Blue ICT & Marketing Solutions Software Solutions, Digital Marketing,Payment Systems, Websites, SMS and Digital Marketing Sun, 18 Mar 2018 16:09:23 +0000 en-US hourly 1 Blue ICT & Marketing Solutions 32 32 Insurance for Millenials in Kenya Sun, 18 Mar 2018 16:09:23 +0000 Read more…]]>

Across industries, millennials have forced businesses to adapt and redesign how they operate. Like strong ocean winds with sailors, millennials are altering the course of companies the world over and the insurance sector is no exception.

Millennials are people born between 1980 and 1996, characterized by their heavy interaction with technology.

Thanks to the breathtaking speed at which technology is developing, millennials have developed unique characteristics that have left companies trying to catch up; including digital savviness, short attention spans (due to a lot of distraction from information overload on the internet) and a tendency to be more conscious about businesses’ impact on society.

Nearly three-quarters of our population in Kenya is under 30 years, with 10.8 million people between the ages of 15-30 years. Considering the population is only getting younger, insurance companies are beginning to see the need to prioritize service delivery, customer experience and accessibility across devices in order to boost insurance penetration among the youth.

For instance, a study by insurance, consulting and research firm Limra found that less than 20 percent of people between the ages of 18-34 said they were likely to buy life insurance. This is attributable to millennials’ tendency to delay in getting married, having children or buying homes-a clear signal that their market different and thus has to be handled innovatively.

Locally, Industry disruptors like Grassroots Bima (named among the top 100 financial technology firms in the world in 2017), Bimanet and UAP Insurance (through a partnership with Safaricom) are successfully innovating with mobile-driven services, like the WazInsure app and M-TIBA to reach customers where they are.

Additionally, insurance companies could shake up their existing policies and offer flexible payment options where the insured can modify the premium amount and scheduling of payments as they see fit. Although this route could negatively affect insurers’ cash flow that is necessary for customer acquisition or product development, risk mitigation strategies like credit insurance, to hedge against policyholders who fail to pay could make it successful.

This is one of the principles of the increasingly popular concept of on-demand insurance, where you only take an insurance cover when you are exposed to a risk, for instance, only having to pay for life insurance when you go mountain climbing, or paying accident insurance when trying out an extreme sport like off-road biking.

Quoting James Norman, KPMG East Africa Head of Insurance, about what insurers can do to reach more millennials, “take insurance to them (millennials), make it useful and interesting, a value-add that fits their lifestyle.”

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What is Trade Credit Insurance? Sun, 18 Mar 2018 16:06:15 +0000 Read more…]]>

Until very recently, one of the biggest supermarket chains in the region was invisible but of late, their shelves are empty of the attractive imported stuff which the middle class enjoyed stocking at their homes. What happened? Suppose you were their supplier who over the years had been paid regularly within the credit period but you now have not been able to collect debts over 365 days? What if they were your biggest buyers ? How do you protect your balance sheet or receivables? Suppose you had supplied road construction material or equipment to the Government who later ran into financial challenges?

If you had a Trade Credit Insurance you would still be in good business since the insurer would have paid your unsettled invoices. So how does this unique insurance work?

How does credit insurance work?


How it works is simple: A Koolridge partner office monitors the financial performance and well-being of your customers. Each of these customers will be allocated a grade that reflects the health of their activity and the way they conduct business.


The 4 reasons why credit insurance improves the profitability of your business


Delivering comprehensive protection against the risk of insolvency
Enhancing your customer relationships
Improving banking relationships and access to finance
Supporting sales expansion

Credit Insurance Example

If your company’s profit margin is 5% and one of your buyers defaults on a debt of Kshs 10,000,000, then you will have to produce additional sales worth Kshs 200,000,000 to make up for lost profits. Non-payments weaken your company and lower its investment capacity. A credit insurance policy helps manage your account receivables and mitigate your losses in the event of non-payment.​

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Signs that Your Company Needs Trade Credit Insurance. Sun, 18 Mar 2018 15:59:28 +0000 Read more…]]>

As a small business owner, you have a lot to worry about. From keeping up with the day-to-day demands to pleasing customers to balancing the books, business owners have a lot on their plates. One challenging area of running a business that many small business owners overlook is the risk of bad debt. In fact, the average small business owner carries over $195,000 in debt, so dealing with bad customer debt can cause some serious damage to a business’ financial health.

Good financial health is essential for the success and the livelihood of small businesses. The financial health of small businesses is also an indication of the economy’s performance. There is a lot of ways to maintain the financial health of your business, which can include properly managing customer payment obligations and mitigating the risk of bad debt by acquiring trade credit insurance.
What is Trade Credit Insurance?

The purpose of trade credit insurance is to protect businesses from financial loss due to credit risks, default accounts, insolvency or bankruptcy from customers. Trade credit insurance is designed to specifically mitigate risks to accounts receivables.

