Micro insurance underwriters in the Kenyan market increased in number from 11 in 2015 to 18 in 2022, implying potential for growth. According to findings of a study done by IPOS on behalf of Association of Kenya Insurers (AKI), Micro insurance products available to consumers have increased both in numbers, and types.
While a few have been ‘dropped’, many of those left standing have mainly gone through restructuring and rebranding.
Micro insurance penetration still low despite its affordability
Despite micro insurance differing from conventional insurance in that they are more readily available, more affordable and simple, penetration is still low.
Though the industry faces a number of barriers, industry experts still believe it has potential for growth.
This report by Association of Kenya Insurers mentions that even with existing barriers, there are observable efforts to grow the industry though the full impact is yet to be realised.
For products that have been in the Kenya market space for long, some improvements have been done on them. However, more recent products have not experienced any change yet.
A micro cover that started off as a last expense now includes health cover to farmers and stands out as one of those micro insurance products that have undergone enhancements.
A health product which was initially a very basic medical cover has increased in number of benefits such as maternity and specialists.
Credit life which was previously a standalone, can now also be offered as part of other products • It has optional modules covering aspects such as like Health, Property, Last expense etc. ‒ One can wish to choose what to pay for within this policy.
Last Expense insurance cover now includes parents, parents in laws in addition to just previous cover of nuclear family only. In the Health cover, Personal Accident, & Last Expense are the most popular micro insurance products demanded, but most have further potential for growth.
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