CIC targets Saccos to increase insurance penetration

CIC Insurance Group is betting on savings and credit co-operative societies (Saccos) to increase insurance penetration, widen its market share and empower more people economically through its customer-centric services.

CIC Insurance Group CEO Nelson Kuria says the co-operative movement comprising of over 14,000 registered Saccos and a membership of over eight million offers the industry better opportunity to enhance financial inclusion through insurance services.

Mr Kuria, who addressed a forum of CEOs from various Saccos across the country in Naivasha town, said the co-operatives sector is faced with the risk of losing out, if they do not embrace change through strategic alliances and partnership.

Co-operatives can play active role in development by investing in every sector of the economy to boost wealth creation, food security and employment generation and hence contribute to poverty alleviation.

"Insurance is appropriately designed to meet the needs of co-operatives and can contribute to the development of the sector," he stated, urging co-operative leaders to sensitise their members on insurance issues.

Kuria also called on CEOs from various co-operative societies to work on networking and take part in activities that will make them more visible in the society as this will open up lobbying opportunities for them.

He regretted that despite the critical role played by insurance in cushioning people from risks, many Kenyans still view it as a forced purchase, which they only take when it is a precondition for access to certain services.

"Unlike other financial services which offer no meaningful returns on savings, insurance saves people from poverty brought as a result of everyday risks. It is a tool of equipping and securing people," he said. The co-operatives sector has mobilised a combined savings of $2.5 billion and employs over 300,000 people besides providing opportunities for self-employment.

"CIC appreciates that all these people require a secure and comfortable retirement. Through its Jipange Pension Plan, CIC Insurance Group will safeguard their future," noted Kuria.

Co-operatives are organised into service and producer entities and cut across various sectors, more prominently in agriculture, marketing, banking, credit, diary, fishing and transport.

Kuria said CIC is pursuing co-operative model of insurance, which is more successful in giving services to low-income population, adding, "Our unique concern for ordinary Kenyans has given us exceptional appeal to many people."

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