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Bridging the insurance gap for SMEs in Kenya: Empowering your business’s future (PART ONE)

We know running a small or medium-sized business (SME) comes with a unique set of challenges, and one of the most significant hurdles you might face is the lack of proper insurance coverage. In our blog today, we’ll dive into the importance of bridging the insurance gap and how digital insurance solutions can transform your business’s future.

The numbers don’t lie: The state of insurance coverage for SMEs

The state of insurance coverage for SMEs is a stark reality in Kenya. Globally, 90% of businesses are small and medium enterprises (SMEs), and these SMEs account for a significant portion, approximately 80-90%, of businesses across the African continent. In Kenya specifically, SMEs are the backbone of the economy, contributing to 24% of the nation’s GDP and employing a staggering 93% of the entire labor force. However, what’s concerning is that despite their vital role, 20% of SMEs in Kenya had to close their doors permanently due to economic hardship exacerbated by the Covid-19 outbreak. Furthermore, Kenya’s insurance penetration rate stands at a mere 2.4%, a figure alarmingly low when compared to the country’s economic growth. These statistics paint a clear picture of the challenges SMEs face when it comes to insurance coverage in Kenya.

Amid these statistics, it’s evident that the insurance gap in Kenya is both substantial and concerning. Many SMEs are operating without the necessary insurance protection, leaving them exposed to the myriad risks and uncertainties of the business world. From property damage to liability claims and unforeseen events, these businesses often lack the financial cushion needed to recover swiftly from setbacks. In such a landscape, the power of insurance for your business becomes even more apparent and essential.

The power of insurance for your business

Picture this: You’ve poured your heart and soul into building your SME, and it’s thriving. But what if a fire breaks out in your office or a natural disaster strikes? Without insurance, you could face financial devastation that could take years to recover from, or worse, put your businesses at risk of closure.

Insurance plays a crucial role in safeguarding your dreams and hard work. It acts as a safety net, providing financial protection against unforeseen circumstances. Think of insurance as a business investment – one that secures your assets, protects your employees, and ensures your peace of mind.

Here are a few examples of how insurance has helped SMEs recover from unforeseen events

  • A small business owner was able to rebuild her store after a fire thanks to her property damage insurance.
  • A manufacturing company was able to continue operating after a product liability lawsuit thanks to its liability insurance.
  • A tech startup was able to cover the medical expenses of an injured employee thanks to its health insurance.

Digital insurance solutions

Gone are the days of tedious paperwork and long waiting periods for insurance approvals. Say hello to digital insurance – the modern, user friendly approach to protecting your SME.

Digital insurance leverages technology to simplify and expedite the insurance process. With just a few clicks, you can explore coverage options, get instant quotes, and purchase policies tailored to your business’s unique needs. No more lengthy phone calls or visits to insurance offices – everything you need is at your fingertips.

Not only is digital insurance convenient, but it also offers a level of flexibility that traditional insurance can’t match. You can customize your coverage, adjust policy limits, and even file claims online, making the entire experience seamless and efficient.

Benefits of digital coverage

When it comes to insurance, one size does not fit all – especially for SMEs with diverse needs. That’s where digital insurance shines. It offers a range of advantages that cater to the specific requirements of your business:

  • Tailored coverage and flexibility: With digital insurance, you can customize your coverage option to suit your SMEs operations, protecting physical assets, employees, and specific liabilities effectively.
  • Affordability and cost-effectiveness: Digital insurance providers leverage technology to streamline operations and reduce overheads, offering more affordable premiums for comprehensive coverage that won’t strain your budget.
  • Ease of accessibility: Digital insurance brings convenience to your fingertips, granting access to policies, claims status, and crucial information online, eliminating the need for waiting in line.
  • Fast and transparent claims process: Digital insurance companies employ advanced systems that expedite the claims process during critical times, ensuring swift and transparent assistance.

Remember, insurance is not just an expense; it’s an investment in the security and future of your SME. With digital insurance, you can access tailored coverage, enjoy cost-effective premiums, and have the support you need when it matters most.

So, take the next step and explore digital insurance solutions for your SME. Safeguard your dreams, protect your investments, and ensure the resilience of your business against any uncertainties that may come your way.

Together, let’s build a thriving and secure future for your SME in the vibrant landscape of Kenya’s business world. Happy insuring!

Contact Lami today to learn more about our digital insurance solutions for SMEs. We offer a range of coverage options to suit your specific needs, and our team of experts is here to help you choose the right policy for your business.

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