Inside East Africa’s $3bn micro insurance opportunity

East Africa's insurance sector is attracting global investors, with Kenya being a key market. The insurance penetration in Kenya is currently below 3 per cent, presenting a significant opportunity for growth. Bente Krogmann, the CEO of mTek-Services, a technology company in the insurance industry, shared insights on the potential of the market and the company's mission to democratize access to insurance. With a focus on leveraging technology to bridge the gap in distribution, trust, product availability, and affordability, mTek-Services is making strides in expanding insurance coverage in the region. The company's platform integrates various players in the insurance ecosystem, including underwriters, insurance agents, brokers, affinity partners, and financial institutions, to simplify the insurance process for consumers. Over the past four years, mTek-Services has made significant financial investments in its technology and established partnerships with over 40 underwriters, 200 insurance agents, and several distribution partners and financial institutions in Kenya. The platform has already reached around 300,000 people, demonstrating the impact of its services. Looking ahead, mTek-Services has plans to expand regionally into Tanzania and Uganda to further enhance insurance accessibility in the East African region. The company anticipates a cultural shift towards personal protection among the younger generations, which could drive increased demand for insurance products. In terms of growth sectors, mTek-Services is focusing on medical and motor insurance, with a significant uptick in domestic and SME insurance. The company has already initiated operations in Tanzania and aims to establish a stronger presence in the country by 2024, with plans to enter the Ugandan market by 2025.