1. Beyond Business As Usual
Insurance Regulatory Authority
Breakfast meeting / Kampala Serena Hotel / 23rd Feb 2017
Rethinking Insurance
Beyond Business As Usual
Mustapha B Mugisa, CFE, MBA
Forensic. Advisory. Fraud.

2. What are the top most pressing issues for the insurance sector?#1
Insurance: protection against a possible eventuality

3. Grow Gross Written Premiums
Issue 1: Revenue
Grow Gross Written Premiums
Forensic. Advisory. Fraud

4. 1.1 Current insurance sales model
Brokers
Agents
For the last 50 years, insurance has been here. Why is penetration still less than 1%???
Challenge:
Confusion to the client
Underpricing
Red ocean
High cost of doing business
Direct sales
Forensic. Advisory. Fraud

5. 1.2 Rethinking insurance sales
Agents
Brokers – clear structure & minimum targets
Agents
Clear communication across board at industry level.
New brokers are licensed based on fresh expertise in specific sectors / geography
Minimum targets set for each per year to optimize ‘allocated sector’ and then can roll over to other i.e. 40% revenue must come from primary sector and rest
Brokers
Direct sales focus on retention, direct enquiries and operations
Forensic. Advisory. Fraud

6. 1.2 Rethinking insurance sales
Sectors
Transport & logistics
Construction
Manufacturing
SMEs
Banc assurance
Others (Schools, Saccos, Oil, NGOs etc)
Broker 1 √
Broker 2
Broker 3, etc
Agent 1
Agent 2
Each broker has a primary sector, they must generate minimum 40% of total GWPs
Regulator reserves right to open sector to another, if targets not attained
Pressure for players to deliver in a healthy manner
Create expertise at broker / agency level to depeen penetration
Brokers must generate minimum of 40% from the primary sector, and the rest from “Other” sectors. And the BDM must be a sector champion / champions with a lot of insights in that sector. This is to enable deep market coverage and penetration. Keep changing sector…

7. Issue 2: Claims
Item
Ugx’m %
Insurance premium revenue 90
75.0%
Insurance premium ceded to reinsurers
(10)
0.84%
Net insurance premium revenue 80
0.66%
Fees income (investment, gains, etc) 40
33.0%
Net income
120
100%
Insurance benefits paid + claims (fraud investign costs)
(52.8)
44%
Expenses of acquisition (broker & agency fees /commissions)
(24)
20%
Operations costs (etc… goes up to 40%???)
Etc
(40%)
Forensic. Advisory. Fraud

8. 2.1 Fixing claims: Big data
Pattern based,
Predictive
Analysis
Gov’t Data
Public Source Data
Private Sector Data
Industry Data Warehouse
Reports.
Images
Alerts
Files
Linkages
Photos
Input
Output
Data aggregation and cleaning.
New policy applicant profile

9. 2.1 Fixing claims: Big data..
Source
Mapping
Social Media
Analysis
Personal
Crawler
For customer sensor, we put Agent in the vehicle, computers, etc to manage risks
Virtual HUMINT
Customer
Sensors
Crawler

10. Issue 3: Value Chain Brokers/ Agents
Operational excellency, customer engagement & risk reduction

11. What changes in competencies are needed?#2
Insurance: protection against a possible eventuality

12. 2.1 Changes in Competencies
Embrace big data – for predictive risk profiling
Anonymous whistleblowing to manage risks of fraud
Beyond persistence – offer enterprise risk solutions to clients
Clear communication across board at industry level.
New brokers are licensed based on fresh expertise in specific sectors / geography
Minimum targets set for each per year to optimize ‘allocated sector’ and then can roll over to other i.e. 50% revenue must come from primary sector and rest
Forensic. Advisory. Fraud

13. 2.2. Proactive Risk Mgt
Forensic. Advisory. Fraud

14. 2.2. Proactive claims mgt
Forensic. Advisory. Fraud

15. Focus on efficiency
“People want simple insurance products. They just want a payment. E.g. In Pakistan, when a person makes a claim before 11:00am. The person has money before 3pm.”

16. Our values for your success!
We take pride in doing the right thing, rather than what is right for the profitability of SCL.
Thank you!
Summit Consulting