APA insurance has launched a comprehensive motor insurance cover that allows for payment of premiums to be made in instalments.
The firm said the cover, dubbed named Bima Bamba, which allows clients to spread the cost over the course of a year, is meant to ease the burden on car owners.
“Bima Bamba motor cover clients have the opportunity to pay their full third party premium, plus the first payment of the comprehensive cover, at the outset and then the balance in eleven equal monthly payments,” said the underwriter in a statement.
“This avoids the cost of annual car insurance putting strain, all at the same time, on other areas of client’s budgets and puts them in a position to manage their money well.”
The country has been struggling with a low insurance penetration rate, with data from the Insurance Regulatory Authority (IRA) showing that as at the end of 2020 insurance penetration stood at 2.17 percent against the global 7.4 percent average. Motor vehicle insurance accounts for a significant share of the existing underwriting business, given that it is compulsory for all vehicle plying Kenyan roads to be insured.
The insurance industry tends to stay traditional and is slow to change, however, new trends have been impacting the insurance marketplace, creating fierce competition.
Underwriters have therefore been looking at instalment premiums and digital payment options in order to attract more buyers of their products.
In December, Heritage Insurance Kenya launched a digital platform to enable customers buy comprehensive car insurance policies on their phones, computers or tablets, and make instalment payments for their premiums.
The platform eliminates time-consuming paperwork by providing customers with a quotation and motor cover insurance sticker within 15 minutes of signing up, after they provide an estimated car value, select the motor cover of their choice, and fill in the required information.