SanlamAllianz Life Insurance CEO Jacqueline Karasha.
Life insurance uptake in Kenya remains critically low owing to several issues including awareness and negative perception on insurance among the public. However, industry players are banking on customer education to stir up the sector.
Speaking in an exclusive interview with JEDCA MediaSanlamAllianz Life Insurance Chief Executive Officer Jacqueline Karasha said many Kenyans still do not fully understand the importance of life insurance despite the risks families face every day. She noted that life insurance penetration remains at around one percent due to lack of awareness among Kenyans.
Karasha said the biggest challenge for insurers is bridging the gap between available products and public understanding, adding that educating customers will unlock a huge untapped market.
“The biggest objective is how to bridge that gap and bring the product closer to the people so that they can appreciate what it means. There are a wide range of benefits but very low awareness and that is the first thing we have to do, educate Kenyans,” she said.
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Commenting on other forms of insurance, Karasha said many Kenyans insure assets such as cars and even phones but overlook life insurance, which she described as the foundation of financial security and legacy planning. She said that there is a need for people to recognize the benefits of life assurance, just like any other insurance product.
Negative perception on life insurance
In Kenya there’s a notion that taking life insurance has been viewed as an invitation of misfortune, something that Karasha admits, noting that some people believe such myths. However, she urged Kenyans to take time to look into the positive side of life insurance and ditch backward myths.
“The reason why we put on seat belts in the car is not because we know we will get into an accident, but in the event that it happens, we are safeguarded. You don’t take insurance because something bad will happen. You want that surety that whether I am here or not, I have safeguarded the people that I love,” she reiterated.
Financial Literacy and Affordability
Karasha said SanlamAllianz has focused heavily on customer education and financial literacy after realizing that low insurance uptake is closely linked to awareness and poor savings culture. The company has several financial literacy programs geared toward helping Kenyans understand the importance of financial planning and savings.
She also emphasized that affordability is no longer a barrier stating that Kenyans can start insurance and retirement planning with as little as Sh500 per month.
