Millions of Kenyans working in the informal sector could soon access insurance cover for less than Ksh3,000 a year after CIC Insurance Group launched a new microinsurance subsidiary targeting low- and middle-income earners, farmers, small businesses and cooperatives.
The insurer on Thursday unveiled CIC Impact, a dedicated microinsurance company designed to bridge Kenya's low insurance uptake by offering affordable policies for groups that have traditionally been excluded from conventional insurance.
The move comes at a time when Kenya's insurance penetration remains at just 2.3 per cent, with most policyholders coming from the formal sector despite informal workers accounting for an estimated 83 per cent of the country's workforce.
Speaking during the launch, CIC Insurance Group Managing Director and CEO Patrick Nyaga said the company was seeking to make insurance affordable for millions of Kenyans who have long viewed it as out of reach.
"Through CIC Impact, we are expanding access to insurance by offering affordable, accessible solutions tailored to underserved groups, particularly those in the informal sector. With annual premiums starting below Ksh3,000, more Kenyans can protect their businesses, livelihoods, and families."
Nyaga added that demand for low-cost insurance had been growing steadily over the past six years, signalling increasing trust in microinsurance products.
According to the insurer, customers will be able to access cover for micro, small and medium-sized enterprises (MSMEs), funeral expenses, student personal accidents, pensions, hospital cash benefits, agriculture and livestock, as well as personal accident insurance for boda boda riders, security guards and other blue-collar workers.
CIC Group Chairman Dr Nelson Kuria said the new subsidiary builds on more than a decade of offering microinsurance products but will now operate with a dedicated focus on developing simpler products and expanding coverage.
"We are happy to launch CIC Impact because it responds to sector advancements. While CIC has provided microinsurance solutions for more than 10 years, the new subsidiary gives the business dedicated focus to develop simpler, more innovative products and expand access to insurance for more Kenyans."
"Its main goal is to reach the informal sector, which currently employs about 83% of Kenyans, and who are primarily not covered by traditional insurance."
To strengthen its new business, CIC also signed a partnership agreement with the Philippines' CARD Mutual Benefit Association (CARD MBA), which specialises in providing insurance to low-income communities.
CARD MRI Founder and Chairman Emeritus Dr Jaime Aristotle Alip said the collaboration would focus on improving products, staff capacity and technology to increase insurance access.
"Our mission is not only microinsurance but eradicating poverty. That is why we are sharing knowledge to strengthen products, improve service delivery, build staff capacity and use technology to reach more people with simple, affordable insurance solutions that will improve lives."
Microinsurance enables customers to pay relatively small premiums in exchange for protection against specific risks, making insurance more affordable than conventional policies. Products are typically distributed through digital platforms, SACCOs, employers, traders and other community-based channels to lower costs and reach underserved populations.