Connect with us

Insurance

BimaNet Kenya: Disrupting the insurance landscape

By harnessing the power of word advertising, the audacious team at BimaNet has introduced an innovative model of distributing life insurance through network marketing

Published

on

BimaNet CEO Ms Wanjiru Githiomi- Nganga.

Approximately 90 years since the establishment of the first Insurance company in Kenya, insurance penetration currently stands at a dismal 2.73% of GDP compared to the global average of 6.28%.

Issues ranging from lack of education, distrust of the insurance industry, high cost of premiums, slow uptake of innovation, competing interests for limited resources and poor training of insurance distributors have been touted as some of the culprits for the poor performance by this sector.

The Association of Kenya Insurers (AKI) hopes to increase the penetration to 6% by the year 2020. To achieve this target, the industry is set to embark on a comprehensive campaign to educate the public about insurance and encourage them to embrace innovation and technology in this sector.

BimaNet Kenya Ltd, Africa’s first and only income protection and insurance benefits club is working with industry stakeholders to achieve this goal and surpass it. This innovative company has repackaged Life Insurance thereby making it more palatable and interesting to Kenyans who would not ordinarily purchase this product as a matter of course. By harnessing the power of word advertising, the audacious team at BimaNet has introduced an innovative model of distributing life insurance through network marketing. Backed by state of the art technology, their Customer Referral Programme provides an opportunity for anyone to plug into the system and build a lucrative business with a residual income component.

When a customer subscribes to BimaNet, their membership entitles them to a 5 in 1 package of insurance products comprising a life policy, critical illness, last expense, in hospital cash payout and personal accident rider benefits. BimaNet provides these benefits at a substantial discount of up to 75%, augments them with a Benevolent Fund that doubles the sums assured by the underwriter and pays cash back for no claims. The company has negotiated a Group Life scheme with UAP- Old Mutual and Sanlam and they pass on these discounts to their individual members. BimaNet is also in discussions with several other underwriters who have the capacity to service the anticipated critical mass of members that the company is targeting through its comprehensive digital media awareness campaign.

Speaking about the business, BimaNet’s CEO, Ms Wanjiru Githiomi- Nganga says: “One of the primary reasons touted for the dismal penetration statistics is that our industry has been heavily reliant on less than 4000 active insurance distributors to convert about 20 million insurable Kenyans to customers. It behooves us to rethink and innovate around insurance distribution so that we can turn the tide on the dismal statistics of insurance penetration in Kenya. In this regard, BimaNet is tapping into the potential of all economically active Kenyans with a flair for sales, enrolling them as members of the club and nurturing them into successful team builders and distributors of insurance within its micro marketing platform.” BimaNet is now experiencing a rapid growth spurt in member subscriptions because there is something in it for the ordinary Kenyan to take up Life Insurance, “We provide insurance with a twist that puts money in your pocket!” Ms Githiomi – Nganga concluded.

The BimaNet distribution model is a creative adaptation of very successful prototypes across the globe which have transformed the insurance landscape especially in South Africa, India and the USA.

Related: How technology is reshaping insurance landscape

John Ndara, BimaNet’s Resident Actuary and Executive Director said: “It took us four years of research and planning to adapt these models to suit the local conditions. We have conscientiously structured our business to address most of the pain points in Kenya’s insurance industry and develop a first of its kind distribution model that establishes a win-win relationship between the underwriters, insurance distributors (Agents and Brokers) and the general public at large.”

BimaNet Kenya Ltd is principally a distribution channel for life insurance but the company is also working towards introducing a wider bouquet of products to this captive audience such as medical, motor vehicle, education policies, household to mention a few. The BimaNet business model is certainly a game changer in the Kenyan insurance sector; their entry into this market will undoubtedly safeguard more families from plunging into a financial crisis when disaster strikes.

 

Business Today is the leading independent online business website in Kenya. Started in 2012 by a veteran business journalist, it has a huge following both in Kenya and abroad. It covers various business and related issues. Email editor at: [email protected]

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News Updates

Person of Interest1 day ago

Young sociologist who heads health docket in Turkana

Moses Natome, who has been re-nominated by Governor Josphat Nanok, says he a team player and has in the past...

Health1 day ago

Kenya faces Sh103b annual shortfall for universal health coverage

Health PS Julius Korir says so far the government is only able to afford Ksh 12.4 billion annually to cater...

NEWS1 day ago

Supreme Court explains why it threw out petitions

The court ruled that NASA candidate Raila Odinga did not formally withdraw from the election but only declared his intention to withdraw

Editorial1 day ago

Time Raila stopped being a political enigma

Election seasons must be predictable so that the people and their chosen government can move on with the business of nation...

Analysis1 day ago

Nairobi-based US diplomat quits, blasts Trump

In a scathing resignation letter, Elizabeth Shackelford tore into the Trump administration and Secretary of State Rex Tillerson for undermining the work...

LIFESTYLE3 days ago

Half of Govt workers are drug addicts

NACADA survey shows alcohol abuse among employees in the public sector stands at 57.9 percent, higher than the national average...

Economy3 days ago

Kenya’s economy to ‘bounce back’

Kenya’s economy is set to grow from the current 4.9% to 5.5% and 5.9% in 2018 and 2019 respectively, a...

Opinion4 days ago

Libya slavery scam: Africa has killed its own sun

African states have created the environment in their home countries that have made their citizenry so desperate and hopeless to...

Person of Interest4 days ago

Unique name that inspired KCPE star

As a biology teacher, Harrison Tanga was not fazed when he went to hospital to see his newborn child, unlike...

LIFESTYLE4 days ago

Youth turn to sex to soothe election pain

The struggle to make ends meet has left them disillusioned, apathetic and angry, according to the annual survey of nearly...

Advertisement

Trending