CIC Insurance Group has partnered with Philippines’ largest microinsurance provider as it ramps up low-cost covers to strengthen a segment it pioneered 26 years ago.
The insurer, which secured a licence for a micro-insurance subsidiary in October last year, has partnered with CARD Mutual Benefit Association (CARD MBA), becoming the latest underwriter to turn to Asia for expertise in scaling uptake of covers targeting the informal sector.
CIC first introduced a micro-insurance product in 2000 in partnership with Vision Fund Kenya (then known as Kenya Agency for the Development of Enterprise and Technology) and strengthened its offering in 2007 under the ‘Bima ya Jamii’ package. However, the segment lost momentum over time.
The insurer is now seeking to regain ground and challenge rivals such as Britam and APA, which have since established dedicated micro-insurance units.
‘The focus is to develop relevant products that can be afforded by the majority of Kenyans. This reflects our conviction that the future of insurance will not be defined by how we serve those who have access but how we effectively reach those who have been historically left behind,’ said Patrick Nyaga, chief executive at CIC Insurance Group.
CIC Impact, which is the CIC’s micro-insurance subsidiary, is targeting to expand its product lines in bid to capture Kenya’s informal sector which supports the majority of jobs in the economy.
CARD MBA will support CIC in areas such as building and scaling up micro-insurance products, strengthening governance, actuarial sustainability and risk management, as well as enhancing IT and management information systems.
The Philippines firm is the largest mutual micro-insurer in the South East Asia country where it insures more than 25 million individuals, giving it 83 percent market share. The firm currently settles claims within four hours.
‘We have to remember that we are not selling a product, we are strengthening the resilience of communities. We are here to offer expertise in areas such as technology and running a claims management system that can settle claims within hours,’ said Jaime Alip, founder and chairman emeritus at CARD.
Most of Kenya’s insurance products have resonated largely with the formal sector, leaving the insurance penetration in the economy at below three percent.
‘If we are to close this protection gap, we must go beyond conventional models and develop insurance solutions that are simple, affordable, relevant, and accessible to the people. This is the greatest opportunity before us as we partner with the best in class,’ said Nelson Kuria, chairman at CIC Group.