KUSCCO Ltd today launched KUSCCO Mutual Assurance, an insurance company licensed by the Insurance Regulatory Authority to operate as a life insurer in Kenya. The subsidiary targets individuals, groups, corporate companies and the Co-operative movement.

The subsidiary grew out of the Risk Management department which was a fund that gave SACCOs mutual protection against loan losses. The fund has been operational for over 25 years and has successfully managed the risks of over 1,700 SACCOs, leading to the new strategic expansion to the wider public. The diversification process began in 2016, when KUSCCO delegates approved a change in the By-laws, allowing for creation of subsidiaries. Since then, the Union has been growing existing underwriting business in readiness for an Insurance company.

Speaking during the launch, the KUSCCO Group National Chairman, George Magutu said that through innovative products tailored to meet the needs of the 14 million member co-operative movement, the company would turn-around the low market penetration and bring insurance inclusion to Kenyan Co-operators. “By offering value adding services, we are confident that we can influence co-operators to better manage risks by investing wisely in insurance policies,” he added.

Also present at the launch was George Ototo, KUSCCO Group Managing Director, who added that the company would respond to changing customer needs through research and development, to drive innovation and  disruptions, by offering personalized, affordable and flexible insurance policies. Further, he pointed out that efficient claims settlement systems would lead to an increased customer retention ratio.  “To keep in step with the competition, we will also remain focused on key overarching goals: growing top-line sales while boosting bottom-line profitability, as we increase insurance penetration to include the un-insured and under insured,” he said.