Partnerships key for Microinsurance growth, AKI study reveals

The Association of Kenya Insurers (AKI) released a survey on the state of microinsurance in Kenya.

The survey carried out in 2023, found that the number of micro insurance products in the market increased to more than 55 compared to 32 in 2015. Health insurance, personal accident, and last expense were noted to be the most popular microinsurance products demanded by consumers and that have the potential to grow and cover a wider section of the population. The study also emphasised the need for simplification of products and the simplification of the language used to communicate about these products.

“Micro insurance is a powerful tool that protects low-income individuals from financial risks and helps break the cycle of poverty”, noted Mr. Tom Gichuhi, AKI Executive Director during the survey launch.

He further noted that the survey presented strong evidence of the role partnerships with a wider variety of institutions will play. “For microinsurance to work, we need to partner with a wider variety of institutions including development partners, insuretechs and technology partners, the Government and other business associations and aggregator groups such as SACCOs, Churches and others. I am glad to note that the Microinsurance regulations allow for insurance distributors to be non-insurance players”.

The insurance regulator, IRA, in 2020 issued the Microinsurance Regulations. The regulations require that microinsurance underwriters register a separate business away from the conventional insurance. The regulations also clearly define the parameters of a micro insurance product to be not longer than twelve months (renewable), premium should not exceed Ksh40 per day and the sum assured should not exceed Ksh500,000. The Regulations also allow for micro-insurers to appoint intermediaries who are not required to register with the IRA.

Other key issues that came up from the survey include the need to leverage on digital channels to distribute micro insurance and the need to have price flexibility on premiums. These two factors will increase access and affordability to insurance products.

The survey, conducted by research firm Ipsos, engaged a wide variety of stakeholders including insurers, potential and current customers, insurance intermediaries, development partners and insuretechs.

The detailed report is available on the AKI Website

The State of Microinsurance in Kenya


July 6th, 2023


Hazel Kingori


AKI, Microinsuarnce, Inclusive insurance, development partners, government