By Shadrack Nyakoe
Small and Medium-Sized Enterprises can now access affordable insurance services for extensive protection of business assets, mitigation of risks, employee health and seamless business continuity. This bundled insurance innovation, dubbed Linda Biz, is the result of a partnership between Absa Bank Kenya and Old Mutual Kenya.
Linda Biz, a first-of-its-kind comprehensive insurance product in the market, will offer assets, medical and life insurance in a holistic solution, addressing specific risks faced by SMEs, ensuring they can build resilience and continue thriving in today’s dynamic business landscape.
Speaking during the launch of Linda Biz, Absa Bank Kenya MD and CEO Abdi Mohamed underscored the need to invest in the SME sector, which continues to be underserved by insurance solutions, ensuring their comprehensive risk management and financial stability and access to credit.
“At the heart of our Bank is the SME sector, which accounts for 30 per cent of the GDP of our economy. This strategic partnership is anchored on our mutual goal to introduce customized and bespoke insurance solutions that directly address the unique requirements of our SME customers. A key focus is on simplifying SMEs’ access to insurance solutions and driving sustained growth to ensure long-term success and resilience of our customer while also supporting efforts to drive insurance penetration in the country,” said Mohamed.
Among other benefits, Linda Biz offers insurance for losses against fire, political violence, riots and strikes, floods, business interruption, burglary, loss of money and theft by servants.
It also covers employees of the business against injury, disablement or death (WIBA).
The solution also features comprehensive medical insurance with inpatient, outpatient, dental and optical and maternity cover options with attractive benefits such as hospital cash benefits and lifetime cover.
Additionally, Linda Biz offers holistic life insurance cover that pays a lump sum to the insured following death, disability or diagnosis of a critical illness.
On his part, Old Mutual Group CEO Arthur Oginga reiterated Old Mutual’s commitment to support SMEs, underscored by the launch of the partnership, saying, “We are thrilled by the launch of this pioneering partnership designed to empower Small and Medium Enterprises (SMEs) across Kenya. SMEs form the backbone of our country’s economy and as such, need enhanced support from financial service providers to derisk their businesses. Linda Biz introduces a comprehensive suite of insurance products uniquely tailored to meet the specific needs of SMEs, ensuring they can thrive in today’s dynamic business landscape.”
“Among many other benefits, this seeks to address issues affecting SMEs including asset protection, employee health and business continuity”, he added.
According to the World Bank, SMEs account for most businesses worldwide and are important contributors to job creation and global economic development, representing about 90% of businesses and more than 50% of employment worldwide.
Formal SMEs contribute up to 40% of emerging economies’ national income (GDP).
The Kenya Bankers Association 2021 Micro, Small, and Medium Enterprises Survey Report notes that the sector employs more than 15 million people and contributes about 30% to the GDP.
This makes it a key sector in the growth of the Kenyan economy.