KCB and National Bank of Kenya (NBK) have joined forces with Britam General Insurance to provide affordable health insurance products specifically tailored for Small and Medium Enterprises (SMEs) across the country. The partnership aims to address the lack of adequate risk management strategies among SMEs, which hinders their growth and exposes them to various risks.
Under the agreement, KCB Bancassurance Intermediary Limited and National Bank of Kenya Bancassurance Intermediary Limited will collaborate in distributing the newly launched KCB Flme Simba Health and Uzima Tele Insurance Plans. These insurance plans have been designed to cater to the unique needs of SMEs and offer affordable premiums with flexible payment options. The target market for these plans includes registered companies with a minimum of three employees.
The KCB Flme Simba Health Plan specifically targets women entrepreneurs and provides them with comprehensive medical solutions to meet their specific health needs. The plan includes features such as the Diva Wellness Cover, coverage for newborn baby expenses for the first 90 days, gynecological-related treatments, and maternity cover with necessary ante-natal care.
The KCB Uzima Tele Health Insurance Plan, on the other hand, is designed for organizations seeking to protect the healthcare of their employees and dependents in a cost-effective manner. This plan grants SMEs access to quality healthcare, including maternity care, vaccinations, and Last Expense benefits. A minimum of three employees can be covered under this plan.
Mr. Aggrey Mulumbi, Managing Director of KCB Bancassurance Intermediary Limited, emphasized the importance of expanding access to high-quality insurance products for niche markets like SMEs. He stated, “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.”
The collaboration between KCB, NBK, and Britam General Insurance acknowledges the challenges faced by SMEs in Kenya. Despite playing a crucial role in supporting economic growth, SMEs often lack adequate risk management strategies. Moreover, commonly available insurance offerings are not tailored to their specific needs. By offering affordable and accessible healthcare options, this partnership aims to alleviate the burden on SMEs and enable them to focus on growing their businesses.
Mr. Tom Gitogo, Britam’s Group Managing Director and CEO, emphasized the importance of effective risk transfer for enhancing the resilience of SME businesses. He stated, “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. 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, contribute 3% of GDP growth, and create 30% of the jobs annually. However, underinsurance, coupled with a lack of knowledge about financial services and insurance, has hindered their potential for growth. This collaboration between KCB, NBK, and Britam General Insurance represents their efforts to address the underinsurance issue and extend their value proposition to emerging insurance market segments.
Mr. George Odhiambo, NBK Managing Director, expressed his optimism about the partnership, stating, “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.”
By joining forces, KCB, NBK, and Britam General Insurance aim to empower SMEs with affordable health insurance options and contribute to their overall growth and resilience. This partnership marks a significant step forward in addressing the unique needs and challenges faced by SMEs in Kenya’s business landscape.
