State-owned National Insurance Company (NIC) has announced a significant increase in premiums, raising them by 43 percent. This boost is attributed to the successful implementation of digital transformation initiatives, which have simplified access to insurance services for customers.
According to the company’s financial statement, the gross written premiums for 2021/22 amounted to Sh124.5 billion, a notable rise from the Sh87.4 billion recorded in the previous year.
Despite a slight decrease in profit before tax by 2.1 percent to Sh63.21 billion, NIC’s managing director, Dr Elirehema Doriye, explained that the decrease was a result of increased investment in digital platforms.
Dr Doriye further highlighted the company’s commitment to enhancing customer experience and improving operational efficiency. The increased investment in digital transformation allowed NIC to shorten the claims payment process and make insurance services more accessible and user-friendly.
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Additionally, the company allocated resources to renovating its investment buildings and offices as part of a broader brand refreshing exercise to enhance its corporate image.
Risk retention also saw a decrease of 29 percent due to an increase in the size of risks that exceeded the corporation’s capacity. Despite this, the company’s total assets grew by 11 percent to Sh423.9 billion, and shareholder’s equity rose by an impressive 32 percent to Sh217.071 billion.
NIC plans to further increase its gross written premiums by around 30 percent this year, focusing on investment in technology to improve turnaround times for underwriting and claim payments, as well as enhancing service provision and customer satisfaction.
