Insurance firm Britam has inked a deal with digital insurance platform mTek, to offer mobile-enabled business protection to Micro, Small, and Medium Enterprises (MSMEs) against fire and burglary.
The cover, dubbed Britam Biashara, will also protect operators against loss of income in the event of business interruption due to hospitalisation or permanent disability caused by an accident.
Under the policy, business owners will have the leeway to choose either basic property cover with an additional personal accident cover, interruption due to hospitalisation cover, or even both depending on their requirements and affordability.
The programme seeks to net over 100,000 MSMEs spread across the country, who will access the service through mTek’s mobile application.
“By [offering insurance to] the informal retail sector, we become business enablers of MSMEs. This is by improving their risk profile, which then enables them to attract financial credit and expand their value chains,” said Britam Digital and Partnership Director Evah Kimani.
mTek chief executive Bente Krogmann noted that collaboration amongst insurance sector players in the development of customised products is key to increasing penetration among the uninsured.
“Small business owners can enjoy the seamless purchase of Britam Biashara and claims processing via the mTek platform which delivers convenience thus saving business people time to concentrate on more pressing issues,” stated Krogmann.
A ‘state of SME insurance in Kenya’ report published in 2021 indicated that a bulk of small businesses rely on alternative coping mechanisms other than insurance for protection.
These include owners’ savings and goodwill from associates as fallback plans during times of crisis.
Generally, while insurance exists to mitigate unforeseen risks, uptake in the country has remained low even as the economy expands.
The industry trends are however experiencing a shift in recent months thanks to technology adoption and digitisation of the sector which has seen a rapid improvement in customer service.
Additionally, technology has helped in minimising fraud which is a big headache for sector players.