Insurers shift to all-in-one financial products as customer needs evolve

Kenyan insurers are increasingly combining investment, savings and insurance protection into single financial products as households seek solutions that can build wealth while cushioning them against rising healthcare costs and income shocks.

Liberty Kenya is the latest insurer to embrace the trend after enhancing its investment-linked life insurance plan, LifeVest, by embedding critical illness and permanent total disability benefits at no additional premium.

The move comes as many households grapple with growing medical expenses, uncertain incomes and the need to save for long-term goals such as retirement, education and home ownership.

Liberty Kenya Group Chief Executive Officer Kieran Godden said traditional financial products are no longer sufficient to meet changing customer needs.

"The traditional separation between saving, investing and insurance is becoming less aligned with the financial realities facing families, professionals, entrepreneurs and pre-retirees," he said.

"While more Kenyans are becoming intentional about investing for education, retirement, homeownership and legacy planning, many remain exposed to risks that can quickly interrupt years of disciplined saving."

Under the enhanced LifeVest plan, customers can invest from Ksh.50,000, make additional contributions from Ksh.1,000, and access partial withdrawals of up to 25 per cent of their accumulated fund value annually, subject to policy terms.

The plan also provides life cover equivalent to 10 per cent of the accumulated fund value, capped at Ksh.5 million, with the newly introduced critical illness and permanent total disability benefits each equivalent to 30 per cent of the life cover amount at no extra premium.

Liberty Life Managing Director and Principal Officer Nkoregamba Mwebesa said customers are increasingly demanding simpler financial solutions that protect both their investments and future income.

"Customers want solutions that support their ambitions, but they also need confidence that one unexpected life event will not completely derail their financial progress," he said.

Industry players say the shift towards integrated financial products reflects growing demand for flexible solutions that combine wealth creation with financial protection, as insurers seek to remain competitive in a market where customers increasingly value convenience and comprehensive cover.