The Kenya Union of Savings and Credit Co-operatives Ltd (Kuscco) has launched an insurance arm, Kuscco Mutual Assurance Ltd (KMAL), targeting at least Sh1 billion in annual premiums mostly from cooperative movement members.
Kuscco has secured approval from Insurance Regulatory Authority and wants to ride on sacco members as well as other Kenyans to offer long-term or life assurance business.
Antony Ogutu has been picked as the CEO.
Speaking after the launch Thursday, Mr Ogutu said the insurer will focus on lower to high end products based on sacco movement needs.
“We draw our strength from affiliation to cooperative movement and we want to have tailor-made products to attract the un-insured under-insured,” he said. The insurer becomes the 53rd in the country and has lined up products grouped under individual life, group insurance and deposit administration scheme. Some of the products are education plan, investment policy, term assurance and endowment policy as well as creditor protection cover.
The project has been in the pipeline since 2016 when Kuscco changed its by-laws to allow for creation of subsidiaries. The new entity was running as a risk management department, offering mutual protection against loan losses to 1,700 Sacco.
Kusco group national chairman George Maputo said innovative products will help the new insurer to tap more into the over 14 million-member cooperative movement. “The risk management fund has been underwriting claims to the tune of Sh900 million and it gives us a good foundation.
“Through innovative products tailored to the needs of cooperative movement, we hope to turn around the low level penetration and bring insurance inclusion to many Kenyans” said Mr Ogutu.