SanlamAllianz Life insurance chief executive Jacqueline Karasha /JACKTONE LAWIFor decades, many Kenyans relied on relatives, friends and community fundraising to cover funeral expenses, medical bills and other financial emergencies.
However, urbanisation, migration and smaller household sizes are weakening those informal support systems, prompting more households to seek structured financial protection.
Players in the insurance sector now say more Kenyans are turning to long-term insurance and endowment policies as shrinking family support networks and changing social structures force households to take greater responsibility for financial emergencies.
Life insurer SanlamAllianz says demand for life insurance and long-term savings products has grown steadily over the past two years as more individuals seek financial protection against risks that were traditionally absorbed by extended families and communities.
The underwriter’s chief executive Jacqueline Karasha said social changes are reshaping how Kenyans prepare for financial shocks.
"Before we were very community-driven with larger family setups, but as society evolves, people are becoming more individualistic and the family unit is becoming smaller. People now have a much smaller circle to fall back on in case of anything," she said.
The shift comes as Kenya's insurance penetration remains low at about 2.5 per cent, leaving significant room for growth even as insurers redesign products to appeal to changing consumer needs.
She said the changing family structure has fuelled demand for products that combine savings, wealth creation and financial protection, with younger Kenyans increasingly seeking estate planning, education savings and retirement solutions.
"There is an increased need for people to plan. Conversations around legacy planning are no longer limited to older people. Even young people are asking how to protect their families and plan for the future," Karasha said.
The insurer says growing public awareness, wider access to financial information and changing attitudes towards discussing death and inheritance are also contributing to higher uptake of life insurance.
Speaking during the launch of the company's new Flexi Future Plus, a new policy, she noted that the trend is creating opportunities for insurers to develop simpler, more flexible products that combine savings with insurance cover.
Karasha said the industry must continue simplifying insurance products and investing in financial literacy if it is to attract the large proportion of Kenyans who remain uninsured.
"There is still a lot of awareness and education that needs to be done. Products have to be simplified and made more accessible so that people can understand the value of planning ahead," she said.
