Leading medical underwriter AAR Insurance has introduced in the market a plan that now makes it possible for Kenyans to make monthly payments for health insurance instead of paying the full amount upfront.
This is a departure from the norm which made it mandatory for customers to make full payment of insurance premiums before they can be covered, serving as a barrier to entry for many Kenyans, a majority of whom cannot afford to pay upfront.
“The solution we are introducing fits well into the financial plan of many ordinary Kenyans. As a company, we are keen to lessen the financial burden on them by doing away with lump sum payments of insurance premiums and introducing manageable and staggered installments throughout the year,” said AAR Insurance Managing Director Nixon Shigoli.
Under the plan, only applicable to individuals or retail clients but not corporates, one will be required to pay a deposit equivalent to two months’ installments then make subsequent payments monthly for a period of nine months.
“We believe that this solution will not only make it convenient for our customers to purchase insurance, but also make it possible for many Kenyans to enjoy the benefits that come with having a medical cover,” he continued.
He added that this is part of the company’s contribution to increasing insurance penetration in the market which is currently below four percent.
This solution has been made possible through a partnership with Kenya Women and Finance Trust (KWFT). In addition, AAR Insurance has partnered with other Insurance Premium Financiers who offer premium financing over a maximum period of 6 months.
“We believe that this will be a great contributor to ensuring access of medical insurance and ultimately healthcare to all Kenyans,” concluded Shigoli.