Firms to launch insurance product for low-income earners

Insurance firms are targeting mobile users with new products. FILE PHOTO | NMG
Insurance firms are targeting mobile users with new products. FILE PHOTO | NMG 

Capex Life Assurance and a local insurance technology (InsurTech) start-up GrassRoot Bima will Wednesday launch a joint life insurance product for low-income earners.

The cover will be accessible through a mobile phone application platform called WazInsure. The two firms want to raise penetration rate in the country through the product dubbed ‘Maisha Enhanced Cover’.

Kenya’s insurance penetration currently stands at just 2.9 per cent.

“The WazInsure App can be downloaded from Google Playstore. Kenyans will pay as low as Sh600 annually and will receive Sh25,000 in case of a death in their families. Other rates are Sh1,250 and Sh2,400 for a loss of up to Sh50,000 and Sh100,000 respectively,” they said in a joint statement yesterday.

The WazInsure app is designed for underwriters to distribute and administer insurance policies online and is integrated with a mobile app for customers to access products.

The move is expected to cut underwriters’ costs associated with traditional insurance management.

In April, CIC Life Insurance introduced a CIC Bima Credo service, which enables clients to pay for their life insurance premiums in affordable amounts and as part of their daily mobile airtime usage.

Through the service, clients are able to buy life insurance cover when they load airtime on their mobile phone.

A number of other firms have launched mobile-based medical covers for the nearly virgin market segment.