Before you think that trade credit insurance is a luxury you can’t afford, especially if you are already struggling with cash flow, many small and medium-sized businesses purchase trade credit insurance for this very reason: to help them mitigate the financial risks associated with bad consumer debt.
5 Signs That Say You Need To Purchase Trade Credit Insurance for Your Business
1. A Lot of High Customer Credit Risks

Customer bankruptcy is a common occurrence, which can make collecting on invoices incredibly difficult. If businesses aren’t able to collect accounts receivables in a reasonable amount of time, they are going to see a negative effect on their cash flow, which hinders the overall financial health of the business.

If this is something that your business is struggling to manage, then it may be a good idea to revisit your credit terms. You may be extending credit to customers who aren’t credit-worthy or who have a high credit risk, which is another good reason you need trade credit insurance.
2. Sales Opportunities Need Quick Turnarounds

When a business is presented with a sales opportunity, it’s important for businesses to act on this opportunity quickly. Companies also need to assess the financial stability of their potential customers and the legitimacy of their purchasing power before extending any amount of credit. Of course, the likelihood of a customer making a purchase is much greater when they have credit available, however, this doesn’t always mean that the customer will pay his or her bills.

By having trade credit insurance, businesses can feel better about extending credit as needed to the customer, ensuring the sale and ensuring the business will not suffer a loss.
3. You Need To Compete With Your Credit

Trade credit insurance allows businesses to compete with their competitors’ credit limits and payment terms. Let’s look at a quick example: If one competitor offers customers payment terms of $100,000 line of credit with 60-day terms, and your business can only afford to offer $50,000 with 15-day terms, which company do you think will win the business?

Businesses that purchase trade credit insurance are able to extend riskier credit terms to customers knowing that they have a layer of financial protection beneath them in the event of bankruptcy, insolvency, and default.
4. You Want Your Business to Grow

A business that chooses to purchase trade credit insurance is one that is able to build and grow. However, this can be difficult when businesses struggle with cash flow or are struggling to collect payments.

Trade credit insurance can bridge the gap between sales and finance departments, while also reducing collection calls.
5. Your Business Needs Stable Financial Health

The average accounts receivables for a small business represents up to 40 percent of the company’s cash flow. If your business isn’t collecting accounts receivables, imagine how this looks to investors or banks when they review your company’s financial health and stability.

Trade credit insurance provides businesses with a blanket of protection in the event of default. As we already discussed, these events can negatively impact cash flow, which can make it difficult for the business to grow further or ever reach a level of financial stability.

Finally, trade credit insurance is great for small businesses, helping them better manage and offer credit and payment terms for customers, maximize sales opportunities, bridge the gap between sales and finance departments, improve the overall financial health of the business and give the owner peace of mind.

With trade credit insurance, businesses can stop worrying or spending time on accounts receivables or making collections calls and focus more on the day-to-day issues that matter most.

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3 Features Every Insurance Portal Needs Fri, 16 Mar 2018 12:11:30 +0000 Read more…]]>

Portals for insurance customers can offer any number of features. Which are the most important?

We suggest these three:
1. Access to Documents

For most of us the time we talk about insurance is when we need to prove we have it. Either to the police officer that just pulled us over, or to the receptionist at the doctor’s office we just walked into.

When’s the last time you cleaned out your glovebox? I’m guessing there are 2-3 copies of your proof of insurance in there, and odds are none of them are current.

Having access to quickly find and print out a fresh copy is a great portal feature. Many states even allow drivers to carry electronic insurance cards. All the better since your smartphone has a search engine while your glovebox does not.
2. Claims Management

The insurance business model revolves around claims. As a customer it’s often stressful and hard to initiate and track a claim. Or to find records of a past claim for insurance or legal purposes.

Your portal should allow customers to see their history of claims. They should be able to track the status of a current claim. They should be able to communicate with you about that claim, and have access to all past communications about it.

And customers should be able to initiate a new claim.
3. Use the Technology

I recently had a breakdown.

My car’s fuel pump quit. I was stranded alongside the road. I called my insurance provider to initiate getting my car towed.

It took a full hour to simply communicate where I was. The agent couldn’t find the street name I was giving him. He didn’t agree that the exit I just took off the highway existed (even after I walked back up the ramp to confirm the number).

Broke down. Blocking traffic on a busy road. Shouting into my phone. Ducking down next to my car to try and hear him on the other end.

I asked if he had an email address. I could load my Google maps app, drop a pin to my current location, and send that in an email or text message.

No go. My insurance provider “wasn’t set up for that.” No smartphones there, evidently.

Yea, your portal might be “mobile-friendly”. It displays on a mobile device.

But is it really taking advantage of the technology?

Can users geo-locate a new claim?

Can they take a photo of their new car’s VIN plate and submit that, or do you make them tap in a 17-digit string and get it right?

Think past just displaying correctly on a mobile device. Find the pain points of interacting with you, and use the technology your customers are literally holding in the palms of their hands to solve those pain points.

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