Micro insurance

Micro insurance

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Micro insurance
Micro insurance
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Financials
Insurance
Business Model Description

Provide affordable and customer-adjusted health and property insurance through mobile platforms, focusing on agri-insurance, natural disaster coverage and production losses.

Expected Impact

Mitigate the risk against natural disasters and increase financial inclusion in Kenya, especially for farmers and small and medium enterprises.

How is this information gathered?
Updated: 25 Oct, 2021 Date of Production: 1 Feb, 2021
Kenya
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
5% - 10% (in GPM)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
No Poverty (SDG 1) Good health and well-being (SDG 3)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Industry, Innovation and Infrastructure (SDG 9) Reduced Inequalities (SDG 10)
Farmers as potential ACRE Africa customers
Photo by ACRE Africa
Case Study: ACRE Africa provides micro-insurance products to strengthen farmer resilience
Africa-based insurance service provider ACRE Africa, a UNDP Business Call to Action (BCtA) member, provides micro-insurance products to strengthen the resilience of African farmers to climate risks.
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Sector Sources
  • 1) Khanna, M., Wimpey, J.S., Bruhn, M., Singh, S,, Hommes, M. and Sorokina, A. (2017). MSMEs Finance Gap: Assessment Of The Shortfalls And Opportunities In Financing Micro, Small And Medium Enterprises In Emerging Markets. World Bank. 2) UNKenya (2020). The Socio-Economic Impact of COVID-19 in Kenya. 3) World Bank (2019). Country Private Sector Diagnostic - Creating Markets In Kenya: Unleashing Private Sector Dynamism to Achieve Full Potential. 4) International Finance Corporation (2019). Her Home - Housing Finance for Women, https://housingfinanceafrica.org/app/uploads/HousingFinanceWomen1-29-20.pdf 5) Communication Authority of Kenya (2019). Annual Report 2019. 6) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. 7) Republic of Kenya (2018). Third Medium Term Plan 2018 – 2022 Transforming Lives: Advancing Socio-economic Development Through The 'Big Four. 8) ) United Nations Development Programme (2020). Articulating the Pathways of the Socio-Economic Impact of the Coronavirus (COVID-19) Pandemic on the Kenyan Economy. 9) Kenya Insurance Regulatory Authority (2019) Insurance Industry Annual Report 2018. 10) National Treasury and Planning and State Department for Planning (2020). Second voluntary national review on the implementation of the sustainable development goals. 11) Insurance Regulatory Authority (2019). Kenya Financial Stability Report 2019. Financial Sector Regulators. https://www.ira.go.ke/index.php/publications/publications 12) World Bank (2019). Insurance That Works: What Drives Insurance Sector Development In Kenya, What Are Some Opportunities Ahead?https://openknowledge.worldbank.org/bitstream/handle/10986/33177/Insurance-that-Works-What-Drives-Insurance-Sector-Development-in-Kenya-What-are-Some-Opportunities-Ahead.pdf?sequence=1&isAllowed=y
IOA Sources
  • 13) Frost and Sullivan (2018). Digital Market Overview: Kenya. A White Paper. 14) Dutta, A., Maina, T., Ginivan, M. and Koseki, S. (2018). Kenya Health Financing System Assessment 2018: Time to Pick the Best Path. Washington, DC: Palladium, Health Policy Plus. 15) Deloitte (2019). Insurance Outlook Report 2019/2020 East Africa. 16) Njoroge, Dr P. (2020). Presentation on the Status and Outlook of Kenya’s Banking Sector 2020. https://www.centralbank.go.ke/uploads/presentations/1483113962_PRESENTATION%20ON%20KENYA'S%20BANKING%20SECTOR%20SITUATION%20AND%20OUTLOOK.pdf 17) Kabia, E., Mbau, R., Oyando, R., Oduor, C., Bigogo, G., Khagaui, S. and Barasa, E. (2019). 'We are called the et cetera: experiences of the poor with health financing reforms that target them in Kenya', International Journal for Equity in Health, 18, 98. https://equityhealthj.biomedcentral.com/articles/10.1186/s12939-019-1006-2 18) Insurance Act, Chapter 487. http://kenyalaw.org/kl/fileadmin/pdfdownloads/Acts/Insurance_Act_Cap_487.PDF 19) KENIvest. Investment Incentives. http://www.invest.go.ke/starting-a-business-in-kenya/investment-incentives 20) APA Insurance (2020). Micro insurance. https://www.apainsurance.org/product_commercial_micro.php 21) SDG Tracker (2021). End poverty in all its forms everywhere. https://sdg-tracker.org/no-poverty