NCBA Group and Sanlam Life Insurance have announced a partnership to bring new life insurance products to the Kenyan market, targeting affordability and accessibility. The joint initiative introduces two innovative products: Digital Last Expense, covering funeral costs, and Go Educator, designed to support customers in funding education expenses.
These offerings are aimed at addressing financial barriers and limited awareness that have hindered life insurance uptake in Kenya.
The partnership is strategically timed, as Kenya’s insurance sector has seen moderate growth despite challenges. As of the first half of 2024, the country’s insurance penetration rate reached 2.4 percent, a slight improvement from 2.3 percent in 2022 but still below the global average of 7 percent.
In 2023, Kenya’s insurance industry recorded a robust 16.7 percent increase in gross premiums, amounting to KSh 361.4 billion compared to KSh 309.8 billion in 2022.
NCBA Group Managing Director, John Gachora, expressed confidence in the collaboration with Sanlam Life Insurance, highlighting the company’s mission to offer comprehensive financial solutions for customers. “By offering these innovative life insurance products, we aim to enhance the financial well-being of our clients and ensure they have the necessary support during critical moments in their lives,” Gachora stated. He emphasized that the new offerings would address key barriers to life insurance adoption in Kenya, particularly misconceptions and affordability challenges.
The partnership leverages NCBA’s extensive network, with 1,550 trained staff across all branches ready to support customer needs. NCBA Bancassurance Intermediary MD, Samuel Otieno, announced that the Digital Last Expense and Go Educator products would be distributed through the bank’s bancassurance channels, making the offerings widely accessible. “Our mission is to ensure that our customers get access to essential financial services and deepen financial inclusion,” Otieno said, adding that NCBA aims to achieve over KSh 200 million in gross-rated premiums in the first year.
The Digital Last Expense cover, starting at KSh 108 per month, provides a nuclear family coverage of up to KSh 50,000 per member. Customers opting for a higher premium of KSh 900 per month can secure coverage of up to KSh 500,000 per member. The product will be available on NCBA’s progressive web application, with plans to integrate it into the NCBA Now App, allowing seamless access during banking transactions.
Sanlam Kenya CEO, Nyamemba Patrick Tumbo, highlighted the value of offering insurance through a well-established bank network, ensuring convenience and inclusion. “We will provide the protection while NCBA provides the platform for distribution. We want to make sure that insurance is available in all branches and on the app to ensure inclusion for different Kenyan households,” Tumbo said. He added that payment flexibility, including options to pay premiums in bulk or monthly, aims to make insurance more affordable and prevent policy lapses.
In support of the collaboration, Insurance Regulatory Authority (IRA) Market Conduct Director, Anne Chelagat, endorsed the initiative, acknowledging that Kenya’s life insurance uptake is below potential. Chelagat noted the IRA’s plans to strengthen consumer awareness through county-level outreach and media campaigns, aiming to boost life insurance adoption.
The NCBA and Sanlam partnership reflects a broader trend of increased collaboration in Kenya’s insurance sector, as industry players work together to overcome challenges and drive growth.