Britam has officially launched its microinsurance subsidiary, Britam Connect, following its licensing by the Insurance Regulatory Authority (IRA). This milestone makes Britam one of the first fully licensed microinsurance providers in Kenya, solidifying its leadership in the sector.
Since pioneering microinsurance in 2007 with its first product, Kinga Ya Mkulima, Britam Microinsurance has insured over four million Kenyans as of 2024, holding the largest market share in Kenya’s microinsurance sector at over 40%. With Britam Connect, the company is now doubling down on its mission to bridge the insurance gap through digital innovation, strategic partnerships, and tailored solutions.
Bridging the Insurance Gap
“Insurance penetration in Kenya remains low at 2.4% because many people perceive it as too expensive or complicated,” said Britam Group Managing Director and CEO, Tom Gitogo. “Britam Connect is addressing this challenge by integrating technology and partnerships to make insurance more accessible, affordable, and relevant to the everyday lives of millions.”
Low uptake of insurance in Kenya has been attributed to factors such as the perception that it is a luxury rather than a necessity, cost concerns, limited awareness, and the lack of tailored solutions for the informal sector and low-income groups. Britam Connect aims to shift this perspective by embedding insurance into everyday financial transactions and introducing flexible, pay-as-you-go premium models.
Embedded Insurance for Everyday Transactions
“We are launching embedded insurance products because we know our customers do not wake up thinking about buying insurance. They think about buying mobile data, fueling their motorbikes, or sending money. So why not integrate insurance into those everyday transactions?” explained Evah Kimani, Acting CEO of Britam Microinsurance Company.
She cited examples such as taxi drivers using the Little ride-hailing platform, who can now access personal accident cover for as little as KSh 5 per trip. In the event of an accident, they receive medical coverage and compensation for lost income, enabling them to return to work faster. Similarly, boda boda riders benefit from personal accident insurance bundled with mobile data purchases from Safaricom, ensuring they have coverage whenever they are on the road.
Since launching embedded insurance solutions a year ago, Britam Microinsurance has integrated insurance into mobile and digital services used by gig workers daily, covering over 300,000 individuals.
Protecting Farmers and the Informal Sector
Farmers insured under Britam’s Kinga ya Mkulima product, a partnership with Majani Insurance Brokers—a subsidiary of the Kenya Tea Development Authority—have already benefited from comprehensive health cover, enabling them to access medical services without financial strain. Pauline Mwangi, General Manager of Majani Insurance Brokers, highlighted the success of the partnership, which currently insures 200,000 farmers and covers a total of 600,000 individuals, including dependents.
“Our farmers no longer have to choose between healthcare and putting food on the table. With premiums starting at just KSh 85 per month, they can access both inpatient and outpatient care. This is the kind of solution that makes insurance meaningful,” Mwangi said.
Regulatory Support and Industry Growth
The launch of Britam Connect also marks a turning point for Kenya’s microinsurance sector. Kalai Musee, Director of Supervision at the IRA, noted that while microinsurance regulations were enacted in 2020, uptake by insurers had been slow.
“For nearly five years, it felt like we had passed a ghost law; no one was applying for a license. We needed companies willing to rethink insurance, move away from outdated models, and embrace technology. Britam Connect is doing exactly that,” Musee said.
He emphasized that affordability should not be a barrier to insurance, stressing that products can be designed to fit any income level. The IRA will support insurers like Britam Connect by running nationwide financial literacy programs targeting micro, small, and medium enterprises (MSMEs) and informal sector workers.
Ambitious Growth Plans Across Africa
Britam Connect is not limiting its ambitions to Kenya. The company has set an ambitious target of reaching 25 million people across Africa in the next five years. To achieve this, it plans to collaborate with InsureTech firms, savings and credit cooperatives (SACCOs), and development organizations to create innovative risk protection solutions.
One such initiative is its partnership with Oxfam, which has subsidized flood insurance premiums for residents in Tana River County. By leveraging satellite imagery and real-time weather analytics, Britam Connect aims to enhance risk assessment and ensure faster payouts for disaster-affected communities.
Kimani reiterated that Britam Connect’s success would not be measured solely in numbers but in the tangible impact it has on people’s lives.
“For us, success means that when a gig worker is involved in an accident, they can get treatment without worrying about hospital bills. It means that a farmer affected by floods can receive compensation and rebuild their livelihood. That is what Britam Connect is about—financial security that works for everyone, not just a privileged few,” she said.
