Jubilee Group and FSD Africa have partnered with seven insurance technology companies to develop and test affordable insurance products for underserved Kenyans, targeting small businesses, informal workers, farmers and low-income households as the industry seeks to address barriers to formal coverage.
The initiative will begin with an eight-week product co-creation process, followed by joint pilots in Kenya from November 2026. The participating firms are Dukatech Solutions, Aura Insure Technologies, Inclusivity Solutions, DPE, Fiinovate, Agrails and Ibisa Network, selected through a competitive process from the BimaLab Africa Insurtech Accelerator alumni network.
The partnership comes as limited insurance coverage leaves many households and businesses exposed to financial shocks. Small and medium-sized enterprises (SMEs) are particularly vulnerable because an illness, damaged equipment, extreme weather event or interruption to business can quickly affect cash flow. Without appropriate cover, recovery may depend on personal savings, borrowing or support from family and business networks.
East Africa has more than 10 million SMEs, which account for over 70% of jobs, according to figures cited by the partners. Yet insurance penetration among these businesses averages about 1%. The gap represents both a financial-inclusion challenge and a potential market for insurers, provided new products can meet customers’ needs at prices and through distribution channels they can sustain.
The programme will focus on three areas: low-cost bundled and embedded insurance, protection tailored to SME ecosystems, and wellness models that connect customers to health and care services. Jubilee’s J-Hub innovation and technology unit will coordinate the work, combining the insurer’s product development and distribution capabilities with the participating companies’ technology and specialised market approaches.
The emphasis on distribution is significant. For many lower-income customers and small businesses, insurance can remain inaccessible not only because of premiums but also because of complex policy terms, unfamiliar claims processes and limited access to formal financial services. Products embedded in existing transactions, business networks or digital services could reduce some of these barriers, although their effectiveness will depend on whether customers understand the cover and can make claims when needed.
Jubilee Group Deputy Group CEO Juan Cazcarra said the partnership would allow the insurer to test different products and distribution models with customers before expanding the solutions that demonstrate demand and commercial potential.
For FSD Africa, the initiative builds on BimaLab’s work supporting insurance innovation across the continent. The accelerator has supported more than 135 startups in 28 African countries, according to the organisation, helping insurtech firms develop solutions and connect with insurers, regulators and potential investors.
Elias Omondi, Principal for Sustainable Insurance at FSD Africa, said the challenge was not simply to create more insurance products but to deliver cover at affordable prices through channels customers already use. The Jubilee partnership is intended to bring established insurance capacity together with smaller technology firms that may be better positioned to address specific customer needs.
The commercial test will be whether the proposed products can balance affordability with viable underwriting. Lower premiums alone will not guarantee broad adoption if customers are uncertain about what is covered, while insurers must price risks carefully enough to meet claims and maintain sustainable operations. Digital delivery can reduce some administrative and distribution costs, but it does not eliminate the need for clear terms, appropriate risk assessment and effective claims management.
For SMEs, accessible insurance could help protect working capital and support continuity after an unexpected loss. For farmers, products designed around agricultural risks could offer a means of managing some of the financial consequences of weather-related disruptions. For households and informal workers, affordable health-related or bundled protection could reduce exposure to expenses that might otherwise undermine income and savings. The actual benefits, however, will depend on the coverage offered and the accessibility of claims.
The initiative also gives Jubilee an opportunity to broaden its customer base and connect insurance with its wider financial-services offering. The company has said successful solutions could eventually be expanded into other East African markets, although that will depend on pilot results, customer uptake, regulatory requirements and the economics of delivering each product at scale.
The November pilots will therefore be an important step in determining which approaches can move beyond product development into sustained commercial use. Uptake, renewal rates, claims experience, customer understanding and distribution costs will help establish whether the new models can reach underserved groups without compromising consumer protection or the financial viability of the products.
For Kenya’s insurance sector, the partnership reflects a shift towards testing products in real market conditions rather than relying on product innovation alone. Its wider significance will depend on whether the collaboration can turn digital capabilities and insurer distribution networks into affordable, trusted protection for customers who have historically remained outside formal insurance.
