The International Labour Organization (ILO) in partnership with Habitat for Humanity and Kenyan firm Britam have launched a new property insurance initiative to low-income earners and other underserved markets.
The project has its focus as purchasers of the affordable housing built under the government’s Big Four agenda.
Penetration of property insurance in Kenya is relatively low in comparison to other forms of insurance.
According to ILO chief of social finance and impact insurance Craig Churchill, only 4.5 million people had property insurance in Africa as of 2015 compared to the 46.4 million people covered by life insurance.
“Across the world, the market for property insurance for low-income segments is relatively nascent, we are hoping that this partnership will help in unlocking this unmet market potential ” he said.
Insurer, Britam, who was selected for the project said it has been offering products targeting emerging and underserved segments since 2007.
The ILO and Habitat for Humanity will support the insurer with product development, capacity building, distribution and other key partnerships.
The project’s long-term aim is to develop cost-effective and viable insurance products for the identified segments.