Insurance Awareness Survey Research Report March 2017
Background Several past studies show that insurance awareness levels are low To remedy this AKI 2016-2020 Strategy aims to grow insurance awareness by 30% The problem however, is that the current awareness level has not been established In view of this, AKI commissioned SBO Research to undertake an awareness survey at household level, among persons aged 18 and above as part of its national Omnibus Survey 2
Objectives & Approach The key objective of the study was to determine the general public s awareness and understanding of insurance, measuring the awareness, knowledge and sources of new information on all products/ services and source of information on insurance. The specific objectives of the study were to: Know the level of awareness of insurance among the Kenyan adult population Know the insurance awareness levels of different demographics i.e. age, educational level; regions; income levels; marital status; urban/rural etc. Evaluate the knowledge level. I.e. what is insurance? Propose strategies to increase awareness levels The study targeted Kenyan residents and potential consumers of various insurance products and services Primary research was used to collect data using quantitative method. The survey targeted 4500 respondents aged 18 years and above spread in all the counties 3
Respondents profile 4
Respondents profile Rural 30% Urban and rural residents was split in the ration of 70:30 respectively. (urban-rural population split in Kenya is Appx 26:74, BUT research shows that perceptions and usage are mostly swayed by the urban population Urban 70% Base = 4335 Employment status Regional split of respondents 7% 15% 15% 7% 20% 35% Self-employed Student Employed by the public sector Employed by a business Did not indicate Housewife The survey was conducted in all 47 counties 5
Respondents profile 59% 41% 45% 24% 23% 7% 2% Male and female respondents aged 18 years and above participated in this survey. Male Female 18-24 25-34 35-44 45-54 55+ Gender Age KCSE/ Form 4 30% College Certificate Diploma Bachelor s Degree 19% 19% 24% Highest level of education Majority of the respondents had attained some level of formal education Master s Degree 1% Other 7% 32% 48% 17% 3% AB: high income earners C1C2: middle income earners D low income earners D C2 C1 AB 6
Findings _ Awareness levels Have you ever heard of insurance? 56% 53% 44% 47% 39% 61% Level of insurance awareness stands at 44%. Urban residents have higher awareness levels compared to their rural counterparts. Overall Urban Rural Yes No Have you ever heard of insurance? (% that said yes) 46% 42% 45% 44% 46% 44% 42% Awareness of insurance does not differ among respondents of different age sets. A higher proportion of males compared to females claimed to be aware of insurance. People in formal employment have wider exposure to the insurance concept. This could be due to the fact that insurance agents tend to focus on selling insurance to the people in formal employment Male Female 18-24 25-34 35-44 45-54 55+ Have you ever heard of insurance? (% that said yes) Employed by a business 55% Employed by the public sector 46% Self-employed 46% Student 43% Own a business/company 39% Housewife 33% Insurance in Kenya 3%, SA 13% and Nigeria o.3% Pc Y KENYA-1,370 Sa- 5,700 Nigeria -2,540 7
Level of understanding of insurance Level of understanding of insurance is quite low with majority of the respondents having little or complete lack of understanding about insurance. Persons with a better education exhibit a better understanding of insurance. Majority of the respondent s associate insurance with protection against future occurrences What is your level of insurance knowledge? What is your level of insurance knowledge? 64% 63% 64% 25% 27% 24% 11% 10% 12% Overall Rural Urban A lot of knowledge Moderate knowledge Little or no knowledge 50% 61% 53% 66% 71% 29% 26% 31% 26% 21% 21% 13% 16% 9% 8% Master s Degree Bachelor s Degree Diploma College Certificate KCSE/ Form 4 A lot of knowledge Moderate knowledge Little or no knowledge What is your level of insurance knowledge? 67% 64% 60% 61% 50% 63% 64% 23% 24% 24% 27% 28% 25% 25% 27% 9% 12% 13% 10% 11% 11% 18-24 25-34 35-44 45-54 55+ Male Female A lot of knowledge Moderate knowledge Little or no knowledge Protection against occurrence of future events What does insurance mean to you? Overall Rural Urban Male Female 18-24 25-34 35-44 45-54 55 + 90% 93% 89% 88% 92% 90% 90% 88% 91% 100% A saving plan company 6% 3% 7% 6% 5% 5% 4% 9% 5% Insurance policies 3% 3% 3% 4% 2% 2% 5% 2% 4% NHIF 1% 1% 1% 1% 1% 2% Agreement between insurer and insured 1% 1% 1% 8
