UAP Old Mutual to offer financial solutions to residents’ groups
- Among these is a digital last expense cover of up to Ksh500,000
Additionally, members to benefit from financial literacy program and various financial solutions tailored for individuals and SMEs
Over 250,000 members of residents’ associations countrywide stand to benefit from a partnership between the Kenya Alliance of Resident Associations (KARA) and UAP Old Mutual Group.
KARA is the umbrella body for over 1,300 resident associations in Kenya with over 0.25 million members across the country.
Old Mutual Life Assurance Company and Faulu Insurance Agency, a subsidiary of Faulu Microfinance Bank, which is part of UAP Old Mutual Group, have signed a Memorandum of Understanding (MoU) with KARA, to offer the latter’s membership various financial solutions tailored for individuals and SMEs.
KARA members will also benefit from a financial literacy program supported by UAP Old Mutual under the partnership.
Among the products is a last expense cover ranging between Ksh 50,000- Ksh 500,000 for KARA members and their loved ones, with premiums starting as low as Ksh600 up to a maximum of Ksh5,667 per annum.
The digital cover can be purchased via a mobile phone app and is among products to be rolled out under the partnership. Faulu Insurance Agency will oversee the marketing of the cover with Old Mutual Life Assurance Company underwriting the product.
Apart from the principal member, the cover may include a spouse, children, parents and even parents-in-law. For example, for a last expense cover of Ksh100,000, the member pays annual premiums of Ksh1,140 for the nuclear family and Ksh1,224 for a parent. Claims are payable within 48 hours after death notification.
The partnership will also see the parties collaborate in developing other products tailored for KARA membership, conduct financial literacy and awareness programs and other joint activities at national and county level. KARA is the umbrella body for 1,300 resident associations.
KARA Chief Executive Officer Henry Ochieng hailed the partnership saying the organisation’s members will greatly benefit from access to innovative financial solutions.
“This partnership fits in well with KARA’s value system at the core of which is our members’ welfare. As a responsible society, we also seek to provide financial options to help cushion our members from financial shocks arising from unforeseeable events such as death,” said Mr. Ochieng.
UAP Old Mutual Life Business Group Managing Director Jerim Otieno said KARA members will gain from financial knowledge delivered through webinars, articles and other materials sponsored by the company.
“We are delighted to be partnering with KARA to collaborate on areas of mutual interest and specifically, create financial solutions that meet the unique needs of KARA members,” said Mr. Otieno.
He added that financial literacy is crucial in empowering individuals and families to make the right decisions regarding risks. “This partnership will also build on our commitment to promoting financial inclusion in the society.”
On his part, Faulu Bank CEO Apollo Njoroge said the institution will target to grow uptake of the various products to be developed under the partnership. The Bank launched an automated bancassurance system in February this year at a cost of Ksh20 million.
“Bancassurance is an important part of our business. With the new system we are able to sell a wide range of products through our network of 60 branches countrywide. We are targeting to enlist at least 100,000 members from the KARA network within the first six months,” explained Mr. Njoroge.
He added that since the system went live, Faulu has been enrolling at least 1,500 bancassurance clients each month.
Bancassurance involves the sale of insurance products and services through banks and microfinance institutions.
Under the MoU, UAP Old Mutual Group will also sponsor KARA events including the Annual Resident Associations Excellence Awards and the National Resident Associations Summit.