Life is full of unpredictable risks. It’s often described as a game of probability and chance. Life’s diversity makes it impossible to predict when risks will occur. Insurance protects against these unforeseen risks.
In Kenya, insurance is widely seen as an essential need, as demonstrated by mandatory motor vehicle coverage. On the contrary, Kenyans should view insurance as a prudent safeguard.
Living without insurance exposes you to additional risks, potentially forcing you to choose between financial stability and health in emergencies.
“Insurance therefore is a safety net that everyone needs to take advantage of. It cuts across beyond the family set-up and even into business…as such we say it is a very good safety net that people need to take advantage of,” says NCBA Bancassurance MD, Samuel Odhiambo.
NCBA Bancassurance is an intermediary that sells policies on behalf of insurance companies. The financial services provider works with a carefully selected panel of up to 15 insurers to serve its clients. Mr Odhiambo stated that they could provide or match any insurance product currently available in Kenya.
They offer life, health and asset insurance. In the life insurance segment, NCBA’s flagship product is an education policy developed after identifying customer needs for solutions in this area. This product is called Go Educator.
“Statistics are showing us that up to 40% of emergency loans taken out are meant to pay school fees and medical expenses. Unlike traditional intermediaries who’d go to insurance companies, pick a product from the shelf and distribute it to customers…we built it from the bottom up with our customers,” he added.
Additionally, Mr. Odhiambo explained that NCBA offers a diverse range of products tailored for SMEs and business owners, who employ the majority of Kenya’s workforce. These employees face the risk of unexpected events, so NCBA provides various asset insurance products to protect both employers and employees from financial losses.
NCBA also offers health insurance products. Health is a critical need, and since people cannot predict when they will fall ill, they can only prepare for such scenarios. Health insurance is the largest contributor to premiums in Kenya. NCBA provides a comprehensive selection of health insurance options for individuals, families, companies and small SMEs.
Healthcare in Kenya is notably expensive, placing a huge financial burden on its citizens. According to the Managing Director, Kenyans spent approximately $5 billion on healthcare in 2024. Of this amount, 22% which is equivalent to nearly $1.14 billion, was paid directly out of pocket.
NCBA Bancassurance addresses this challenge by offering medical insurance that covers both in-patient and out-patient costs. To enhance the customer experience, NCBA provides dedicated relationship managers who guide clients through the process, offering peace of mind when purchasing insurance.
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The affordability of these policies is improved through risk pooling, a strategy that combines multiple risks to subsidize premium rates and maximize economies of scale.
For those unable to pay premiums upfront, NCBA Bank offers an Insurance Premium Financing (IPF) option. This flexible payment solution is extended to nuclear families, Small and medium enterprises (SMEs) and Companies.
NCBA makes insurance more accessible, allowing customers to get coverage without immediate financial strain. Through these offerings, NCBA Bancassurance aims to alleviate the high cost of healthcare in Kenya while providing tailored support and financing solutions.
“Insurance largely, other than being a risk mitigator, it fuels economic growth. We at NCBA have ensured that these solutions are accessible across all our branches. We have also digitised our insurance products, which are accessible within our website, and are now moving into our mobile application,” he said.
