Insurance companies have been advised to consider cashback on funeral insurance, if they are to increase uptake. The cashback will mature in the event of no death, a study by Ipsos Synovate commissioned by Association of Kenya Insurers (AKI) has revealed.
In the study conducted in 10 towns of Mombasa, Kisumu, Nyeri, Nairobi, Kajiado and Eldoret found refund of a specified percentage of the premiums could help change the perception of funeral cover as a ‘loss’ cover, into a funeral expenses-cum-savings product.
The report said that funeral policy should have a compensation/cashback plan and a reward system for everyone who takes up funeral cover with the minimum payment in case of death set at Sh300, 000.
The study also revealed that people from Western Kenya take the most of these covers with the rest of the population relying on burial committees and goodwill from employers to fund funerals.