Kenya’s largest bank by asset, Kenya Commercial Bank (KCB) has partnered with Liberty Life Assurance Kenya to offer an education savings plan dubbed KCB ELIMISHA, which targets to allow low income earners to purchase insurance for as low as 500 shillings.
The joined venture which banks on KCB’s large customer base targets to reach over 10 million people and increase insurance industry penetration from the current 3.5 per cent , which is lower than the world average of 6.28 per cent.
Speaking during the event the regulators representative, Agnes Ndirangu, commended on the efforts made in research attributing to research as a key factor in any products success.
“People can put products in the market but fail for lack of research.”
said Insurance regulatory authority’s Chief Technical Manager Agnes Ndirangu.
She also attributed the growth in the sector where premiums grew to 2.7 billion to agents saying they contributed more than 50 per cent.
In the joined venture KCB is expected to provide over 14000 agents in the role out of this products including KCB stuff and over 1000 sales representatives, together with other sales campaign.
Kenya Commercial Bank (KCB) CEO Mr Joshua Oigara however noted that over 50 per cent of income in Kenyan families is spent on Education.
“This collaboration will enable KCB to continue serving its client in various business segments as well as play a crucial role in contributing towards securing the future of our children through comprehensive product positioning.”
He also added that the policy has terms ranging from 5 to 20 years with a sum assured option ranging from 50,000 shillings to 40 million and provides flexibility where the policy holder could opt to increase or decrease the sum assured.
Liberty Life Assurance Managing director Abel Munda noted that increased support for education is key in achieving the sustainable development goal agenda four.
This launch comes at a time when the Kenyan insurance sector has been dogged with claims of fraud and challenges of cyber security.