Old Mutual Kenya has made the decision to standardise on software solutions and services provided by SA's SDT Financial Software Solutions in a drive to improve its operational efficiencies and customer service. The deal also strengthens SDT's growing presence in the south and central African insurance market.
SDT and its services first came to the attention of Old Mutual back in 1997, but at the time, certain strategies of the multinational insurer prevented an engagement with SDT. The decision to switch the Kenyan office to the South African software and services provider was made in 2002, however, when its offerings were deemed the most appropriate for Old Mutual's needs in Africa, including Kenya.
The new software is enabling Old Mutual Kenya to focus on improving its portfolio of Universal Products, which it supplies to a growing number of customers in the region. This portfolio consists of the following products:
* Life Cover: term, whole life, funeral (both adult and child) and accidental death cover
* Investments: regular and single premiums
* Disability: physical impairment, accidental disability and severe illness
Ann Gatonye, Old Mutual Kenya's COO, says: "Old Mutual needed a flexible and reliable system to replace its life administration system, Amarta. It quickly became clear to us that SDT offered the best option that suited our needs."
She adds that the need for updated software originated with the development of the company's Vision 2012 programme. Old Mutual Kenya's Vision 2012 was founded on the following key strategies:
* Focus on operational excellence through benchmarking against world-class financial service providers.
* Deployment of the best technology, ensuring quality integration of systems.
* Training and development to enhance the productivity of staff.
* Risk management by actively putting the right controls in place.
The SDT applications are now in use at Old Mutual Kenya, with 11 employees using the SDT Life policy administration system and another 50 using the SDT GreenKey quotations system. The insurer expects all its agents to be using the systems by 2007.
Having implemented the SDT products, Gatonye says Old Mutual has been able to roll-out new products that are unique in the Kenyan market with the confidence that it is able to deliver the service excellence that the market is not used to, making Old Mutual the market leader.
"Sales have grown by over 80%," she adds. "In less than one year we have been able to achieve the sales equivalent of our previous two years combined."
The company's agents have also been empowered to perform better. They can now produce quotations directly from their notebook computers while out in the field without consulting the office. The software has also allowed the insurer to maintain constant staffing levels in the quotations administration division, irrespective of the increased turnover.
"In addition, staff are able to deliver work of a higher quality and accuracy with the new software. Response and turnaround times have also been substantially reduced since all customer information is readily available from the new systems. Moreover, staff job descriptions have expanded as employees have been able to take on more responsibility, assisted by the new applications."
Having run the system for just under a year, Old Mutual Kenya reached a milestone when together with SDT, it managed to convert the data it had been storing in the organisation's Cape Town office for the last 80 years into the format appropriate to the new systems and host it in Kenya for faster access.
The realisation of local data storage was a big step for Old Mutual Kenya as it improved the company's ability to respond to clients in the shortest time possible.
"Of course, teething problems were experienced during the implementation process and the roll-out of the system to more users, but SDT has provided excellent support and ensured any problems are quickly resolved," notes Gatonye. "Issues that are logged are quickly resolved, and we also conduct a weekly teleconference with SDT to discuss the status of our problems and the systems.
"We have made tremendous progress and seen the morale of our staff dramatically improved through the productivity and efficiency improvements the SDT applications have delivered. We are also looking at a new Pension/Group Life administration system and have already received a proposal from SDT."
The same SDT products are in use by Old Mutual's offices in Malawi and Zimbabwe.
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