GK Financial Group (GKFS) has set aside US$1 million in the current year to invest in new insurance technologies (insurtech) so as to bolster the operations of its regional insurance companies.

Since January the financial services arm of the GraceKennedy Group has entered into partnerships with insurtech platforms Haven Technologies and Novidea, which should result in the company improving its insurance policy administration systems and data-driven insurance management platforms, respectively.

Commenting on GKFG’s partnership with Haven earlier this year, GK Group CEO Don Wehby noted, “Our engagement with Haven Technologies is aligned with GraceKennedy’s 2030 vision which will see us expanding our services via world-class digital solutions. Digital transformation is a key strategic growth and performance driver for GraceKennedy, and the development of GraceKennedy Financial Group’s digital capabilities and offerings to meet the ever-evolving needs of our customers represents an important investment for us.”

The partnership with Haven Technologies serves to support the roll-out of the insurtech’s platform for three GraceKennedy Creditor Life products to the insurer’s current banking partner in Antigua. With phase one of the partnership now complete, both parties have turned their attention to the implementation of GraceKennedy’s Creditor Life products in additional countries and the implementation of new products.

At the same time, the partnership with Novidea will allow Jamaica-based Allied Insurance Brokers Ltd to “fully automate” coverholder processes on behalf of Lloyd’s of London, for which it is an agent in the Caribbean. Alliance provides general liability, medical malpractice, and personal accident, including reinsurance coverage on behalf of Lloyd’s syndicates to clients in Jamaica, Antigua, The Bahamas, Barbados, Grenada, St Lucia, Turks and Caicos, and other territories within the Caribbean.

When the Jamaica Observer enquired about the nature of these investments, Wehby disclosed, “GraceKennedy views investment in technology as a core part of our strategy. Our insurance division will be spending in excess of US$1 million on new technology solutions in 2023.

“GK’s financial services business is regional in focus. The initiatives that we develop are designed to be rolled out in all the Caribbean markets in which we operate.

“For example, the Haven Tech technology platform is a mutli-market, multi-currency solution that will become available in every GK Life market, subject to regulatory approval. The platform provides a positive, seamless customer experience across multiple channels,” he added.

The group anticipates that the investments and partnerships will redound to operational efficiencies and a relative reduction in operating costs, but noted that customer service delivery and experience are the primary drivers of GKFG’s digital strategy. With this in mind, Wehby underscored the three main areas of the group’s digital strategy:

Customer Self Service — deploying digital solutions which offer our customers the convenience of accessing insurance coverage without having to visit a physical location will give us a competitive advantage.

Operating Efficiency — the implementation of strategies such as developing proprietary solutions and leveraging cloud based platforms will optimize our operations and make it much easier for customers to do business with us.

Launching New Products — through digital channels GKFG is now able to launch innovative products to market more quickly, using effective route-to-market strategies

“However, another key goal of our digital strategy (inclusive of these tech partnerships) is increased revenue. This will be achieved by launching new and innovative products, improving customer acquisition rates for existing products, and enhancing customer experience to drive higher retention rates,” Wehby further explained.

For financial year 2022 GKFG had mixed results, with revenues increasing but experiencing a decline in operating profit. While its banking and investments portfolios saw profitability rise relative to the previous year, the insurance division recorded decreased profits on account of “higher insurance claims due to inflation”.

When asked about the impact of increased reinsurers’ rates in the region, Wehby pointed out, “Due to the strength of GK’s long-standing relationship with our reinsurers GK was able to successfully complete its reinsurance renewals in January 2023 and our outlook for the year remains positive.

“GKFG is very optimistic about the future of our insurance business. In addition to our digitalisation efforts, over the past few years we have strategically expanded our insurance business across the region. We are focusing our efforts on maximising the returns from this increased scope and scale,” he added

GKFG’s insurance business now includes creditor life insurance operations in 12 markets through GK Life; health and life insurance operations in Jamaica through Canopy Insurance — a joint venture with Musson; property and casualty insurance operations in six markets through GK General Insurance and Key Insurance; and insurance brokerage operations in two markets through Allied Insurance Brokers and GK Insurance Brokers.