High insurance premiums pose threat to micro insurance

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By Ronald Owili

High insurance premiums and mistrust still poses a threat to the uptake of micro insurance in the country.

Nonetheless, GrassRoots Bima through its WazInsure platform has developed an online tool to enable consumers access products from licensed insurance companies.

Despite concerted efforts by policy makers and insurance companies to entice a majority of uninsured Kenyans into buying products, insurance penetration has remained low at just 2.8 percent and these are the reasons why this is the case.

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A majority of the uninsured are in rural areas and informal settlements including micro ventures.

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A case in point is boda boda industry which has 1.2 million riders where only 10 percent of them insurance covers.

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GrassRoots Bima is seeking to bridge mistrust between the underwriters and policyholders by enabling access of insurance products through a platform.

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Badiah is banking on the platform to increase micro-insurance uptake supported by high mobile adoption where Kenya currently boasts of 37 million subscribers.

The firm has also collaborated with Capex Life to list its maisha cover on the platform.

GrassRoots is targeting to work with most insurance firms.

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