Kenyan insurers pivot to flexible models for informal sector

Kenyan insurance companies are redesigning their products and distribution models to better serve the country’s large informal sector, which accounts for approximately 18.1 million jobs. This shift responds to the inadequacy of traditional annual premium models for workers with irregular incomes. Data indicates that policy surrenders rose to Sh11.5 billion by September 2024, and nearly 44.1% of insurance users missed claims by November 2024 due to premium defaults.

Insurers such as Britam, CIC, and Jubilee are introducing flexible payment options, including monthly, quarterly, and daily plans. For example, Britam has rolled out products with premiums as low as Sh11 per day, while Jubilee Health Insurance has partnered with insurtech firm bolttech to distribute policies through digital platforms. These innovations, including embedded and pay-as-you-go insurance, aim to align coverage with the financial life cycles of small businesses, gig workers, and low-income households.