Targeted products to boost uptake of insurance in underserved markets

By Isaac OGANGA

Within the last five years, it has become increasingly difficult for Kenyans, particularly those at the bottom of the pyramid, to access quality medical care, due to the sharp rise in the cost of living.

According to a study by the African Health Business, nearly half of Kenyans do not seek medical care when they fall ill, due to a lack of sufficient resources and the high cost of treatment.

As the rate of inflation continues to rise and the amount of disposable household income continues to decline, insurance can play a critical role in bridging access to healthcare gaps for people at the bottom of the pyramid.

However, with only 25 percent of Kenyans having health insurance, both private and public under the Social Health Authority (SHA), experts claim that more innovative strategies need to be implemented to increase the uptake of insurance amongst underserved communities.

Stephen Lokonyo, Managing Director at First Assurance, says that insurance providers must begin to develop targeted insurance products, with low premiums and flexible payment terms that align with the irregular cash flows of low-income individuals.

“Increasing insurance uptake in underserved communities requires a multi-pronged approach that addresses core barriers like high costs, lack of trust and complex processes,” said Lokonyo.

“Effective strategies focus on affordable products, digital innovation, community engagement, and strong government support,” he added.

Recently, First Assurance launched ‘First Afya Biashara’, a comprehensive health plan for small and medium-sized enterprises (SMEs) with 3 to 19 employees.

The plan encourages proactive health management by covering annual health check-ups and preventive services, which helps reduce extended absenteeism due to health issues.

It also covers conditions that are often overlooked by traditional insurance, including mental health management, substance abuse treatment, fertility treatments (IVF), and chronic disease management.

“This product addresses previous exclusions due to cost and complexity by offering flexible payment plans and no waiting periods,” posed Lokonyo.

Jesca Karegua, marketing manager at First Assurance, says that community outreach initiatives, such as free medical camps, can also help to bridge access to healthcare gaps for uninsured communities, ensuring those who would otherwise go without care receive it.

Every year, First Assurance partners with other private and public sector organisations to host free medical, dental, and optical camps in low-income communities.