How tech innovation is boosting access to insurance products

Workers' Compensation form. [GettyImages]

Many insurers in Kenya still rely heavily on brokers and agents to market their products. While this traditional model has been the backbone of distribution for years, it has also limited reach, especially in regions where digital and mobile-based solutions could greatly improve accessibility. 

Latest data from the Insurance Regulatory Authority (IRA) shows that by the end of 2022, Kenya had 11,400 agents and 176 brokers serving the entire industry. 

Compared to the size of the uninsured population, these numbers reveal a significant gap. Limited last-mile coverage continues to make insurance accessibility one of the biggest barriers to uptake. 

As a result, insurers are being pushed to explore new distribution models such as e-commerce platforms, mobile channels, and retail partnerships. 

The manual, paperwork-heavy engagement historically required to sell insurance no longer aligns with the pace of today’s increasingly digital and on-the-go consumers. People are demanding insurance products they can browse, compare and purchase from their phones, quickly and seamlessly. 

Overcoming these structural barriers requires deliberate leadership and a clear shift in purpose among industry players. For many insurers, current market pressures have sparked a necessary rethink, leading them to redesign their business models to remain competitive in the future. Long-standing norms within the industry are giving way to new possibilities, making this a defining moment to reshape insurance distribution models across Kenya. 

Incourage Insurance Agency, a Nairobi-based Insurtech firm, is one of the companies championing this transformation. The agency is changing how insurance reaches the market by empowering small and medium-sized enterprises and agents through a digital platform that streamlines insurance operations, enhances efficiency, and expands access. 

“Traditionally, agents have been underestimated, but Incourage recognises their crucial role in reaching customers. By providing a digital platform, we enable agents to quickly compare, apply for, and issue insurance policies online, making the process easier and more efficient,” says Kuni Kawano, CEO and Co-founder of Incourage. Instead of relying on lengthy manual processes, insurance agents using Incourage’s platform can instantly generate comparison quotations for various products. 

“Agents can apply for insurance policies online, eliminating the need for in-person visits. Once approved, certificates are issued through the platform, making the entire process faster and more convenient,” Kawano explains. 

The platform also integrates commission processing, allowing agents to receive payments directly. This structure not only saves time and improves efficiency but also makes it easier for SMEs and individuals to access insurance services that previously required multiple steps and physical interactions. 

Kenya’s insurance penetration remains low compared to other key markets, standing at 2.2 per cent as of the first half of 2025, according to data from the IRA and the Central Bank of Kenya. 

This figure is significantly below the global penetration average of 7.4 per cent, as reported in the Allianz Global Insurance Report 2025. 

Insurance in Kenya is still often perceived as a non-essential expense, something to be purchased only when required or mandatory. 

Incourage is addressing this challenge by placing technology at the centre of distribution. The agency aims to integrate with Safaricom and M-Pesa, which together have more than 300,000 mobile money agents nationwide. 

By enabling these agents to offer insurance services through the platform, the startup hopes to drastically extend insurance accessibility, effectively bringing policies closer to everyday consumers in every region of the country. 

Despite signs of economic recovery in 2024, insurance penetration still dipped by 0.2 percentage points, highlighting the urgency for innovative distribution strategies. It is this innovative approach that earned Incourage a position in Cohort Two of Safaricom’s Spark Accelerator Programme. According to Safaricom, selected startups will not only gain access to its technology infrastructure but also receive hands-on product development guidance and integration support designed to accelerate testing, scaling, and market fit. 

“As part of our commitment to our purpose of transforming lives, we aim to nurture, grow and scale commercially viable tech startups that drive positive societal impact,” said Safaricom chief business development and strategy officer Michael Mutiga.  

“We have broadened our scope of support to early-stage startups to include technology and product development support, access to market, and access to capital.” 

The Spark Accelerator is powered through a strategic partnership between Safaricom, M-Pesa Africa, and Sumitomo Corporation, and implemented by iHUB, with support from Vodacom, PwC, and AWS. 

Speaking about the broader vision for innovation on the continent, Managing Director of iHUB and Co-Creation Hub  Ojoma Ochai noted that Africa’s innovation ecosystems require new forms of financing and collaboration. 

“Corporate accelerators play a vital role by bringing the resources, infrastructure, and market access of established companies into direct partnership with startups. This approach strengthens the capacity of ventures to scale and creates new pathways for sustainable growth and resilience across the continent. The commitment of Safaricom, M-Pesa Africa, Sumitomo, Amazon Web Services, and PwC makes this vision possible, and we are proud to work together to shape Africa’s innovation and creative future,” she said.