SCC and CIC plan to pilot test and distribute a composite microinsurance product (3-in-1 covering health, accidental death and disability, and funeral) on a mass scale through member-based organizations and MFIs in Kenya.
The project includes:
Based on their cooperative values, SCC and CIC have a strong commitment to serve the poor. This initiative builds on the partners existing efforts, including a microinsurance supply study conducted by SCC (2008), and a small pilot with MFIs (2500 policies). CIC has experience in microinsurance and it is the leader on credit life market in Kenya.
The composite product is designed to provide more complete coverage at a more affordable price for low-income people. The linkage with the National Health Insurance Fund provides an interesting case for using market-based mechanisms (i.e. public-private partnership) to enable workers in the informal economy to access to health services.
Click here to view the Product Description of SCC.
CIC is targeting Kenya’s low-income population, particularly workers in the informal economy, members of savings and credit cooperatives in rural areas, members of other cooperatives, clients of microfinance institutions (MFIs). The insurer expects to cover 200 000 low-income persons during this project. If the initiative is successful in Kenya, the consortium plans to expand their outreach to other countries in the region.
Swedish Cooperative Centre (SCC), a non-profit, non-governmental organization, was established in 1958 to provide development support to co-operatives and other pro-poor people’s organizations. Together with its member organizations, SCC works in partnership with organizations in developing countries and Eastern Europe to contribute to the development of strong, efficient civil society, aimed at improving the living conditions of the poor. SCC is the leading partner responsible for the management and administration of the project.
“CIC's close relationship with the co-operative movement has enabled the company to develop suitable insurance products for the movement and utilize the co-operative structure for distribution, and this has been replicated in the provision of micro-insurance to the micro-finance institutions. I understand that they are insuring around 250,000 clients from 85 MFIs, the highest penetration in the market. I have no doubt that they will make full use of any assistance given to penetrate the low-income market further.”
Mike Ashurst, Vice-President, Reinsurance – ICMIF
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