By overcoming the cash payment conundrum, mobile money is on the move in Africa, but the rising tide is not lifting all boats. Ensuring the masses is still a hard nut to crack. In Kenya alone, nearly a 3rd of the population survives on less than $1.90 a day. With the majority of the population living in rural areas, insurance remains mystified to the masses.
The low insurance penetration can be attributed to the poor savings culture and the general nonchalant attitude towards insurance. There’s a lot of work to be done to educate Kenyan consumers about the importance of insurance. Most Kenyans feel shortchanged by the claims experience and tend to consume products that are required to meet compliance needs.
Although, efforts have been made by Insurtechs in Kenya to challenge the existing industry landscape.
The journey is a long way, and the pace has been slow but there are a few mavericks challenging the status quo with uptick in innovative insurance solutions & platforms.
Still, there is a grave need for think tanks, hubs and funding focused on improving access to insurance for Kenyans. Traditional insurance companies need to work with the existing (active) start-up community in Kenya to develop innovation focused on insurance service delivery.
In the absence of collaboration from insurance companies who are governed by strict re– insurance treaties and slow adoption of technology from the regulatory authority there will be very low incentives for people to create the required solution to existing problems of access, affordability, and education.
With low incomes, Kenyans feel a greater need to safeguard their livelihoods and stakeholders and the insurance industry remains challenged to educate the masses on how it can do just that. This means insurance penetration will continue to be low.
References:
data.worldbank.org (n.d.). Poverty headcount ration at national poverty lines (% of population) – Kenya | Data. [online] Available at http://data.worldbank.org/indicator/SI.POV.NAHC?locations=KE
