer also noted that the
high-and low-income earners.”
In order to stand out, an IBM
