A subscriber holds a Telkom SIM card. FILE PHOTO | NMG Telkom Kenya has inked a deal with Britam Holdings to launch a mobile-based insurance product targeting small-scale traders in the country.
The cover, dubbed Life Bila Noma, will see customers benefit from telecom and insurance bundles that include data, voice minutes, SMS, personal accident and last-expense insurance.
“With Life Bila Noma, customers will get their medical expenses covered in case of an accident and in an unfortunate loss of life, Britam will provide a funeral cover.
“As part of our strategy towards building a customer-centric organisation that offers affordable and accessible everyday financial solutions, we are focusing on strategic partnerships that give us access to the underserved markets,” said Britam’s Partnerships and Digital Director, Evah Kimani on Thursday.
Customers can subscribe to either of two options: Life 200 and Life 300.
Under Life 200, subscribers pay Sh200 monthly for personal accident cover of up to Sh20,000 and last expense of a similar amount. A customer will also get 1GB of data, 25 minutes on any network, 100 on-net minutes, ad 25 SMSes.
Customers on Life 300 pay Sh300 monthly for personal accidents and last expense cover of Sh20,000 each, 1GB data, 50 off-net minutes, 100 on-net minutes, and 50 SMS.
“Apart from looking for the next great competitive offer that will provide our consumers with more value for their communication and data demands, we are also aware of the crucial role that mobile innovation plays in increasing insurance penetration levels amongst key contributors to the economy such as the mama mboga and boda boda riders,” said Telkom Kenya marketing director Eric Achola.
Insurance penetration in Kenya dropped to 2.34 percent in 2019 –the lowest in 15 years– on the back of price undercutting in an industry where players face increasingly tough competition.
The reach hit its peak in 2013, when it stood at 3.44 percent, but the rate has been declining in the last five years with a vast population of low-income earners as well as micro and small businesses generally not covered.
Industry players note that the number of insurable risks in the market is going up yet premium growth is slowing due to price undercutting and fraud—challenges which partly exist due to low use of technology.The Life Bila Noma bundle can be purchased via USSD *444#, using a Telkom mobile line. botieno@ke.nationmedia.com