Jubilee can cement its legacy by targeting ‘bottom’ clients
"What stands out is the firm’s persistent disregard of pricing and cost as the selling point." PHOTO | FILE
What you need to know:
What the Jubilee Insurance founders and management need to now start thinking of is “leaving a legacy” in the industry by developing a product that touches the lives of the lower segments.
This week the region’s leading insurer is just a couple of years shy of being an octogenarian. This is not a short time by any estimates to be in business.
Tracing back the roots of the firm’s history reveals the usual humble beginnings of most companies. This espouses the mantra of good business, “Start small, work hard, stay alive.”
Of course there are a few things that may have enabled the firm achieve and maintain its market dominance. One of them is the strong network of partners, visionary leadership and the secret ingredient of “innovativeness”.
In a market saturated with products selling as “most affordable” Jubilee has consistently marketed its product on a different byline of “reliability”.
In one of its marketing billboards, Jubilee claimed to be the leader in claims settlement. The verdict on this is out there with the service users, doctors and other providers.
What stands out is the firm’s persistent disregard of pricing and cost as the selling point. Instead they have chosen product superiority as their direct marketing strategy. This business approach perhaps will serve to offer a lesson to competitors: sometimes the product is more important than the price.
A couple of years ago, I was working in a remote area in Tsavo. In the tourism industry competition for guests by hotels is stiff. While many hotels marketed themselves as convenient to access based on proximity to the road and cost friendliness, one or two opted for a different approach.
In the words of one of the hotels operator, “If you are looking for a cheap place then we are not. If you are looking for uniqueness then we are.”
As market competitiveness increases, many players are engaging in a vicious premium undercutting war that is leading to perennial losses. Examples abound and none too recent than the ongoing tussle over a group medical scheme. The fight between the two insurers just serves to highlight the problem with our business systems.
If it costs Sh40 for a loaf of bread to reach the shopkeeper from the factory and you find someone selling loaves at Sh25, do you walk away or do you buy two loaves? Unfortunately many will buy two.
So what is next for Jubilee after a long period at the helm of the market?
In the traditional African setup once a man retires he joins the ranks of elders – his role is to dispense wisdom to younger generations and offer counsel and guidance. However, since Jubilee is still in business, this is unlikely to happen.
What the Jubilee Insurance founders and management need to now start thinking of is “leaving a legacy” in the industry by developing a product that touches the lives of the lower segments.
As it stands, many people cannot afford their products. Could a micro product be one of these legacies?
The raging war for “first position” market share between the top three insurers is certainly going to intensify. The unintended consequence is that most likely Jubilee will cede its leadership position soon. This is when the firm’s innovativeness will be called to test.
For the health insurers at the bottom half of the rung, lessons can be gleaned from Jubilee’s operations and model. The next focus will be the untapped bottom-of-the-pyramid clients.
