NAIROBI, Kenya – In the midst of rising economic challenges, the demand for affordable education insurance in Kenya is growing significantly.
As insurance companies strive to meet this demand, they face the challenge of balancing affordability with comprehensive coverage, reshaping the landscape of education insurance in the country.
Recent economic changes, including increased taxation and the soaring cost of living, have led to a significant push for lower insurance premiums.
Customers are seeking affordable solutions without wanting to cancel their existing policies.
“We’ve seen customers who used to pay Sh30,000 per month now requesting a reduction in their premiums to maintain their coverage,” said Meshak Miyogo, Managing Director of CIC Life Assurance.
Initially viewed as a luxury for the wealthy, education insurance is now attracting a broader demographic, including low-income Kenyans.
CIC Life Assurance’s flagship product, Academia, exemplifies this trend. Premiums for Academia now start as low as Sh2,000 per month, making it accessible to a wider range of customers.
“From the age of 30, more people are investing in Academia, as securing their children’s education becomes a pressing reality for many Kenyans,” Miyogo noted.
CIC Life Assurance reports a 30 percent year-on-year increase in policy uptake, with education policies contributing 10 percent to the CIC Group’s revenue.
This positive trend is reflected across the industry, indicating robust growth for many life insurance firms.
However, traditional norms and economic disparities still hinder the widespread adoption of education insurance.
Urban areas show higher uptake due to better access to information and education, while rural areas lag behind.
Additionally, low-income earners often secure insurance only for secondary education, while those with higher purchasing power focus on tertiary and university education.
“Depending on the ability of parents, I have seen parents with higher purchasing ability focusing more on tertiary education and university, while those with less ability focus more on secondary education, paying about Sh3,000-4,000 a month,” added Miyogo.
The declining quality of public education is driving many urban parents to opt for expensive private schools, contributing to a 5.7 percent increase in private tuition costs, according to the Kenya National Bureau of Statistics.
Education insurance policies offer a crucial solution by providing long-term financial support for children’s education, giving parents peace of mind and ensuring their children’s educational future is secure regardless of economic fluctuations.
A common concern when considering education insurance is the possibility of recovering funds if one can no longer afford the premiums.
Miyogo emphasizes the importance of planning for school fees through education insurance, which is increasingly seen as a necessity.
“With the ever-increasing costs of children’s education, an education policy provides parents with peace of mind, ensuring their children’s education is secure no matter what the future holds,” he said.
