Amaco offers free car clinics as revenue falls

Insurer Africa Merchant Assurance Company (Amaco) is courting motorists with free vehicle clinics to raise revenues after its auto market share fell by 24 percentage points in five years amidst fraudulent claims.

The insurer said it is looking at hosting free vehicle checkups for customers annually to connect with clients.

“We are taking reports directly from our customers to closely understand their key areas of concern beyond the information we get from our agents and brokers,” said Amaco general manager Elizabeth Koskei.

The firm held the inaugural auto clinic in Nairobi last Saturday.

Ms Koskei said the firm will use the assessment report from the first auto clinic to develop a future interaction plan. It is currently working with 25 garage and dealers as partners to assess conditions on insured vehicles.

She said the firm will use the new strategy to sell its insurance products and take away market share from rivals.

Amaco share of motor segment has reduced significantly to 56 per cent from a high of 80 per cent in 2011 on the back of what it terms as huge fraud related losses.

“We have since changed strategy for third party in the motor commercial PSV, replaced passengers with assets: We only cover the vehicle due to lack of inventory on passengers by matatu operators,” said Ms Koskei.

READ: Price wars, fraud push 14 insurance firms into losses

Its non-motor segment has more than doubled its share of overall business to 44 per cent from 20 per cent over the period, she said.

The insurer has partnered with commercial banks to extend insurance financing to its clients and increase the uptake of its comprehensive cover.
They include NIC, KCB, Family, ABC and Faulu microfinance bank.

Under the arrangement, vehicle owners settle premium on instalments with the banks as guarantors.

Uptake of motor vehicle insurance is estimated at 70 per cent on tight regulation that makes it mandatory for drivers to get insured.