Kenya's insurance industry is evolving rapidly to cater to the country’s vast informal sector, which accounts for nearly 84% of total employment. Conventional insurance products, often requiring fixed, regular premiums, have struggled to meet the needs of workers with variable daily incomes.

To bridge this gap, insurers like CIC, Britam, and Jubilee are launching innovative products that allow smaller, flexible payments and leverage digital platforms already familiar to informal workers.

Key Strategies to Expand Coverage

  • Flexible Premiums: Products now enable pay-as-you-go options, such as Britam’s microinsurance plans with premiums as low as Sh11 per day targeting gig workers and low-income households.
  • Embedded Insurance: Insurance coverage is integrated into everyday transactions, including mobile airtime purchases, agricultural inputs, and microfinance loans, simplifying access and reducing costs.
  • Digital Distribution: Partnerships with insurtech firms and platforms like banks, petrol stations, and digital marketplaces enhance reach. Jubilee Health Insurance collaborates with Singapore-based bolttech to distribute health policies through such channels.

Data from the Insurance Regulatory Authority indicates that in 2023 alone, 99 new or revamped insurance products were introduced, many tailored for the informal segment, with 28 additional products launched in early 2024. This surge reflects the sector’s potential, given Kenya’s 18.1 million informal jobs reported by the Kenya National Bureau of Statistics.

Industry Perspectives

Nelson Kuria, CIC Group chairman, emphasized the need to move beyond traditional insurance models to close the protection gap by offering affordable, simple, and accessible solutions.

Jubilee Health CEO Njeri Jomo highlighted that leveraging trusted platforms accelerates scaling and innovation, extending health coverage to underserved communities.

Growing Role of Insurtech

The rise of microinsurance providers and insurtech firms like CarePay, PULA, Lami, and Turaco is intensifying competition and innovation. Turaco’s ASA LifeCare product, for example, embeds insurance within microfinance loans, lowering barriers for informal sector workers.

According to a recent AfricInvest report, Kenyan insurtech startups have attracted over Sh8.5 billion ($66 million) in venture funding over five years, signaling strong investor confidence in the informal sector’s insurance potential.

With insurance penetration in Kenya still below 3%, these product innovations and partnerships represent critical steps toward expanding financial inclusion and protection for millions of informal workers nationwide.