NAIROBI, Kenya, July 6 – The number of micro-insurance products in the Kenyan market has increased by 41.8 percent to 55 this year as demand for affordable insurance policies grows.
Data from the Association of Kenya Insurers (AKI) shows that number improved from 32 in 2015.
Health insurance, personal accidents, and last expenses were the most popular micro-insurance products among consumers.
“Micro insurance is a powerful tool that protects low-income individuals from financial risks and helps break the cycle of poverty,” AKI Executive Director Tom Gichuhi said.
Under the Microinsurance Regulations, microinsurance products are defined as not longer than twelve months (renewable), at least Sh40 in premium collection per day, and a sum assured of less than Sh500,000.
Likewise, microinsurance underwriters are required to register separate businesses from conventional insurance.
The study also emphasised the need for simplification of products and the language used to communicate about these products.
“For microinsurance to work, we need to partner with a wider variety of institutions including development partners, insuretechs and technology partners, the Government and other business associations and aggregator groups such as SACCOs, Churches and others.”
Other key issues that came up in the survey include the need to leverage digital channels to distribute micro-insurance and the need to have price flexibility on premiums.
These two factors will increase access to and affordability of insurance products.
The survey, which was conducted by research firm Ipsos early this year, engaged a wide variety of stakeholders, including insurers, potential and current customers, insurance intermediaries, development partners, and insuretechs.
