Britak unveils new microinsurance product cover in Kenya
Business Daily Africa, 21 May 2010
British American Insurance (Britak) has launched a new personal accident insurance product whose premiums will be paid through the recently launched M-Kesho Account, a new mobile bank account product launched by Equity Bank and Safaricom.
The new product, to cost Sh530 ($6.5) per year or staggered monthly or weekly payments, is a microinsurance product that is likely to increase the pace of innovation in the insurance industry, which is struggling to increase penetration.
The product’s features like low premium, low monthly payments, application and premium payment over the mobile phone combines most of the qualities that have been identified as critical in the success of microinsurance product of its nature.
A study commissioned by the Association of Kenya Insurers (AKI) in 2008 identified the need for low cost insurance products as a major possible driver of insurance services’ growth in Kenya. As a result, several insurance companies have come up with low cost insurance products that have had mixed performance in the economy.
But insurance penetration in Kenya is dismal, with general insurance averaging 1.7 per cent according to the AKI data of 2008 while combined general and life insurance have penetration of 2.63 per cent.
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