Awareness sources of insurance TV advertisement 37% Radio Word of Mouth from a friend/relative Agent/broker Newspaper/Magazines 25% 16% How did you first hear about insurance? 10% 9% TV and Radio emerged as the key awareness source for information on insurance. Word of mouth also emerged as an important source of information especially from friends, relatives and colleagues Internet - Online/Social media 4% TV Radio My friends Newspaper My colleagues at work/ school My family Facebook Magazines Bill boards Whatsapp Fliers/ Brochures Twitter Google+ Instagram YouTube 4% 4% 3% 3% 2% 9% 8% 7% 13% 12% 25% 24% 35% 48% Which are your main 57% sources of news and information? Word of mouth is a crucial communication channel as many people rely on their friends colleagues and family for information. The power of WOM basically lies in the social connections among people. Social media channels, if several channels are employed, are also well ranked an information source as can be seen on the reliance on Facebook, Whatsapp, Twitter, Google+, Instagram and YouTube 9
Is Disposable income the Answer to Insurance Uptake? South Africa Nigeria Kenya Ghana Insurance penetration 14.3% 0.3% 3% 2% GDP( $ Billions) 314.5 568 63.4 47 Per Capita Income ($) 5700 2540 1570 1696 Literacy levels 86% 68% 85% 58% 10
Protect the image of the industry Protecting the image of the insurance sector sustaining a positive and credible image Instilling professionalism Engaging in CSR activities Engaging the customers Regular service calls Points of contact Open-day Bulletins Consumers need constant re-assurance their investments are safe, and that they made the right decision
Taking the customer to class Move awareness of insurance beyond the basic levels Educate and sensitize customers through varied channels, and reduce over-reliance on sales agents Schools are the main source of awareness among young potential customers early education and engagement can build the right mindset over time Demystify the offering and break-down the mental barriers that exist in consumers minds and tackle the negative perceptions of the insurance sector There is over-reliance on agents to educate the public which conflicts with their personal objectives to maximize sales
Tapping into consumers psyche Main Peace Comfort Family What is valued Others Money Friends Happiness Employment Death Failure HIV Fears in life Sicknesses Carjacking War Succeed in life Fulfill dreams Become rich Leave a good legacy Aspirations Responsible person in life Role model in the society Bring change in the society Products need to make a connection with aspirations and values we tend to over emphasize the fears
Taking a rightful position in the share of wallet Insurance is perceived to be expensive and a luxury Insurance is unlikely to be given a priority in the shopping basket It is likely to be dropped from the shopping basket incase of reduced income due to the likely ambivalent relationship with customers Entertainment A% Investments X% Insurance Y% Food Z% How do we overcome this scenario? Aim to move the customer beyond the functional aspects to the more emotional aspects Get customers to understand the value of the insurance concept Diversify our portfolios to cater for different categories
Messages will need to stand-out and emerge from the clutter News papers TV Radio Word of Mouth SMS Billboards Internet Fliers / Brochures Walk-ins Magazines Social media There is information clutter hitting consumers through a myriad of channels There is competition for share of voice extending beyond the industry category Reach your customers through multiple forms of media... advertising works because it's memorable and repetitive the same tactic should be employed when reaching insurance customers Of course in doing so, businesses must make the right connection and messages must be well targeted Sometimes a carefully worded letter in the mail can provide language that is simultaneously suited to each of the stakeholders involved Other times, you may need to employ different types of communication pieces to reach every stakeholder. If the decision-maker is a workaholic, you may not get to talk with her. The ability to represent your company and services professionally, across many forms of media, proves important if you are limited to email or even voice mail messages
End Thank You