By Waithera Thinguri, Head of Business Growth, Lami Technologies
Many of us are only familiar with four types of insurance that most financial experts recommend we all have: life, health, general. When it comes to businesses and corporate organizations, the key types of coverage you should make sure to have is general liability, property, professional liability, employee health, and worker’s compensation insurance.
In this piece, I specifically want to discuss the occurrence of overlapping and overinsurance when a policyholder insures their property, specifically for businesses. I will also highlight how we at Lami, are supporting organizations to solve this through insurance optimization.
Waithera Thinguri, Head of Business Growth
So let’s start with some definitions of what is overlapping and overinsurance.
Overlapping insurance is when a business has multiple insurance policies with the same coverage for the same risk.
Overinsurance occurs when a policyholder insures their property for more than the cost needed to cover it. This is a waste of money on two fronts. Insurers are only obliged to pay out a maximum claim equal to the cost of the property.
Now, let’s talk about how we can solve overlapping and overinsurance by leveraging Lami’s tailor-made optimization solution that enables businesses to manage cost-effectively. In this process, we help insurers fine-tune the premium we will charge for a policy. We do this by carefully analyzing a client’s insurance portfolio to avoid and eliminate cover overlap and overinsurance. Through this process, the insurance policies are restructured to provide customers with premium savings without compromising the scope of coverage.
In my years of experience working across different sectors in the corporate space, I have seen first-hand how unexpected risks have brought businesses down. I have also seen how costly insurance is and can now testify that optimization has tremendously helped businesses by ensuring their companies are comprehensively insured in a cost-effective approach. The process also allows businesses to purchase a wider scope of cover within their existing budgets, and additionally will allow businesses to cover more risks.
I am very delighted to share that our optimization product has had great success for reputable FMCGs like KFC. We worked through probability to offer full coverage with no overlapping. KFC has 22 branches across Kenya that have traditionally been covered against fire and perils. We reviewed their portfolio and restructured the cost of their coverage by providing them with the exact benefits they previously had at a more affordable cost allowing them to save 70 percent of their insurance budget.
We strongly believe that every business could benefit from insurance optimization by analyzing their insurance portfolio and understanding the current gaps. Our team of experts is available to review and provide alternative cost-saving options for businesses.
If you are interested to know more about our optimization product, reach out to me at waithera@lami.world, and I will be happy to help!
