Jubilee Group and FSD Africa’s BimaLab accelerator have partnered with 7 insurtech companies to develop affordable insurance products for small businesses, informal workers, farmers, and low-income households in Kenya. The partnership will bring the companies together with Jubilee for an eight-week product co-creation programme focused on digital insurance distribution, protection for small-business ecosystems, and services linking insurance with health and wellness. This initiative aims to develop products that reach customers who have traditionally had limited access to formal insurance.
The seven selected companies are Dukatech Solutions, Aura Insure Technologies, Inclusivity Solutions, DPE, Fiinovate, Agrails, and Ibisa Network. They were selected through a competitive process involving alumni of the BimaLab Africa Insurtech Accelerator. The programme comes amid a significant insurance coverage gap among small businesses in East Africa, with over 10 million small and medium-sized enterprises accounting for over 70% of jobs, yet insurance penetration averages about 1%.
For businesses and households with limited financial reserves, illness, extreme weather, and other unexpected events can disrupt income, deplete savings, and threaten livelihoods. The partners will test products designed to make insurance more accessible through existing customer networks, digital platforms, and everyday transactions. Juan Cazcarra, deputy group chief executive officer of Jubilee Group, emphasized the need to meet people where they are, with products that are affordable, relevant, and simple to access.
The programme will focus on three areas: low-cost bundled and embedded insurance distribution, insurance solutions for small-business ecosystems, and wellness and engagement models connecting customers to health and care services. For Jubilee, the initiative provides an opportunity to combine its established insurance operations with the technology, specialised expertise, and customer networks of insurtech companies. Embedding insurance into existing services and transactions could help the insurer reach customers who may be difficult to serve through conventional sales channels.
Jubilee’s partnership follows similar efforts by Britam to use technology partnerships and startup collaboration to develop new financial services products and expand insurance access. In February 2024, Britam launched BetaLab, an innovation hub designed to incubate insurtech and fintech startups and connect them with the insurer’s business units. The initiative aims to accelerate product development and identify technology-driven solutions to challenges in insurance distribution, claims processing, and financial inclusion.
FSD Africa’s BimaLab programme aims to help insurance innovators move beyond product development and into commercial markets. By connecting established insurers with technology companies, the programme seeks to address barriers involving affordability, distribution, and customer engagement. The selected companies will contribute different technologies and business models to the programme, including bundled and embedded insurance distribution, software-as-a-service underwriting, and distribution tools for small businesses.
The partnership between Jubilee Group and FSD Africa’s BimaLab accelerator provides a promising solution to the insurance coverage gap in Kenya. With the selected insurtech companies bringing expertise in insurance technology, healthcare engagement, lending, and climate-risk protection, the programme is poised to make a significant impact. By testing innovative products and distribution models, Jubilee and FSD Africa aim to increase insurance penetration and provide financial protection to those who need it most.
Key points
- Seven insurtech companies have been selected to develop affordable insurance products for small businesses and low-income households in Kenya.
- The programme aims to address the significant insurance coverage gap among small businesses in East Africa, where insurance penetration averages about 1%.
- The partnership will focus on three areas: low-cost bundled and embedded insurance distribution, insurance solutions for small-business ecosystems, and wellness and engagement models connecting customers to health and care services.
