A Kenyan insurtech company has been making waves in the insurance market by offering premiums of less than $2 for the past six years. Their recent collaboration with a pay-as-you-go financing startup represents a significant milestone for them. By integrating microinsurance into the smartphone products of the financing startup, they are aiming to address the low insurance penetration in Kenya through a tech-driven strategy.
The insurtech company shared that their embedded insurance service on the smartphones has already provided coverage to over one million customers in Kenya. This accomplishment follows the financing startup’s sale of more than 1.5 million smartphones, which made up 20% of all new devices sold in the country in 2024, according to data from the Communications Authority of Kenya (CA).
The co-founder of the insurtech company emphasized that their goal is to make insurance accessible, affordable, and impactful. By incorporating health insurance into the smartphones, they have made it easier for underserved families to access health coverage in a straightforward manner.
Traditional insurance in Kenya has faced challenges in gaining popularity due to high premiums, complex processes for signing up, and slow claims procedures, leaving millions without coverage. The expansion of the insurtech company into low-budget smartphones aims to reach the underserved market, particularly low-income earners and rural residents, by providing free inpatient insurance cover without the hassle of traditional sign-up processes.
For the financing startup and its backers, this collaboration offers an opportunity to offer not only phones but also financial solutions like insurance and affordable credit. This partnership could potentially become one of the most successful in Kenya’s tech industry.
The general manager of the financing startup mentioned that the insurance product was initially tested as coverage for their sales agents before being introduced to customers. The bundling model has proven effective, with 75% of customers previously being uninsured. In 2024, half of the policyholders used their payouts for medical expenses, while others reinvested the funds in businesses or household needs.
The integration of insurance into everyday financial tools could be the key to increasing insurance uptake in Kenya. Several tech startups in the country have been incorporating insurance into their offerings to encourage more people to get insured.