Everyone is well aware of the increasing number of insurance agents now widely recognised as entrepreneurs. It’s a scenario we are all too familiar with; in fact, agents run successful businesses when they change tact.
Whatever it is, Peter Nduati symbolises this new trend.
The 45 year old Chief Executive started Resolution Health East Africa in 2001 (now Resolution Insurance) after quitting a plum job at AAR Healthcare, a leading insurer back then. Thanks to the portfolio of clients and 17 employees, he founded First Benefits Ltd and partnered with South Africa’s Metropolitan Health Group. The partnership did not last.
But Mr Nduati is not afraid of failures and his dreams of creating a giant health insurer did not quickly become a nightmare, even when the deal with Metropolitan failed to take off.
Back in the 1990s, insurance industry wasn’t as regulated as it is today. The insurance law was amended in 2011.
Once, insurance providers avoided being classified as brokers by converting into general insurance. Interestingly, Resolution Insurance was among the first three companies approved after raising the statutory Sh300 million. The insurance provider restructured and even cut owner managers’ shareholding (which comprises 20 percent shares as required by law.
Mr Nduati has been at the centre of the insurance provider’s brisk expansion since its inception. And now Resolution Insurance resonates beyond Kenya, and even places as far as Uganda, Tanzania and South Sudan boasting an army of more than 400 agents as well as brokers.
It was 1993 when Mr Nduati discovered the gap in the insurance industry. Since then, he has mentored many people from sportsmen to musicians and is working even harder to achieve greater things.
Resolution Insurance’s main business remains medical insurance and is also sell products to corporate groups, small and medium enterprises and families.
In January 2013, the company got the Insurance Regulatory Authority’s nod to trade as a general insurer and was licensed to underwrite personal accident, workmen’s compensation, liability, medical and miscellaneous classes of general insurance business.
It has successfully provided medical insurance for the last 10 years and this line of business is the main focus. “We are delighted to be an integral part of the dynamic Kenyan insurance industry,” he says.
The general insurance license laid the foundation for Resolution’s employee benefits products, which offer a one-stop shop for corporate organisations. This led to the launch of the Work Injury Benefits Act (WIBA) Plus and Group Personal Accident Cover (GPA) products, are designed to enhance what is currently available in the market by offering additional benefits at affordable rates.
“This economy has huge potential for growth and we are glad that we will contribute positively towards the development of this industry and create more employment opportunities. As an innovative organisation, we will offer unique, pioneering and diversified products that would rejuvenate the insurance industry. We aim to be modern in our outlook, creative in our approach and energetic in our attitude.”
Also, Mr Nduati is involved in building East Africa business landscape, and was announced CNBC Entrepreneur Award of the Year winner 2013.
With a turnover of KSh2.4 billion in 2012, Resolution Insurance is very profitable..
Although there are 48 insurance companies in Kenya, Resolution is a major force in the country’s insurance industry and is currently set to expand the region. It began its regional expansion with the launch of Resolution Health Tanzania. where it has mostly corporate clients. In Sudan and Uganda, however, it’s working in partnerships.
Through partnership with Myhealth, the company is also looking into the possibility of conducting business online.
BY VICTOR ADAR.
Peter Nduati, Resolution Insurance CEO
Peter Nduati, Resolution Insurance CEO