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Alliance Insurance boss says CTI`s prize awards encourage efficiency
2008-07-25 09:53:10
By PEREGE GUMBO.
The annual Presidential manufacturers` prize awards organised by the Confederation of Tanzania Industries (CTI) are increasingly becoming platforms for evaluating efficiency in industrial production and service provision in the economy.
Prize winners take accolades as yet challenging feats demanding increased managerial efficiency to remain at the top.
Alliance Insurance Corporation Limited, become first in this year`s manufacturers` prize award held recently in the City, in the finance, insurance, real estate and business services sub-sector-large industry category.
Following its performance, the company`s General Manager Anantha Krishnan was interviewed by staff writer.
Excerpts
Q: Alliance Insurance has been declared winners in the financial sector in this year’s Presidential manufacturers’ prize of the year, how do you value the accolades?
A: We are humbled by the award and this is a great honour to us. It is a result of good team work and we have a great feeling of recognition.
It would be a stimulant to bring about even better performance going forward.
Q:What makes Alliance feel comfortable working in Tanzania?
A: Tanzania is known for its political stability and economic environment which makes it conducive for business activities to thrive.
The country also commands good and predictable regulatory regime with friendly people and a functioning basic infrastructure.
As the country’s economy grows, so do the needs for insurance.
It gives us comfort to provide solutions to those insurance needs.
Through our life and general insurance products, we equip people to handle their destinies themselves. And this in turn gives us a sense of great satisfaction.
Q: What do you consider to be the future of insurance industry in Tanzania?
A: Insurance facilitates economic activity and facilitates development in general. The location of Tanzania is very strategic and has a very favourable economic and political environment.
As the economy grows, there is need to protect the lives, wealth and assets of the people by offering them innovative insurance products.
Looking beyond the horizon, the insurance industry will continue to grow and this will attract other players.
This should result in customers getting the best out of the industry.
Q: What macro-economic fundamentals are considered important for Alliance Insurance to operate efficiently in Tanzania?
A: As an insurance company we are an integral part of the service sector to the economy implying that we are heavily dependant on human capital.
Hence an ethical, skilled and competent labour force is vital for the efficient operations of our industry.
Growth in information and communication technologies (ICTs) will improve efficiency in our processes leading to offering of quality service to clients and other stakeholders.
Q: Any new products in pipeline from Alliance Insurance?
A: Without letting the cat out of the bag, we are developing products that will be rolled out to the market in the near future.
But these products will complement what we currently have on the shelf and which we continue to improve in order meet the demands of our customers.
Our retinue of Life and Non-Life insurance products has catapulted to our current market position and we will continue to innovate to the satisfaction of our clientele.
In Group Life and Funeral Insurance, we provide product meant for employees and affinity groups while Credit Life Insurance covers loans from financial institutions, mortgage protection and is meant for banks who lend people to buy houses and our micro product for savings and credit co-operative societies (Saccos).
Q: What are the challenges that the company face in the day to day operations as it struggles to diversify service?
A: Collection of premium is a big challenge. The delay in payment of premium by customers to us and non payment of premium in some cases is costing us substantially.
Insurance companies need to collect premium in order to pay claims when they arise and when payment is delayed or premium not paid altogether, it puts strain on our cash flows.
We also have challenges in the mobility of the right human resources from the place of availability to other regions in the country.
Skilled labour is mainly available in major urban areas.
Getting them to work in far flung towns is a problem and this hinders the delivery of our products in such areas.
With improvement in ICT, the problem may be reduced.
Fraudulent or exaggerated claims are a challenge to the industry.
This challenge is compounded by non availability of enough qualified insurance investigators and claims assessors.
However, this can be overcome by educating the insuring public against fraud and by involving law enforcement agencies.
Q: How are sky-rocketing prices of fuel affecting your business?
A: The spiraling price of fuel is a global problem.
We envisage a situation where businesses and people may opt to insure what they need to and this will affect our balance sheet.
This has also not been helped by the soaring prices of food.
All our input costs have gone up and insurance premium seldom rises resulting in strain on our bottom-line. In a sense we have a difficult times ahead.
From the point of view of the country the poorest of poor are unfortunately those who are affected the most.
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