Regional insurer CIC Insurance Group has set up a microinsurance subsidiary, CIC Impact, in a fresh push to expand insurance access among Kenya's low-income households, informal sector workers and small businesses.
This comes amid persistently low insurance penetration at 2.4 per cent, significantly below the global average of 7.4 per cent—primarily due to high premium costs, low disposable incomes, and a deep public trust deficit regarding claim settlements.
According to management, the new subsidiary will provide “affordable” insurance products targeting low- and middle-income earners, micro, small and medium-sized enterprises (MSMEs), farmers and cooperatives, as the insurer seeks to narrow Kenya's insurance protection gap.
CIC Insurance Group, Britam, ICEA Lion and Jubilee account for the lionshare of Kenya's insurance market, across life (long-term) and general (short-term) categories.
According to the Insurance Regulatory Authority (IRA), insurance penetration in Kenya remains low with the majority of policyholders drawn from the formal sector, despite the informal economy employing about 83 per cent of the country's workforce.
CIC Impact will operate under the Insurance Regulatory Authority's Microinsurance Regulations, 2020, which provide a framework for insurers to develop simplified and affordable products tailored to low-income and underserved customers.
Speaking during the launch in Nairobi, CIC Insurance Group chairman Nelson Kuria said the subsidiary will enable the company to focus exclusively on designing innovative, accessible products for people who have traditionally been excluded from conventional insurance.
"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," said Kuria.
He noted that the primary target is the informal sector, whose workers largely remain uninsured despite accounting for the bulk of Kenya's labour force.
Group managing director and CEO Patrick Nyaga said the insurer is positioning microinsurance as an affordable financial safety net, with annual premiums starting below Sh3,000.
"Through CIC Impact, we are expanding access to insurance by offering affordable, accessible solutions tailored to underserved groups, particularly those in the informal sector. More Kenyans can now protect their businesses, livelihoods and families," said Nyaga.
The company said demand for its microinsurance products has grown steadily, with premiums increasing from Sh131 million in 2020 to a cumulative Sh1.2 billion by the first half of 2026, reflecting rising awareness and trust in low-cost insurance products.
Beyond Kenya, CIC has also entered into a partnership with the Philippines-based CARD Mutual Benefit Association (CARD MBA) to strengthen its microinsurance business through knowledge sharing, staff training, technology adoption and product innovation.
CARD MRI Founder and chairman Jaime Aristotle Alip said the collaboration aims to improve financial protection for vulnerable communities while supporting poverty reduction.
Through CIC Impact, insurance products will cover MSMEs, funeral expenses, students, boda boda riders, security guards, blue-collar workers, registered groups, hospital cash benefits, pensions as well as agriculture and livestock.
Microinsurance relies on affordable premiums collected from many policyholders to protect individuals against specific risks.
Products are distributed through digital platforms, Saccos, employers and other community-based channels, helping reduce costs and extend insurance services to populations that have historically been excluded from traditional insurance.
