Kenya’s insurance industry has long seen low adoption numbers of around 2.3%. Many Kenyans either don’t see the need for insurance or see it as being too expensive and complicated to access. But Safaricom, through its financial services arm, is looking to change that narrative.
At the recent Safaricom Decode 3.0 event, Chief Financial Services Officer Esther Waititu revealed how the company is using technology and strategic partnerships to enable insurance accessibility. Through Safaricom Insurance Agency Limited (SIAL), the telco has partnered with multiple providers to create tailored solutions. So far, these efforts have resulted in over 117,000 policies issued. These are valued at Ksh 975 million.
This initiative aligns with M-Pesa’s broader mission of financial inclusion. For 18 years, M-PESA has evolved beyond mobile money transactions to offering savings, credit, wealth management and now, insurance solutions. M-Pesa has over over 34 million customers and plays a key role in Kenya’s digital finance sector. Th service is not available in Kenya only as the company recently revealed that it has 70 million customers across the 160 countries it is available in.
The M-Pesa app is one innovations driving this growth. It has mini-apps that provide insurance solutions for health, marine cargo and devices. For example, importers can now get instant marine cargo insurance, make payments seamlessly and receive real-time updates. All this is possible within the app. For businesses and individuals who are already using M-Pesa, this level of convenience is very beneficial.
Going forward, Safaricom is betting big on new technologies including AI, IoT and blockchain to better serve the Insurtech industry. By using these tools, the company hopes to deliver personalized, affordable solutions that can help transform the industry.
Also Read: Safaricom Calls for Faster Cloud Adoption at Decode 3.0
