The future is full of opportunities —Ashok Shah

Ashok Shah is the Group Chief Executive Officer of APA Apollo Investments and subsidiaries such as APA Insurance, APA Life, Estate Management and others in Kenya. The Company has a presence in other African Countries like Tanzania, Uganda and many others. Shah is a visionary business leader whose strategic foresight and deep expertise have shaped the insurance landscape in East Africa. As Group CEO of Apollo Investments Limited, the parent company of APA Insurance Kenya, APA Life Assurance, Apollo Asset Management, APA Micro Insurance and APA Insurance Uganda, Ashok has steered the Group’s evolution into one of East Africa’s most respected and trusted financial services providers. In this interview with SEGUN KASALI, he speaks on a number of issues. Excerpts:

How would you describe your early life?

I did my primary schooling in my hometown of Nyeri in central region of Kenya, but since there was no secondary school there, I had to move to Thika for my high school education. After that, I went to the United Kingdom for my A-levels and university. Growing up back then was simple but full of joy. We didn’t have wealth or luxuries—we walked to and from school every day. Some of the friends I had then are still around, though others have moved on and we’ve lost touch. I have fond memories of how we made the most of what we had—we didn’t have proper cricket bats, so we made our own with whatever we could find.

When it comes to education, I was fairly well. I could continue passing exams even though I was not studying too much. And in the same way, I sort of developed leadership qualities. In my secondary school days, I started the youth club. I participated in school games. In those days, games were not compulsory. So, I participated in running. We used to run around Thika to the waterfront. I participated in other areas like School drama festival, which used to be held in Nairobi. I participated in debates.

I did fairly well academically; I managed to pass my exams consistently, even without excessive studying. 

Along the way, I also began to develop leadership qualities. During my secondary school years, I founded the school’s youth club and actively took part in extracurricular activities. Sports weren’t compulsory at the time, but I chose to run—often around Thika. I was also involved in school drama festivals, which were held in Nairobi, and regularly took part in debates. Looking back, those experiences helped shape my confidence and ability to lead.

 Unforgettable memories

The main thing was like in primary school, there was a time I would leave home for school but I won’t go. Meanwhile, everyone at home would think I was in school (Laughs). I never ended up in a classroom. I think it had happened for a whole term. My parents did not get to know. In those days, we would not take report cards home. But after that term, I started going back to school. After standard seven, we used to take exams. But, I did very well in the exams despite my truancy (Laughs).

One of the most unforgettable episodes from my childhood happened in primary school. There was a time I would leave the house every morning, supposedly heading to school—but in reality, I never made it to class! (Laughs) Everyone at home thought I was in school, and I somehow managed to keep up the act for an entire term. Back then, we didn’t have to bring report cards home, so my little secret stayed safe.  Surprisingly, after that term, I went back to school and got serious again. And despite my stint of truancy, I still performed very well in the exams after Standard Seven. (Laughs) Looking back, it’s one of those mischievous moments that still makes me smile.

What were your favourite subjects in secondary school then?

In secondary school, it was mostly English. In Sciences, it was Chemistry. I went to do Chemistry for Higher Education in England. Chemistry was something that I  loved. The other one was Mathematics.

What was your career ambition while growing up?

At that time, I thought I would like to be an Architect. So, I was like I would love to build and design houses. At that time, it was an idea. Architecture looked good and interesting. Houses in those days were really standard. If you went to any Kenya town in those days, most houses were the same—there would be a shop in the front and living quarters at the back and there would also be a courtyard. So, everything was the same. They had the same concept and design. So, architecture was something I really longed for. But, I eventually studied Chemistry at Kingston University in England. The Campus was around River Thames. So, the Chemistry we learnt there was very different from what we had in A’Levels. We used to do Quantum Chemistry, and Processes – very different from what I’d imagined, but equally fascinating.

Insurance is one of the areas you’ve veered into despite studying Chemistry but people have unique ways of defining it. What is yours?

Insurance is really about supporting people to take care of their risks and assisting them by giving them solutions which will help them sustain their lives. Insurance helps them to grow their wealth when they take up Life Insurance policy. Premiums from insurance company will help you to take care of your life, health and others. Insurance is something that helps you grow yourself. That is why we believe that we need to talk about Insurance more for people to see what it can do. Insurance penetration in Nigeria is really low compared to countries like Kenya where you operate and the likes.

What could account for this low acceptance?

I think there are three or four factors. One is that awareness of insurance is very low. Two is that the Insurers are not very good at playing advisory role. I am sure it happens in Nigeria and it happens in Kenya also. They are busy selling insurance to people who already know about insurance and they are small minority. We don’t actually go out to talk about insurance to others.

One key reason is lack of awareness and trust in insurance. Many people don’t fully understand how it works or see its value. In addition, limited access, low income levels, and informal economies make it harder for insurance to take root.  Also, companies usually sell insurance to people who already know about insurance and they are small minority.  We don’t actually go out to talk about insurance to others.

 Who are the others?

I mean farmers because we support a lot of small holder farmers. In terms of affordability, we do a kind of small packages for them and those small covers may take care any eventual risk that may happen. So, we provide cover for the pastoralists.

What are the solutions to these problems that you have identified as obstacles to insurance acceptability?

The solution is that the government has to play a role; the Government and Insurance companies can now tell farmers to cover their crops. While the insurance companies can cover the crops just like we do in Kenya. We ensure that the farmers achieve 70 per cent yield guarantee. So, what happens is that the government subsidises the premium and it is done for two to three seasons. We also provide a bundle cover with the crop cover in case the farmer dies or hospitalized, then we pay the family a certain amount every month for the next six months so that the family can stabilize itself.

Insurance is still not given prominence at world conferences. Why this?

Those conferences are so preoccupied with the world’s economy but we don’t even discuss the leading role insurance can play in supporting the survival of the economy. Insurance is often overlooked because it’s seen as technical and not as urgent as issues like climate change or healthcare. Yet, it is actually a key enabler for managing risks in all these areas, we just need to tell that story better.

 You were recently awarded the African CEO of the Year in Kenya. How do you feel?

It was a surprise win; I had not known that my name had been entered.  It was a huge recognition and at the same time recognition of the works that I have done. We believe that it is the duty of the Insurers to actually go out to tell people about Insurance. I want to advocate that Insurance education be put into curriculum especially for secondary education. When the children are aware at such tender age, they grow up understanding the problems insurance can help them solve.

Where is the place of insurance in the next two to three years in the world?

I think what is going to happen is that there will be opportunities. Number one is that insurance will be more automated; policies can be issued through phones, covers be given through phones. The only thing we need to do is micro insurance solutions.

Is there hope for the industry?

There has to be hope. Absolutely, there is strong hope for the insurance sector. With growing awareness, digital innovation, and increasing demand for protection, insurance is becoming more relevant than ever. The future is full of opportunities.

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