Britam has launched a new lifetime cover as the push by insurers in Kenya to deepen a market long constrained by low uptake and limited awareness hots up.

Britam Holdings Whole Life Insurance Plan is modelled to run for the policyholder’s lifetime, marking a shift from traditional term offerings that expire after a fixed period. The benefit payable to beneficiaries rises by 3 per cent annually, while payouts on death, disability and critical illness are structured to be tax-free.

The product targets a growing segment of middle-income earners seeking long-term financial security and structured wealth transfer. It also integrates estate planning features through Britam’s trust services, allowing policyholders to appoint a trustee and define how and when benefits are distributed. This reflects a broader shift by insurers towards bundled solutions that combine protection, savings and succession planning.

“The Britam Whole Life Insurance Plan reflects our commitment to offering solutions that go beyond basic protection. It is designed to help customers leave something meaningful for the people they love, with cover that grows over time and lasts a lifetime,” said Britam Group Managing Director and CEO, Tom Gitogo. 

Britam’s latest offering joins a competitive field of similar long-term life and savings products that has seen insurers such as Old Mutual Kenya, Jubilee Insurance, Sanlam Kenya and CIC Insurance Group, expand their life assurance portfolios in recent years. 

A quick survey shows that many are giving their customers unit-linked policies, endowment plans and whole life products in a strategic move to win and secure long-term clients.

The industry, however, continues to grapple with structurally low insurance penetration with coverage in Kenya at below 3 per cent of GDP according to industry estimates, far behind more developed markets. The gap reflects a mix of economic and behavioural factors.

Low and irregular incomes limit households’ ability to commit to long-term premiums. A large informal sector makes distribution difficult and reduces visibility of potential clients. At the same time, insurance is often perceived as complex, expensive or non-essential, particularly when compared with more pressing financial needs in families.

Trust is another constraint facing the industry. Past disputes over claims and policy terms have eroded confidence in parts of the market. At the same time, financial literacy levels remain uneven, limiting understanding of long-term risk planning and insurance benefits.

For insurers, the challenge has been to design products that balance affordability with value while simplifying onboarding and claims processes. Digital channels and bancassurance partnerships have helped expand reach, but conversion rates remain modest.

Britam’s latest offering reflects an industry-wide push to reposition life insurance as a tool for wealth preservation rather than a discretionary expense. Flexible premium structures, starting from about KSh3,000 a month or as a single payment, are aimed at widening access, while optional riders such as critical illness and funeral cover respond to immediate household risks.

The broader bet is that rising incomes, urbanisation and growing awareness of financial planning will gradually shore up demand. For now, however, insurers face a familiar test: turning product innovation into sustained uptake in a market that has historically remained underinsured.

Key takeaways: Features of Britam’s new cover 

• Lifetime cover: The policy provides protection for the insured’s entire life, unlike term insurance which expires after a fixed period.
• Inflation-linked benefits: Payouts to beneficiaries grow by 3% annually, helping preserve value over time.
• Tax-free payouts: Benefits across death, disability and critical illness are structured to be tax-exempt.
• Integrated trust and estate planning: Through Britam Holdings Trust, policyholders can structure how benefits are managed and distributed to beneficiaries.
• Flexible and customisable structure: Customers can choose payment terms (monthly or lump sum) and add riders such as critical illness, disability and funeral cover for broader protection.

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