International
A multidisciplinary Insurance Reorganisation team from KPMG helped Bupa Global gain authorisation for a new insurance entity in Kenya – achieving the fastest ever authorisation that the Kenyan regulator has ever granted.
Bupa Global has an ambition to increase the availability of international private medical insurance to people around the world and stimulate emerging economies through the inward investment that this brings. As part of this, Bupa wanted to establish its own insurance operation in the rapidly expanding Kenya market.
Setting up a new insurance company in a developing overseas economy is a complex undertaking that involves coordinating many moving parts. Bupa Global had already set up a project team and begun engagement at a senior level in Kenya, principally through a facilitating agent in the country and initially employing the services of a local legal firm. But these were only early-stage steps and Bupa wanted to formalise and accelerate the process – deciding to put the project out to tender to enlist outside consultancy support. Bupa appointed KPMG to support it at the end of a competitive tender process.
KPMG in the UK deployed its multidisciplinary Insurance Reorganisation team with deep subject expertise in insurance regulatory licensing, operating model design and key related fields (tax, legal, finance) and worked closely with KPMG in Kenya who provided invaluable support on the ground.
Through rigorous project management and close collaboration with Bupa’s project team, the work progressed through key milestones, dealing with several hurdles and challenges along the way.
One of the key steps was to work with Bupa to design an operating model for the new company in Kenya and how this would fit into the wider Bupa Global operating model. For this, KPMG was able to draw on extensive knowledge of insurance leading practice and structures, but it was also important to consider the nature, culture and regulatory requirements of the market in Kenya. KPMG’s understanding of the UK and Kenyan operating environments meant that the team was able to bring truly informed insights to Bupa and help them define an effective operating model.
One further important aspect, which was key to gaining authorisation, was to help recruit Kenyan senior executive management and non-executive board members for the new company.
As a result, Bupa received the fastest authorisation that the Kenyan regulator has ever granted. The new entity will boost the Kenyan economy through employment and taxes, while more people, both local and expatriates, will have access to medical insurance. This could also become a platform for expanding into other countries in Africa, bringing economic and health benefits to more parts of the fast-developing continent.
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