AVLC Group, a consortium of several companies, have teamed up to offer online credit for motor vehicle or medical insurance cover.
The platform, dubbed ‘BIMA HIMA’, launched few weeks ago, is the first and only mobile insurance premium finance in the Kenyan market.
The insurance cover will be offered through BKY Insurance Agency, a licensed agency with Insurance Regulatory Authority and an affiliate company of AVLC Group.
Customers will however need to have premium quotation beforehand from respective underwriters or agents before the insurance premium cover is approved.
AVLC Group Chief Executive Officer, Andrew Kanyutu said BIMA HIMA will ease the burden of paying for insurance premiums by breaking the payment plan up to a maximum of 4 instalments.
“The process of getting your insurance policy whether medical or for your motor vehicle has now been simplified through technology and our customers will also get the insurance cover on credit,” Mr Kanyutu said.
AVLC Group Chairman Moses Mureithi noted that Kenyans can now get medical and insurance covers instantly and pay for the cover in instalments.
“Bima Hima is expected to increase insurance penetration in the Kenyan market since the industry is still characterized by low penetration levels, currently estimated at three percent. According to the Insurance Regulatory Authority (IRA),” said Mureithi.
Mureithi added that the product will also be available even to Kenyans who have been blacklisted by the Credit Reference Bureau.
Speaking at the same event AVLC Group Executive Director, John Kageche described the platform as a financing solution to Kenyans during the pandemic period.
“Anyone that needs Insurance now, to pay later can use BIMA HIMA. The product allows you to buy insurance for anyone, at any time and anywhere in the world. As a concept, the principle of financial inclusion involves ensuring that both individuals and businesses have access to affordable and valuable financial products and services, delivered in a sustainable way. Premium financing allows more people to purchase insurance and to become part of the financial ecosystem,” Kageche said.
In October, the IRA said that insurance penetration in Kenya dropped to 2.43 percent of Gross Domestic Product (GDP) in 2019, which was the lowest point in 15 years down from its 3.44 percent peak in 2013.