Minet Kenya, a provider of risk management, insurance and reinsurance brokerage services, has launched insurance premium financing services, enabling the easy payment of premium in instalments. This is in partnership with microfinance company Momentum Credit.
Minet Kenya CEO Sammy Muthui said individuals and entities have to pay a deposit equivalent to 20% of the insurance premium to activate the service, reported Capitalfm.
“In these rapidly changing times, we have been thinking about our clients and the challenges they are facing as a result of the coronavirus pandemic. Recent reports indicate that the pandemic has forced many Kenyans to cut down on their household expenditures including insurance premiums.
“The unveiling of this insurance premium financing solution in partnership with Momentum Credit at this time reflects joint our commitment to providing financial relief to our customers as they deal with the effects of the pandemic,” Mr Muthui said.
He added that the premium financing solution will mean that clients will not have to liquidate their assets or spend money to settle premium payments, especially during this difficult time.
It is mandatory for premiums to be paid upfront by policyholders as required by the Insurance Regulatory Authority.
“The cash-and-carry rule in effect at the moment requires that the insured pays the premium in full before a policy is activated. However, many Kenyans are not able to pay their insurance premium upfront as required by the law. This financing solution will now make it easy for them to meet this requirement,” Mr Muthui added.
Payments by customers to Minet will be spread over an agreed period of between one and 11 months and Minet will act as the billing and collecting agent.