Innovation, Adaptability, & Understanding Emerging Markets Dynamics – Key to Increasing Insurance Penetration in Africa
Patience Mukeli Muvea, Chief Actuary, Liberty Life Kenya
The Africa Insurance Magazine (AIM Publications) editor, Andrew Chinoperekwei, engaged Patience Mukeli Muvea in a profiling exclusive reflecting on the journey to becoming the Chief Actuary at Liberty Life in Kenya, her perspectives on the future of insurance and actuarial insights on increasing insurance penetration in Africa. Reflecting on her professional and career journey, the award winning actuary said;
“As the Chief Actuary at Liberty Life Kenya, I have been a key player in providing leadership in actuarial matters which has been instrumental in navigating the business through a myriad of challenges and opportunities that include; changing economic landscape, evolving consumer needs, technological advancements, competition from non-traditional providers and changing regulatory landscape.”
“The biggest lesson I have learnt is that as an Actuarial Executive I must always solve the customer problem first and therefore this requires a demonstration of leadership beyond numbers. This implies that, my decisions must drive value for the customer, whilst balancing the shareholder value. As such, this presents a delicate balancing act and requires decisiveness and courage in my decision making.”
“My impact in the actuarial profession is centered on customer-centric product innovation, strengthening the actuarial function, shaping and driving the business strategy, inspiring leadership and mentoring the next generation of actuaries,” said Patience.
Patience recently, received the 2024 Bayes Alumni Leadership Award, and she strongly believes that, this recognition cements the transformative role she has played in advancing the actuarial profession;
“This Leadership Award is a recognition of excellence and leadership. Receiving this award is testament to my ability to lead, inspire and drive meaningful impact within the actuarial profession and the broader financial services landscape.
The award is also a nod to the dedication and contributions I have made to the industry, such as advancing thought leadership, shaping strategic initiatives, and mentoring the next generation of actuarial talent,” she said.
Looking ahead, Patience believes that, the future of insurance will be shaped by Artificial Intelligence and Automation, Climate Change and Insurtech Partnerships;
“Artificial Intelligence (AI) and Automation and how insurers will leverage these capabilities for underwriting and claims processes and customer experience.”
“Climate Change and how insurers, reinsurers and regulators will be prepared to deal with future and current ESG risks in domains like pricing, risk coverage, reinsurance coverage and incentivizing green behaviours.”
“Insurtech Partnerships that will give rise to collaboration with traditional insurers in order to stimulate technological capabilities and innovation,” she said.
Speaking to AIM, Patience echoed the urgent need for African insurance players and stakeholders to adopt a multi-faceted approach in increasing insurance penetration. This approach should be centered on 3 key aspects; “innovation, education and market development,” says Patience.
“Product Innovation and Customization will require actuaries to develop affordable and flexible products tailored to the unique needs of African markets, for example, low-cost health, agriculture and life insurance targeting low-income individuals.”
“Leveraging on Technology and Data Analytics Integration to perform accurate risk assessment and pricing. In addition, leverage on automation to distribute and manage products on an affordable basis.”
“Financial Literacy and Awareness to ensure that the masses have a good understanding of the value of insurance. As actuaries, there is need to simplify actuarial concepts, design transparent and customer-friendly insurance solutions and ensure clear underwriting terms and straightforward claims processes.”
In her concluding remarks, the award winning actuary said;
“Despite being one of the world’s fastest growing economies, Africa has relatively low insurance penetration compared to global standards. Africa’s insurance landscape can be transformed to better meet the needs of its growing population, and this presents an immense opportunity. However, insurers will need to position themselves better my ensuring that the solutions they develop address the ‘African’ problem and that they also leverage on technology to manage their distribution economics, operational costs and improve accessibility.
The journey also requires ongoing innovation, adaptability, and a strong focus on understanding the dynamic needs of emerging markets — principles that actuaries are uniquely positioned to champion.”
