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Home»Business»Brokers pivot to microinsurance as insurance market stalls
Business

Brokers pivot to microinsurance as insurance market stalls

By By David NjaagaJuly 9, 2025No Comments4 Mins Read
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Brokers pivot to microinsurance as insurance market stalls
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Association of Insurance Brokers of Kenya National Chairman John Lagat (centre), Birdview Microinsurance Director Richard Muiru (right) and CEO James Kimani during a meeting in Nairobi.

Insurance brokers are shifting to microinsurance to reach millions of informal workers who remain uninsured, as the country’s insurance market stagnates despite years of policy pushes and industry lobbying.

The Association of Insurance Brokers of Kenya (AIBK) has partnered with Birdview Microinsurance to expand affordable insurance products targeting low-income earners and small businesses that have long struggled to access cover.

“Brokers have traditionally focused on large accounts, but we must now reach Kenyans who live without any form of insurance to protect them during crises,” noted AIBK National Chairman John Arap Lagat.

Kenya’s insurance penetration remains below 3 per cent, according to the Insurance Regulatory Authority (IRA), reflecting limited uptake in a country where informal work dominates the economy and many families lack savings to cover emergencies.

James Kimani, Chief Executive Officer at Birdview Microinsurance, explained that brokers still control a significant portion of the insurance market and can play a crucial role in driving microinsurance uptake by simplifying distribution and claims processes.

“Brokers are crucial in getting microinsurance to Kenyans who face financial shocks but cannot afford conventional insurance products,” observed Kimani.

Birdview Director Richard Muiru noted that the firm will also target Kenyans in the diaspora who want to support families back home with medical and funeral cover, using technology to reach customers who are traditionally hard to serve.

“Kenyans abroad want to help families during emergencies, and we aim to give them a way to buy cover that protects loved ones while easing the financial burden,” explained Muiru.

Microinsurance offers small-scale, affordable insurance products tailored for low-income individuals.

However, the sector has struggled to grow due to low awareness, distrust in insurance providers, and a lack of products tailored for informal workers.

Eliud Adiedo, Chief Executive Officer at AIBK, observed that brokers can help bridge the trust gap by offering relevant products to underserved markets while using digital platforms to reduce costs and paperwork.

“Technology and a focus on underserved markets will allow brokers to deliver insurance to Kenyans who need it most while supporting community resilience,” noted Adiedo.

Association of Insurance Brokers of Kenya National Chairman John Lagat (centre), Birdview Microinsurance Director Richard Muiru (right) and CEO James Kimani during a meeting in Nairobi.

Insurance brokers are shifting to microinsurance to reach millions of informal workers who remain uninsured, as the country’s insurance market stagnates despite years of policy pushes and industry lobbying.

The Association of Insurance Brokers of Kenya (AIBK) has partnered with Birdview
Microinsurance to expand affordable insurance products
targeting low-income earners and small businesses that have long struggled to access cover.
“Brokers have traditionally focused on large accounts, but we must now reach Kenyans who live without any form of insurance to protect them during crises,” noted AIBK National Chairman John Arap Lagat.

Kenya’s insurance penetration remains below 3 per cent, according to the Insurance Regulatory Authority (IRA), reflecting limited uptake in a country where informal work dominates the economy and many families lack savings to cover emergencies.
James Kimani, Chief Executive Officer at Birdview Microinsurance, explained that brokers still control a significant portion of the insurance market and can play a crucial role in driving microinsurance uptake by simplifying distribution and claims processes.

“Brokers are crucial in getting microinsurance to Kenyans who face financial shocks but cannot afford conventional insurance products,” observed Kimani.

Birdview Director Richard Muiru noted that the firm will also target Kenyans in the diaspora who want to support families back home with medical and funeral cover, using technology to reach customers who are traditionally hard to serve.
“Kenyans abroad want to help families during emergencies, and we aim to give them a way to buy cover that protects loved ones while easing the financial burden,” explained Muiru.

Microinsurance offers small-scale, affordable insurance products tailored for low-income individuals.
However, the sector has struggled to grow due to low awareness, distrust in insurance providers, and a lack of products tailored for informal workers.

Eliud Adiedo, Chief Executive Officer at AIBK, observed that brokers can help bridge the trust gap by offering relevant products to underserved markets while using digital platforms to reduce costs and paperwork.
“Technology and a focus on underserved markets will allow brokers to deliver insurance to Kenyans who need it most while supporting community resilience,” noted Adiedo.
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Published Date: 2025-07-09 11:03:17
Author:
By David Njaaga
Source: The Standard
By David Njaaga

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