The low rate of insurance penetration in Kenya has been a challenge over the years with the penetration rate currently being at 2.43%. In a bid to deal with this challenge, insurance companies have put in place various strategies to make their product offering more appealing to the target market. This study’s objective was to determine how micro-insurance is being used a strategy to enhance insurance penetration in Kenya. The research adopted cross sectional descriptive survey as a research design. Data was collected by use of semi-structured questionnaires that were emailed to operation managers of 14 insurance companies that deal with micrinsurance in Kenya. The collected information was analysed via descriptive statistics and content analysis, where use of percentages, mean and standard deviation was applied. The data was tabulated and classified in order to achieve deductions and inferences. Some of the micro-insurance strategies that were used to enhance its penetration by the insurance companies in this study included financial literacy education, use of technology, improved customer service, innovation and product differentiation and availing affordable and flexible premium payment modes. The study established that with proper implementation of micro-insurance strategies, this class of insurance played an important role in enhancing the penetration of insurance. The study’s recommendation is that insurance companies should form more partnerships in order to onboard affordable channels of micro-insurance distribution that will lead to enhanced micro-insurance consumption. The policy makers should also be more supportive of micro-insurance by putting in place policies that encourage the invention of innovative micro-insurance products.

show more