KCB and National Bank of Kenya (NBK) have entered into an agreement with Britam General Insurance to distribute affordable health insurance products targeted at Small and Medium Enterprises (SMEs) across the country.
In the deal, KCB Bancassurance Intermediary Limited and National Bank of Kenya Bancassurance Intermediary Limited will jointly distribute the newly launched KCB Flme Simba Health and Uzima Tele Insurance Plans.
The two products are specifically designed to meet the needs of MSMEs by offering affordable premiums with a flexible payment plan, targeting registered companies with a minimum of 3 employees. They both have three benefits: inpatient, outpatient, and last expense.
KCB Flme Simba Health Plan is targeted at women entrepreneurs and offers them comprehensive medical solutions suitable to meet their unique health needs. Some of its features include the Diva Wellness Cover, Newborn Baby Expenses (For the first 90 days), Gynecological-related treatment, and Maternity Cover accompanied by the necessary ante-natal care.
On the other hand, the KCB Uzima Tele Health Insurance Plan is a specialized medical insurance solution designed for organizations that seek to affordably safeguard the healthcare of their employees and dependents. The cover grants SMEs access to quality healthcare, including maternity care, vaccinations, and Last Expense benefits. The minimum number of employees that can be covered is three.
“There is need to expand access to best-in-class insurance products and offerings, especially for niche markets like SMEs. Through this partnership, we commit to be a one-stop financial services hub that is keen on offering innovative insurance products and outstanding customer service to all our customers across the board,” KCB Bancassurance Intermediary Limited Managing Director Mr. Mulumbi said.
The partnership is premised on the fact that despite their critical role in supporting economic growth, SMEs in Kenya continue to face many risks, one of them being a lack of adequate risk management strategies. The situation is further aggravated by the fact that SMEs face higher exposure to threats while commonly available insurance offerings are not adapted to the needs of SMEs.
On his part, Mr.Tom Gitogo, Britam’s Group Managing Director and CEO noted that the resilience of SME businesses can only be enhanced through effective risk transfer and Bancassurance provides such a convenient platform to actualize this dream.
“Recognizing the challenges faced by MSMEs, our partnership with KCB and National Bank of Kenya Bancassurance Intermediary Limited, is designed to cater to the unique needs of MSMEs, including women entrepreneurs, safeguarding their owner’s healthcare, that of their employees and their dependents,” said Mr. Gitogo.
“By providing affordable and accessible healthcare options, we aim to alleviate the burden on MSMEs, enabling them to focus on what they do best- growing their businesses.”
In Kenya, MSMEs constitute 98% of all businesses in Kenya, create 30% of the jobs annually as well as contribute 3% of GDP growth. However, underinsurance, fueled by a lack of knowledge on how best to use financial services, how insurance works, or what risks they should seek insurance coverage for has made it almost impossible for these SMEs to fully unlock their potential.
This collaboration with Britam General Insurance is the latest in KCB and NBK efforts to extend its value proposition to include emerging insurance market segments.
“This will create a mutually rewarding opportunity, giving the bank’s customers the choice of a diverse range of health insurance products and benefits. Our reputation for building a simplified in-path and tailored insurance experience through embedded insurance will play a great role in raising awareness of the value of insurance protection, especially for our SME customers,” said Mr. George Odhiambo, NBK Managing Director.