Bridge insurance knowledge gap to mitigate effects of future disasters

The Covid-19 pandemic has taught us that it is necessary to prepare for a rainy day. We have experienced firsthand how a health crisis can affect all sectors globally. Many people have been laid off, businesses have closed down and global travel has receded. Sadly, many lives have also been lost, as the cost of special medical attention skyrocketed.

One way of cushioning Kenyans against unseen tragedies is by deepening insurance coverage across different socio-economic classes.

Statistics show that as of 2019, only 18 per cent of Kenyans had a National Hospital Insurance Fund (NHIF) cover and that only one per cent had private medical covers.

Disheartening

Cumulatively, insurance coverage for all aspects including health, accidental fires and car accidents accounted for less than four per cent of the total population. These figures are disheartening.

Many people feel that insurance coverage is not a priority, primarily due to economic challenges.  The government has recently intensified efforts to implement the universal health coverage programme and have all Kenyans covered by NHIF.

 However, the elephant in the room remains the knowledge gap on insurance matters and the fact that the majority cannot afford to pay the premiums. There is need to sensitise the public on insurance matters.

 While traditional approaches made it seem a preserve of a few, the truth is that with the growing uncertainty and increased disasters, people will only be safe if they are covered. Lessons on insurance matters should start at an early age, from primary school level.

The players in the insurance industry should also be innovative with regard to the insurance solutions they provide to Kenyans. They should design packages that encompass everyone regardless of their economic status. 

The writer is an advocate of good governance and Risk and Insurance Consultant at Half-moon Africa Holdings.