Unique, Innovative & Transforming Insurance for Sacco Members.
Madison Group, a top-ranked insurance provider, stands at the forefront of innovation in insurance, fundamentally reshaping the experience for Saccos and their members. As a leading and pioneering insurance provider, Madison has become a game-changer, dedicated to offering cutting-edge services that not only create wealth but also safeguard it for all stakeholders involved.
Established in 2001, Madison is a customer-centric financial services company, fully licensed and regulated by the Retirement Benefits Authority (RBA) and the Capital Markets Authority (CMA) as a Fund Manager. Its diverse, skilled team excels in Investment Management and Advisory services, bolstered by advanced ICT systems and a strong culture of innovation, collaboration, and customer focus.
With a strategic commitment to the Cooperative Movement, Madison is passionate about crafting bespoke financial solutions that deliver exceptional returns and align seamlessly with Saccos’ investment goals and risk tolerance.
In a recent interview with Co-op News, Mr. Samuel Chege, Managing Director, Madison General Insurance, provides valuable insights into the company’s innovative insurance solutions tailored to Savings and Credit Cooperative Organizations (SACCOs). He stresses the significance of customizing insurance products to meet the unique needs of SACCOs and SACCO members and highlights the importance of educating them about the benefits of insurance services. Additionally, Mr Chege discusses in detail the company’s plans for expanding its offerings designed explicitly for SACCOs in the future.
Kindly provide us with an overview of Madison Group.
Madison Group has three subsidiaries which include Madison General Insurance, Madison Life and Madison Investment. The company has been operating in the insurance business for the past 40 years.
What innovative insurance products have Madison Group developed for Saccos and their members, and what impact have they had?
We have developed innovative insurance products specifically designed for Saccos and their members. One of these products is the Banker’s Blanket Bond, which provides coverage for Saccos against cyber security risks and theft. The response to this product has been quite positive, with several Saccos purchasing this coverage over the last couple of years.
Another product we offer is our motor commercial cover, where we currently hold a leading position in the industry with a market share of 12%. Our value proposition for motor commercial insurance is centered around actively listening to our customers and ensuring they can return to business as quickly as possible when they file a claim.
A significant competitive advantage of our motor commercial policies at Madison is the cash-in-lieu feature. This allows customers to begin repairs promptly while receiving 50% of the total assessment amount upfront. Once the repairs are completed, we provide the remaining 50%. This approach has helped us maintain a substantial market share in motor commercial insurance.
How does Madison Group ensure that its products meet the evolving needs of Saccos and their members?
We have been working to understand the needs of Sacco members because traditional insurance products often do not suit them. Our goal is to develop specific, tailored products for Saccos, such as a business insurance option that addresses their unique insurance requirements.
Many traditional products focus on technical aspects like fire and theft coverage, which can be overwhelming for Sacco members, most of whom operate in the SME market. What they truly need are simple solutions that effectively cover their business risks.
To meet this need, we offer an SME insurance product that provides coverage of up to Ksh 3 million. This product encompasses various risks, including fire, theft, and loss of stock, all in one comprehensive policy. This way, when Sacco members conduct their business, they can feel secure knowing they are fully protected, rather than juggling multiple policies.
How has Madison Group developed and maintained partnerships with Saccos?
We have established partnerships with Sacco umbrella bodies and associations, actively participating in and sponsoring various Sacco activities. Our commitment is to continue engaging with Saccos to understand their needs better, ensuring that we provide innovative and relevant insurance services. We see significant potential in the Sacco market and plan to grow our premiums to over Ksh 2 billion within the next three years. To achieve this goal, we are implementing deliberate strategies to reach our target.
What are some key achievements of Madison Group in developing products for Saccos and their members?
Our market in the Sacco industry is steadily growing. We believe that the future of the insurance market lies in Saccos. We aim to make a significant impact. Currently, we are working with over 20 Saccos, and we have witnessed a significant change in the perception of insurance services among Sacco members. Together, we strive to serve, grow, and protect the wealth of Saccos and their members.
How has Madison Group incorporated technology and innovation into its product offerings?
Technology and innovation are the engines of our growth. We have created products for Sacco members that can be easily purchased from their phones using the USSD code *828#. These products are straightforward and allow for a seamless end-to-end buying experience. For example, when traveling, members can purchase our travel policy, personal accident insurance, and motor policies directly through the USSD.
How does the regulatory environment affect Madison Group’s product development for Saccos, and are there any changes you hope to see in the regulatory framework?
When considering the regulatory environment, I would analyze it from two perspectives: the insurance regulator, which is the Insurance Regulatory Authority, and SASRA, the body that regulates SACCOs. Recently, both organizations have increased their efforts in sensitization. However, one crucial aspect that is often overlooked is the flexibility of the products we offer. Regulators must ensure that we have products specifically tailored for SACCOs. Traditional products may not always meet the needs of SACCO members, so it’s essential to develop products based on what those members truly want.
What’s Madison Group’s approach to sustainability and social responsibility, especially in relation to the Saccos and their members?
Madison Group places significant emphasis on sustainability and social responsibility, particularly in relation to SACCOs and their members.
According to our policy, we are exploring how we can partner with Saccos to enhance their services for members. For example, when we collaborate with Saccos involved in daily and various types of farming, we can ensure that they receive seedlings for planting trees. This initiative will promote a more sustainable ecosystem. We also aim to engage with Saccos to identify further interventions that will help us build a better ecosystem for the industry’s sustainable growth.
What are Madison Group’s plans for expanding or enhancing its product offerings for Saccos and their members in the future?
Our plan to enhance SACCO products is clear. We have a flagship product, the Banker’s Blanket, which provides coverage against cybersecurity and theft, along with other policies specifically designed for SACCOs. We are developing a micro product for SACCOs that will cover their entire business. This product will allow SACCO members to access comprehensive insurance coverage that is both simple and easy to understand.
We will collaborate with SACCOs in rolling out this product, actively listening to their needs to ensure we create a solution that fits their business and benefits their members. Additionally, we will continue to support SACCOs in their activities, as this engagement helps us understand their needs better and develop appropriate solutions.
What advice would you give to Saccos looking to maximize the benefits of insurance products for their members?
Saccos should actively seek to understand the diverse range of insurance products available today. As an insurance company, our goal is to clarify and simplify insurance services for everyone. For instance, fire insurance premiums offer extensive coverage that can safeguard your valuable assets. We’ve witnessed the devastating impact of property loss due to unforeseen events like protests or fires, and many Sacco members are unaware of the insurance options that could protect them in such situations. At Madison, we are committed to providing Sacco members a life without worries by making insurance solutions accessible and understandable.
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At the heart of the Co-operative Movement, Madison is dedicated to supporting you. We are committed to understanding your unique needs and creating tailored products just for you. Together, we can embark on this journey of growth and success. Our partnership with you ensures that Sacco members receive the coverage they deserve. We are here to serve, grow, and protect the wealth of both Saccos and their members.
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