9th July, 2015..... East Africa’s leading Insurance Company, Jubilee Insurance has partnered with Rafiki Microfinance Bank to distribute life insurance products. The move is expected to boost its budding bancassurance unit and increase insurance penetration in Kenya. The deal was officially signed today between Jubilee Insurance and Rafiki Microfinance Bank.
Jubilee Insurance Chief Executive Officer Patrick Tumbo said the partnership with Rafiki will help in improving access to life insurance products among Kenyans. “This partnership will enable Rafiki Microfinance Bank customers to access our life products with ease from their banker across the country,” said Tumbo. Jubilee Insurance offers customized products that best suit the needs of the client however diverse.
“Jubilee Insurance intends to cushion Kenyans against the increasing cost of living and at the same time enable them access quality education through a reliable financial plan,” added Tumbo. Jubilee Insurance’s education life policy allows for tax relief, flexible policy premium payments and policy loans. The policy also offers a medical accident cover for both parent and child.
Rafiki Microfinance Bank Managing Director Ken Obimbo said the institution is eyeing the huge opportunities in Kenya’s under-penetrated insurance market. “The insurance penetration in Kenya is currently below four per cent signifying massive headroom for growth and entry of new players like microfinance institutions,” said Obimbo.
He added that life insurance coverage in Kenya remains dismally low owing to factors like ignorance and traditional African beliefs that frown upon contemplating one’s demise. “We will work closely with Jubilee, a major player in the life insurance industry, to drive higher uptake of this particular category of insurance products among Kenyans,” Obimbo explained.
Bancassurance refers to the integrated business of selling insurance alongside conventional banking products. Although it is in its infancy in Kenya, bancassurance is touted as a way of enhancing insurance penetration in Kenya. Banks and Microfinance institutions provide an effective route-to-market given their well-established selling channels and financial expertise.
About Jubilee Insurance
Jubilee Insurance was established in August 1937, as the first locally incorporated Insurance Company based in Mombasa in 1937. Jubilee Insurance has spread its sphere of influence throughout the region to become the largest Composite insurer in East Africa, handling both long-term and short-term insurance. Today, Jubilee is the number one insurer in East Africa with over 450,000 clients.
Jubilee Insurance is also the largest provider of medical insurance across East Africa that includes many of the region’s blue chip companies. Jubilee Insurance has a network of offices spanning Kenya, Uganda, Tanzania, Burundi and Mauritius. It is the only ISO certified insurance group listed on the three East Africa stock exchanges – The Nairobi Securities Exchange (NSE), Dar es Salaam Stock Exchange and Uganda Securities Exchange.Its regional offices are highly rated on leadership, quality and risk management and have been awarded an AA- in Kenya and Uganda, and an A+ in Tanzania
About Rafiki Microfinance
Rafiki Microfinance Bank Limited is the premier relationship microfinance institution, the first to be owned by a commercial bank in the Kenyan market. Rafiki Microfinance Bank was conceived by Chase Group in 2009 and subsequently began operations in 2011.
The institution has distinctively positioned itself to empower the communities it operates in to come out of poverty and live in dignity; by up scaling businesses thereby creating wealth and generating employment opportunities to many. Today, Rafiki has widened financial access in the microfinance sector through multiple delivery channels. Presently with 19 branches in 12 Counties, the microfinance is steadfastly realizing its vision of being the leading change agent in youth entrepreneurship development in Africa.