Insurance plays a critical role in protecting people, families, and businesses from financial loss. Yet, in Kenya, many people still do not buy insurance. The industry is growing, but insurance adoption is low. At the same time, technology is helping transform how insurance is delivered and used. One key player in this change is Lami Technologies, an innovative Insurtech that is helping improve insurance uptake in Kenya.

Why Insurance Adoption in Kenya Remains Low

Despite efforts to grow the insurance sector, Kenya’s insurance penetration — the share of insurance in the economy — remains low at around 2.3%–2.6% of GDP. This is well below the global average of about 7%. This shows there is room for growth.

Here are the main reasons why insurance adoption is still limited:

1. Low Awareness and Understanding

Many Kenyans do not understand how insurance works. They see it as complex, costly, or not useful. This lack of awareness makes people avoid buying insurance policies.

2. Trust and Perception Issues

There are concerns around fraud, claim delays, and service quality in some parts of the industry. These experiences can discourage people from buying insurance.

3. Limited Reach and Distribution

Most insurance services are offered in cities, leaving rural and informal sector workers underserved. Traditional processes still involve lots of paperwork and visits to offices, which limits access.

How Lami Is Helping Transform Insurance Adoption

Lami is playing a key role in modernizing how insurance is offered and used as it is not a traditional insurer itself. Instead, it builds digital tools and platforms that make insurance easier to reach and buy for both businesses and consumers. Here’s how Lami is contributing:

1. Digital Insurance API for Easy Access

Lami provides a digital insurance platform and API that other companies can use to offer insurance directly to their users. Banks, e-commerce sites, fintech apps, transport platforms, and SACCOs can integrate Lami’s system to give insurance options at the point of customer interaction without heavy paperwork or long forms.

This innovation helps bring insurance to users who would otherwise have difficulty finding and buying insurance through traditional agents.

2. Partnerships Across Industries

Lami’s partnerships are widening insurance accessibility. For example:

• Transport and logistics platforms can offer transit and vehicle cover.
• Savings and credit groups (SACCOs) can provide members with tailored health, life, and business insurance.
  These collaborations help bring insurance into the everyday lives of many Kenyans. (Medium)

3. Affordable and Relevant Products

Lami works with underwriters to design insurance plans that suit local needs. This includes motor, health, personal accident, and insurance plans that are more affordable and flexible. Such products help address the cost barrier that keeps many people away from insurance.

4. Faster Processes and Greater Transparency

With digital tools, users can get quotes, issue certificates, and manage policies much faster than in traditional systems. This speed and ease help build trust and make people more willing to adopt insurance.

The state of insurance adoption in Kenya is an evolving story. While current penetration remains low, there are clear opportunities to grow the industry and make insurance a part of daily life for many more Kenyans. Digital technologies especially solutions from Lami are helping to overcome the traditional barriers of cost, complexity, and access. By continuing to innovate, educate, and expand partnerships, Kenya’s insurance sector can become more inclusive, trusted, and impactful.