By Jimmy Kariuki
Kenya’s largest bank by asset, Kenya Commercial Bank (KCB) has partnered with Liberty Life Assurance Kenya to offer an education savings plan dubbed KBC Elimisha, which targets to allow low income earners to purchase insurance for as low as sh500.
The venture which banks on KCB’s large customer base targets to reach over 10 million people and increase insurance industry penetration from the current 3.5 per cent of the GDP, which is lower than the world average of 6.28 per cent.
Speaking during the event the regulators representative, Agnes Ndirangu, also commended on the efforts made in research attributing to research as a key factor in any products success.
“People can put products in the market but fail for lack of research” said Insurance Regulatory Authority’s Chief Technical Manager Agnes Ndirangu.
She also attributed the growth in the sector to where premiums grew to 2.7 billion to agents saying they contributed more than 50 per cent.
In the venture KCB is expected to provide over 14,000 agents in the role out of this products including KCB stuff and over 1000 sales representatives, together with other sales campaign.
Kenya Commercial Bank (KCB) CEO Mr Joseph Oigara however noted that over 50 per cent of income in Kenyan families is spent on education.
“This collaboration will enable KCB to continue serving its client in various business segments as well as play a crucial role in contributing towards securing the future of our children through comprehensive product positioning,” said Mr Oigara.
He also added that the policy has a terms ranging from 5 to 20 years with a sum assured option ranging from sh50,000 to sh40 million and provides flexibility where the policy holder could opt to increase or decrease the sum assured.
Liberty Life Assurance Managing Director Abel Munda added that increase support for education is key in achieving the sustainable development goal agenda four.