Perception of Youth on Insurance Sector in Kenya: Wowzi Insights

The Youth Viewpoint with Regard to the Insurance Sector in Kenya

According to the last conducted census in Kenya, the youth formed the largest percentage of the population at 75 percent, approximately 35.1million youths. It gives food for thought for brands, agencies, and companies alike to leverage the abundant human resource with such a youthful population.

Wowzi a fortnight ago surveyed the youth’s perception of the insurance sector and highlighted several key aspects.

Now, in this article, we’re going to bring into perspective some of the youth perceptions that came out from the survey and why the insurance companies should start thinking around them.

In Kenya, taking up an insurance policy is gradually growing, and millennials consider it an option.

But, how well do the youth assess their general insurance knowledge?

According to Wowzi Insights Survey Report, 63 percent of the youth averagely have general insurance knowledge, 22 percent having a high general knowledge with 4 percent shallow insurance knowledge levels.

While the survey noted that most youth would go for health insurance (89 percent), meaning that most of them value their well-being with motor insurance ranking second (56 percent). Education insurance would probably resonate well with the youth settled at third (48 percent), with travel insurance rankings bottom (15 percent).

If you’re an insurance company, you’d probably be asking yourself whether you’re doing enough to attract more youth into taking up an insurance policy. The research revealed that 41 percent were equally satisfied and dissatisfied with the insurance companies’ efforts to attract the youth to take up insurance policies.

A reasonable number of the youth (18 percent) are very unhappy with the insurance companies’ efforts to attract them to take up insurance policies.

Even though the youth are dissatisfied with the insurance’s effort, the exciting thing is that 60 percent currently have active insurance policies while 40 percent not actively into having insurance policy.

This gives the insurance companies food for thought on how they can get on board the forty percent; however, the subsequent analysis will shed some light on why the youth are not interested in taking up insurance policies.

Why are the youths not interested in buying an insurance policy?

Based on past market surveys authorized by the Association of Kenya Insurers (AKI), limited insurance products, lack of information, and high premiums featured predominantly. As a result, insurance companies’ call to action would be introducing more market affordable premiums for products that attract the youth.

According to the survey, 65 percent felt that insurance policies are expensive, with 35 percent have no good understanding of insurance policy, while 20 percent did not trust insurance companies.

From the report, 24 percent claimed that having heard their colleague/other people talk negatively about insurance companies made them disinterested. The survey noted that 12 percent felt that insurance policies did not meet their needs.

Consequently, the Wowzi Insight survey revealed that most youths who have taken up insurance policies were persuaded by insurance officials (37 percent), with 30 percent equally persuaded by their friends or an insurance company’s advertisement.

Barely, 19 percent of the youths alluded to the fact that their colleagues persuaded them to purchase an insurance policy.

How can Insurance Companies enhance awareness amongst the Youth?

Insurance companies are spending a considerable amount of their budget to create awareness concerning various insurance policies. Now, employing the right method to enhance understanding of the policies may be something insurance companies are pondering about.

From the survey making insurance mandatory to the youth ranked top to improve awareness amongst the youth. Additionally, offering incentives to policyholders to create awareness ranked second with print and digital media advertisements ranking third.

Roadshows, conferences & seminars ranked fourth. The use of the internet to enhance awareness was the least ranked, settling at fifth.

According to the survey, 85 percent of the respondents had university as their highest education level, 8 percent at tertiary, with 7 percent having high school as their highest education level completed.

From the data analysis, 74 percent of the respondents were male, and 26 percent were female. Regarding employment levels, 37 percent of the youth were equally employed and unemployed; 22 percent were students, with 4 percent belonging to other forms of occupation.

Conclusion

Inasmuch as the insurance companies are putting their foot forward to develop attractive products to attract the current generation of youth, much needs to be done to bring them on board.

Every viewpoint raised by the youth is valid, and this allows the insurance companies to critically look into them as they leverage on the growing youth population. The moment they do, this will significantly impact the ROI on the entire insurance sector fraternity.