New regulations seen hurting micro-insurance

Mr Ng’aru says there is a need to review the micro-insurance rules given that non-insurance players are also the segment.

“Micro insurance operates on a different plane and involves various players such as MFIs, which requires a different set of regulations akin to the capital market regulations where players undertaking asset management are regulated by the Capital Markets Authority (CMA),” said Mr Ng’aru.

For firms offering micro insurance, strategic partnership is critical as it allows convergence for competitive advantage.

For instance, CIC Insurance which is pioneering micro-insurance offers Bima ya Jamii for an annual premium Sh3, 650 for medical, personal accident and funeral covers.

Wider reach

The medical cover which is offered in partnership with the National Hospital Insurance Fund (NHIF) allows beneficiaries to seek treatment in public and selected private hospitals.

According to Mr Kuria, the partnership with NHIF allows for cost containment “which is critical to effective service delivery.”

Other partners critical to increasing uptake of micro-insurance are cooperatives, churches, self help and social welfare groups.

The focus on these partnerships allows a wider reach that provides high volumes.