Microinsurance begins to grow

• ILO gives a boost to efforts in pushing insurance to down market population

Mobile services

MicroEnsure has specialised in developing low-end insurance products and enhancement of sales channels. Mr Banda says in the last few years penetration of insurance to the poor has been aided by mobile phones companies, acting as the sales points.

The microinsurance in Kenya currently operates under the existing Insurance Act.

“We are in the process of amending the Act to develop a policy which will be used as a guideline to develop microinsurance in Kenya,” Noella Mutanda, Insurance Regulatory Authority, Head Corporate Communications told smart company.

Some countries such as India and the Philippines have established regulations.

“By far, India is the world’s leader in microinsurance development which was driven from the 1990s by a requirement by regulators that private insurers have a portion of their portfolios in the rural and social sectors” says Mr Churchill.

In Africa demand for microinsurance is growing. ILO is also working on a project with the International Livestock Research Institute (ILRI) to experiment with livestock insurance for pastoralists using satellite technology to monitor available fodder.

The product will be underwritten by UAP and distributed by Equity Bank.