Insurance firm Britam has rolled out a low-cost medical insurance cover with monthly premiums starting from Sh336 as it targets to tap into the country’s vast informal workforce.
The insurer, through its digital arm Britam Connect and in partnership with Minet Kenya, has rolled out the ‘Bima ya Wafanyikazi’ cover, with the minimum daily cost starting from about Sh11.
The product targets millions of domestic workers and informal sector players, many who have long depended on out-of-pocket spending for healthcare needs.
The cover offers different benefits including inpatient and outpatient services, maternity, dental and optical care, as well as last expense cover. Customers will access services through Britam’s network of more than 600 health facilities nationwide.
Those paying higher premiums than the starting level of Sh336 monthly will get enhanced benefits.
The product marks the latest move by insurers to penetrate Kenya’s underserved informal sector, where irregular incomes and lack of formal employment contracts have historically limited uptake of insurance products.
Kenya National Bureau of Statistics data showed the economy closed last year with 18.1 million jobs in the informal sector, being nearly 84 percent of the total 21.6 million jobs in the country.
Britam Connect chief executive Evah Kimani said the product reflects the company’s commitment to designing insurance solutions around the everyday realities of underserved communities.
“For many domestic and informal workers, there is very little room for life’s disruptions. An illness, injury or even a few days away from work can quickly place pressure on household finances. Bima Ya Wafanyikazi is anchored on holistic healthcare, bringing together outpatient and inpatient care, maternity, dental and optical benefits, as well as annual health check-ups,” she said.
The policy can be purchased directly by workers, their employers or organised worker groups, which is a model Britam Connect expects will widen access and ease premium payments.
Minet Kenya deputy director for commercial, Gideon Bii, said the partnership will ride on the broker’s distribution network and Britam’s underwriting capacity.
“We have combined our strengths to create a solution that not only expands access to affordable healthcare, but also advances financial inclusion by protecting workers from the financial impact of unexpected medical expenses,” he said.
Kenya’s insurance penetration remains low at about 2.4 percent, compared to the world’s average of about seven percent and markets such as South Africa where it exceeds 11 percent.
Industry players are increasingly turning to microinsurance and digital distribution channels to grow uptake, especially in the informal sector.
