In recent years, Kenya has made significant progress in expanding insurance coverage for its population.

Previously, a large number of people had limited or no access to insurance services. However, the situation has changed dramatically, and now comprehensive and innovative insurance services are accessible to the masses. This development has brought about a positive impact on the overall well-being and financial security of the Kenyan population.

Kenya’s insurance market has experienced substantial growth in recent years. The Association of Kenya Insurers’ Annual Insurance Report reveals a significant rise in written premiums from 2012 to 2013, along with a notable increase of over 16 per cent in gross earnings. Despite these impressive figures, there remains ample opportunity for further expansion within the industry.

British-American Investments Company (Britam) is a diversified financial services group listed on the Nairobi securities exchange. It has established itself as a prominent player in the Kenyan financial services industry, offering a wide range of services.

The life insurance business of Britam has emerged as a key driver of business growth within the group. In the first half of 2014, the insurance business reported a 23.2 per cent increase in profits, with a revenue growth of KSH 5.3bn shillings compared to KSH 4.3bn the previous year. The life business alone accounted for KSH 3.1bn shillings, excluding KSH 1bn in pension contributions. This consistent performance has been maintained over the past few years.

An evolving business

Britam is a leading financial institution that offers a comprehensive range of financial products and services. With expertise in insurance, asset management, banking, and property, Britam caters to diverse needs.

Their insurance offerings include life, health, and general insurance, providing coverage for various risks. In addition, Britam offers pension plans, unit trusts, investment planning, and wealth management services, ensuring clients can effectively grow and protect their assets.

With a focus on innovation and growth, Britam has also ventured into offshore investments, retirement planning, discretionary portfolio management, property development, and private equity. With nearly 50 years of experience, Britam has made a significant impact in the insurance sector in Kenya and has established itself as a distinguished player in the East Africa region.

Britam is a strategy and innovation-driven company whose mantra squarely lies in customer satisfaction offered through market-driven products and services. According to Wandera “The cornerstone of Britam’s success is its over 1,700 financial advisers and employees who are the company’s greatest brand ambassadors. The effective management of this channel has earned the company the industry’s top award for the last seven years.”

Insurance plays a vital role in Kenya’s growing economy. Unfortunately, research shows that close to 50 per cent of the population have limited or no access to insurance, mainly due to their diminished economic status. As a result, loss of property, sickness, accidents and death become calamities from which most families never recover. Hence, the an enormous need to develop micro-insurance products to address these challenges.

While there has been a marked increase in the number of people taking up insurance in Kenya and the wider region, more still needs to be done to bring a greater amount of the population under insurance, and to mobilise savings. In 2013, insurance premiums accounted for only 3.4 per cent of GDP, a modest 0.3 per cent increase from 2012, but still significantly low, which is why fostering innovation is one of the key priorities for
companies like Britam.

It has invested heavily in technology and human resource development, as these are key aspects that transform the customer experience and help change perceptions about the industry. “Britam has been in the frontline of using innovation and technology to develop micro-insurance products that seek to meet the ever-growing needs of the market and further deepen insurance in the bottom of the pyramid,” explains Wandera. These policies, designed especially to help individuals with low incomes get protection against loss of property, sickness, death and accidents, are gaining ground in Kenya, where a vast proportion of the population would otherwise not have any access to insurance.

In Kenya, the number of mobile phone users has reached approximately 19 million, with a significant portion utilizing smartphones. This has led to the adoption of digital apps for insurance products, resulting in a reduction in reliance on intermediaries. Notably, the use of technology has played a crucial role in the success of Britam’s microinsurance offerings, as it has substantially lowered the expenses associated with providing insurance to individuals with lower incomes. As a result, awareness of the advantages of insurance, particularly micro-insurance, has been steadily increasing.

“Microinsurance opens up insurance to a broader cross-section of the population, building awareness, and in turn increasing the customer base,” says Wandera. “In an ever-changing and competitive marketplace, it is the convenience offered by technology and an understanding of how it can be used to improve the everyday lives of Kenyans that will ultimately drive penetration.”

Last year, Britam partnered with Safaricom and Changamka to launch a micro-insurance health cover called Linda Jamii. This affordable and comprehensive medical cover is aimed at the lower income bracket and is designed to widen access to medical insurance. According to Wandera, the launch of Linda Jamii aligns with Britam’s focus on leveraging technology to transform the insurance industry in the region.

Britam also has one of the strongest actuarial departments in the industry in Kenya that is able to provide technical knowledge in the business. The financial advisors undergo a rigorous training programme to advance their skills and abilities. With this knowledge and experience, they are able to constantly engage with clients and meet their everyday needs.
“Our financial advisors are supported by Britam’s countrywide distribution channels including franchise agencies to ensure that service reaches every corner of the country,” says Wandera.

Local knowledge proves vital
Britam’s success with its innovative insurance products is not surprising, considering its extensive history. The company has been operating in Kenya since 1965 and has experienced significant growth in the past decade.

This growth has solidified Britam’s position as one of the largest financial services providers in the country. Additionally, the company has received numerous awards and accolades in the insurance sector, further highlighting its ability to establish a unique presence in the highly competitive business of life insurance in Kenya.

“Last year, Britam was named the best insurance company in Kenya by Capital Finance International for its innovative micro-life insurance product that has increased insurance penetration in Kenya,” says Wandera. “The award recognised the company’s commitment to delivering innovative products and services that meet global standards, reaffirming Britam’s brand promise of ‘your journey is our journey’.” For the last eight years, Britam has won the Association of Kenya Insurers (AKI) Company of the Year Award due to the performance of its life insurance agents. The awards recognise the volume and quality of business sold measured in terms of annualised premium income, number of policies sold and persistence.

Britam has experienced significant growth over the past five years due to its innovative approach to insurance, financial services, and management strategy. As the leading company in Kenya’s life insurance sector, Britam’s industry expertise, technical proficiency, and local knowledge position it well to continue gaining traction in the thriving Kenyan insurance market and capitalize on existing opportunities.