CIC’s new microinsurance subsidiary to offer affordable insurance solutions to Kenyans

Through the new subsidiary, the insurer will offer a portfolio of accessible microinsurance solutions tailored for low- and middle-income earners, micro, small and medium enterprises (MSMEs), farmers and cooperatives, reinforcing its commitment to deepening financial inclusion and strengthening economic resilience.

The subsidiary is governed by the Insurance Regulatory Authority’s Microinsurance Regulations of 2020, which stipulate a framework for insurers to offer products tailored to low-income and underserved customers.

“We are happy to launch CIC Impact because it responds to sector advancements. While CIC has provided microinsurance solutions for more than 10 years, the new subsidiary gives the business dedicated focus to develop simpler, more innovative products and expand access to insurance for more Kenyans. Its main goal is to reach the informal sector, which currently employs about 83% of Kenyans, and who are primarily not covered by traditional insurance,” said Dr Nelson Kuria, Group Chairman, CIC Insurance Group.

Kenya continues to face a significant insurance protection gap, with the Insurance Regulatory Authority indicating that penetration stands at only 2.3%, a majority of these being in the formal sector.

Speaking during the launch, Patrick Nyaga, Group Managing Director and CEO of CIC Insurance Group, said: “Through CIC Impact, we are expanding access to insurance by offering affordable, accessible solutions tailored to underserved groups, particularly those in the informal sector. With annual premiums starting below Ksh 3,000, more Kenyans can protect their businesses, livelihoods, and families. This approach is already delivering results, with microinsurance premiums in CIC growing significantly from 2020 to date , reflecting rising trust and demand for these solutions. “

CIC and the Philippines’ CARD Mutual Benefit Association (CARD MBA) have also signed a partnership agreement to work together in expanding access to affordable insurance. Through this collaboration, CARD MBA will share its global experience in providing insurance to low income communities.

“Our mission is not only microinsurance but eradicating poverty. That is why we are sharing knowledge to strengthen products, improve service delivery, build staff capacity and use technology to reach more people with simple, affordable insurance solutions that will improve lives,” said Dr. Jaime Aristotle Alip, Founder and Chairman Emeritus of CARD MRI.

Microinsurance works by pooling small contributions from many people to protect those who experience a covered loss. To keep contributions, commonly referred to as premiums, affordable, the cover focuses on specific risks, offering practical rather than extensive benefits for users.

Products are also distributed through digital channels and trusted partners such as SACCOs, traders, employers and mobile platforms, reducing operating costs and making insurance accessible to people who have traditionally been priced out of the market.

Through CIC Impact, customers will access affordable insurance products that protect MSMEs from operational risks, provide coverage for group funeral expenses, student personal accident coverage, pensions, personal accident coverage for boda boda riders, security guards, and blue collar workers, medical coverage for registered groups, daily cash support during hospitalization as well as agriculture and livestock insurance.