The Actuarial Students’ Society of Kenya (ASSK) on Friday June 12th, 2015 held its annual - Institute and the Faculty of Actuaries (IFoA) sponsored, product design competition in Kenyatta University.
Mawazo Ruwa and Boniface Mokua, both from Maseno University presented their well-researched product in pricing a real estate option and went ahead to take position one, beating at least ten other highly competitive products from other students from universities present.
Motivated by the introduction of derivatives market in Kenya and increased investments in real estate, the two, using the Black-Scholes and the Samuelson – McKean Models, were able to engage the judges and the audience of students from more than ten universities into analysing their product and discussed its strengths, weakness, opportunities and possible threats.
Although consumer education and competition from the real estate market was an issue raised by every judge, they said possible modifications would be an option to make it a better product. The team recommended the Capital Market Authority to consider developing necessary regulations for the real estate and make the field appealing to all investors.
When asked about the oversupply in office space & apartments, they said, oversupply isn’t a current limitation, it is a projected scenario and they would like to major in the opportunities currently at hand as they model the projected results.
They took home the trophy and cash prizes courtesy of CiC Insurance, represented by Mukami Njeru and her Marketing partner, Zipporah Mutua.
Mukami Njeru of CiC Insurance and the secretary of The Actuarial Society of Kenya (TASK) talked on Innovation in business transformations, Technology and product developments as ways to improve business and increase penetration into the population. She also discussed an effective strategy of developing products as a process of Idea generation, Idea screening, Concept testing and development, Business analysis and pricing and finally Monitoring the performance what she referred from the Actuarial Control Cycle.
“Why spend so much time and energy in designing a product if 6 months later, every other company has copied it … What is the solution to this?” a question from the audience which was discussed widely over lunch hour seeking address from the appropriate authorities.
Also graced by the presence of;
Faventia Actuaries represented by Jackline Njeru.
The Strathmore University by Lucy Muthoni.
Leonard Korir of TechActuaries.
Catherine, (Lecturer and IFoA Student) of Karatina University.
George Odera of IRA.
Japheth Indakwa of Jubilee Insurance.
D. Washira of Intra Africa Assurance.
They engaged the students on individual and group levels in networking and offering a deep intuitive information on the Actuarial Profession.