The level of insurance penetration in Kenya is way below the global average. According to a 2020 report by the Central Bank of Kenya (CBK) insurance uptake in Kenya is only at 2.4%, while the global average is 7.2%.
It is this glaring gap that digital insurer mTek sought to bridge when it launched in 2020. The insurtech startup has gained traction over time, providing a platform that allows customers to purchase insurance, compare Insurance Policies and file claims directly through their smart devices.
As company CEO Bente Krogmann notes, this unique approach to insurance services has set the company apart as users across the country are able to access the services.
“mTek came into the market to address the issue of transparent, easily accessible and affordable insurance. In addition, we saw a need to reach underserved populations through insurance-focused technology. The other gap was no insurer was offering a fully-fledged digital solution which users can utilise from whichever part of Kenya they are at without having to fill out some paperwork,” said CEO Bente Krogmann.
Krogman further says that the requirement of too much paperwork inhibits insurance uptake. The paperless approach has simplified uptake while making it fast.
“We found that the number of documents required to sign up for an insurance product were too many, hence discouraging conversion. As a result, we created a platform that is easy to understand, fast and simple to understand and in the times of COVID-19 able to provide users a fast turnaround time when it came to claims.”
The company was self-funded at the beginning but has brought on board investors who have come in handy its expansion plans. The CEO said it was not easy to convince underwriters of the platform’s benefits but this has changed over time.
“Once they saw the user-friendliness of the platform, they quickly agreed to our proposal which also helps them reach more Kenyans,” said Krogmann.