The impacts of mobile insurance and microfinance institutions (MFIs) in Kenya

Journal of Banking and Financial Technology - Tập 4 - Trang 95-110 - 2020
Hailu Abebe Wondirad1
1College of Business and Economics, Bahir Dar University, Bahir Dar, Ethiopia

Tóm tắt

This paper investigates how mobile insurance (M-insurance) works and its impact on the customer, stakeholders, and microfinance institutions (MFIs) in Kenya. This study is based on a literature review and a critical analysis of Kenya’s M-insurance market. A case study approach is used to explore the impact of M-insurance on MFIs’ Performance focusing on Kenya’s microfinance industry. The research is conducted through the analytical lens of microfinance. Africa has 600 million mobile subscribers from which, 44 million are insurance. The global survey indicates in 2014 M-insurance active clients reaches 6.1 million with active rate growth between 44.9 and 263%. Sub-Saharan Africa has the largest proportion of the M-insurance market and growing tremendously every year. Kenya has demonstrated the lion share of this market which has 3.5 insurance market penetration rates. The paper shows that both models (strategic and transactional) and both products (loyalty and paid) are practiced in Kenya’s M-insurance market. This paper reveals that M-insurance has a positive significant impact on MFIs performance (outreach and portfolio quality). Furthermore, the result indeed demonstrated that M-insurance has deeply improved investment, earnings, and access to finance for MFIs’ clients. Finally, the study looks into the future of M-insurance and MFIs and concludes that the next scalable and profitable market in Kenya is M-insurance; MFIs ought to partner with mobile network operators, insurers and other stakeholders to be financially and socially sustainable.

Tài liệu tham khảo

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