MUA Insurance operates a digital motor insurance calculator in Kenya to give motorists immediate premium estimates as customers increasingly seek financial services online.

John Wachira is MUA Insurance’s Distribution Manager for Regions and Bancassurance and Business Development.

In an article submitted for publication, Wachira said Kenyan motorists increasingly expect to understand insurance options without first visiting an office or making several calls.

“This is increasingly how consumers interact with other financial and commercial services,” Wachira said.

The shift matters to Kenyan motorists because an earlier indication of insurance costs can inform vehicle purchases and policy renewals.

Wachira said the calculator takes information supplied by motorists about their vehicles and processes it to produce a premium estimate online.

The tool uses a statistical pricing approach known as a Generalized Linear Model or GLM to determine premiums from the information provided.

Wachira said insurers widely use these models to analyse factors affecting risk and apply the relationships they identify to pricing.

Customers do not need to understand the mathematics behind the model to obtain an estimate through the calculator.

“The GLM technology supports the pricing process,” Wachira said.

He said integration with MUA’s core insurance infrastructure connects the online quotation process with the insurer’s underlying policy and underwriting processes.

The calculator therefore forms part of a wider insurance process rather than serving only as a separate tool for estimating costs.

Wachira said buying motor insurance traditionally required motorists to find an insurer or broker before waiting for a vehicle review and quotation.

Customers would then decide whether to proceed after receiving the proposed price through that process.

The digital calculator changes the quotation stage by giving customers an indication of cost without waiting for someone to prepare it manually.

Wachira said a prospective vehicle buyer may want to establish the insurance cost before completing a purchase.

A motorist approaching renewal may also want an indication of the premium for the coming year.

Other customers may use the calculator while exploring different insurance options before deciding whether to buy.

For these motorists, earlier quotations could move cost comparisons closer to the beginning of their insurance decisions.

Wachira said MUA designed the calculator to support movement from initial interest through quotation to purchase.

He described the intended online process as one where customers discover a product and obtain information before calculating costs and completing a transaction.

MUA’s calculator links the quotation stage to the insurer’s wider systems supporting policy and underwriting processes.