The insurance arms of lenders KCB and National Bank of Kenya have entered into a deal with Britam General Insurance to distribute health cover products targeted at Small and Medium Enterprises (SMEs) in Kenya.
In the deal, KCB Bancassurance Intermediary Ltd and NBK Bancassurance Intermediary Ltd will jointly distribute the newly launched KCB Flme Simba Health and Uzima Tele Insurance Plans.
The two products are designed to meet the needs of MSMEs by offering affordable premiums with a flexible payment plan. The initiative targets registered SMEs with a minimum of three workers offering them inpatient, outpatient, and last expense cover plans.
KCB Flme Simba Health Plan focuses on women entrepreneurs offering them comprehensive medical insurance meeting their unique health needs. Some of its features include the Diva Wellness Cover, Newborn Baby Expenses (for the first 90 days), Gynecological-related treatment, and Maternity Cover accompanied by the necessary ante-natal care.
On the other hand, the KCB Uzima Tele Health Insurance Plan is a specialised medical insurance designed for organisations that seek to safeguard the healthcare of their employees and dependents. The cover grants SMEs access to quality healthcare, including maternity care, vaccinations, and Last Expense benefits. The minimum number of employees that can be covered is three.
KCB Bancassurance Intermediary Ltd Managing Director Aggrey Mulumbi said: “there is need to expand access to best-in-class insurance products and offerings, especially for niche markets like SMEs. Through this partnership, we commit to being a one-stop financial services hub that is keen on offering innovative insurance products and outstanding customer service to all our customers across the board,” Mr. Mulumbi said.
The partnership is premised on the fact that despite their critical role in supporting economic growth, SMEs in Kenya continue to face many risks, one of them being a lack of adequate risk management strategies. The situation is further aggravated by the fact that SMEs face higher exposure to threats while commonly available insurance offerings are not adapted to the needs of SMEs.
Britam’s Group CEO Tom Gitogo noted that the resilience of SME businesses can only be enhanced through effective risk transfer and Bancassurance provides such a convenient platform to actualise this dream.
“Recognising the challenges faced by MSMEs, our partnership with KCB and National Bank of Kenya Bancassurance Intermediary Limited, is designed to cater to the unique needs of MSMEs, including women entrepreneurs, safeguarding their owner’s healthcare, that of their employees and their dependents,” said Mr Gitogo.
In Kenya, MSMEs constitute 98 percent of all businesses, creating about 30 percent of the jobs annually as well as contributing 3 percent of GDP growth.
However, underinsurance, fueled by a lack of knowledge on how best to use financial services, how insurance works, or what risks they should seek insurance coverage for has made it almost impossible for these SMEs to fully unlock their potential.
This collaboration with Britam General Insurance is the latest in KCB and NBK efforts to extend its value proposition to include emerging insurance market segments.
“This will create a mutually rewarding opportunity, giving the bank’s customers the choice of a diverse range of health insurance products and benefits,” said Mr George Odhiambo, NBK Managing Director.