Jubilee Group and FSD Africa have joined hands with seven insurtech companies to develop affordable insurance for underserved Kenyans. The partnership targets small businesses, informal workers, farmers and low-income households that have little or no access to formal insurance products today. The seven firms will spend eight weeks working with Jubilee on product co-creation before pilots launch in Kenya this November.
The seven companies were chosen from the BimaLab Africa Insurtech Accelerator alumni network and include Dukatech Solutions, Aura Insure Technologies, Inclusivity Solutions, DPE, Fiinovate, Agrails and Ibisa Network. Their work with Jubilee will focus on three areas including affordable insurance distribution, insurance solutions for SME ecosystems, and wellness models that connect customers to health and care services.
East Africa has more than 10 million small businesses that account for over 70% of jobs, yet insurance penetration among the segment averages about 1%. For many households, illness, extreme weather or another financial shock can quickly affect livelihoods and business income, leaving them without affordable insurance. Jubilee Group Deputy CEO Juan Cazcarra said the goal is to meet people where they are with products that are affordable, relevant and simple to access. FSD Africa's Elias Omondi added that the focus is on reaching people through channels they already use and at prices they can afford.
The work at Jubilee will be led through J-Hub, the Group's innovation and technology arm that develops and deploys digital and AI-powered solutions across the business. Solutions from this programme could later be introduced in other East African markets as Jubilee works to expand its customer base and bring more people into affordable insurance.
Image: State Farm Insurance and Affordable Computers in Eugene, Oregon (52025117848).jpg by Rick Obst, CC BY 2.0, via Wikimedia Commons