a) Kigo Insurance Company of Arusha (TZ) has in the recent past lost a considerable size of its…
a) Kigo Insurance Company of Arusha (TZ) has in the recent past lost a considerable size of its market niche owing to stiff competition from foreign insurers mainly from Kenya and South Africa. In response the company has contracted a consultant to diagnose the problems in the company. High in the insurer’s list of deficiencies are:
(a) Poor service quality
(b) Unpaid claims
(c) Uncompetitive premiums
(d) Poor relations with intermediaries, particularly medium-sized brokers
(e) Lack of innovativeness of product lines
(i.)For each of these shortcomings, suggest appropriate remedies the company may employ to address further market share losses. [15 Marks]
b) In both general and life assurances, premium computation seems to be more rigid following certain criteria, which perhaps make the process less accommodating of individual insured’s situation. In view of the above, discuss how a life office should handle a sub-standard life. [5 Marks]
