Absa Bank Kenya has partnered with Old Mutual Group to provide a comprehensive insurance solution for Small and Medium-Sized Enterprises (SMEs).
The small business owners can now access affordable insurance services that will offer extensive protection for business assets, risk mitigation, employee health coverage, and seamless business continuity.
In a statement, Absa Kenya said the innovative bundled insurance, dubbed Linda Biz, will offer asset, medical, and life insurance in a holistic solution.
“Linda Biz, a first-of-its-kind comprehensive insurance product in the market addressing specific risks faced by SMEs, ensuring they can build resilience and continue thriving in today’s dynamic business landscape,” Absa said in a statement.
Linda Biz will offer insurance for losses due to fire, political violence, riots and strikes, floods, business interruption, burglary, loss of money, and theft by employees. It will also provide coverage for business employees against injury, disablement, or death (WIBA).
Additionally, Linda Biz features comprehensive medical insurance with inpatient, outpatient, dental, optical, and maternity cover options, along with attractive benefits such as hospital cash benefits and lifetime cover.
The Linda Biz will also provide holistic life insurance that pays a lump sum to the insured in the event of death, disability, or diagnosis of a critical illness.
Absa Bank CEO on investing in SMEs
During the launch of Linda Biz, Absa Bank Kenya MD and CEO Abdi Mohamed emphasized the importance of investing in the SME sector, which remains underserved by insurance solutions.
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He highlighted that such investments are crucial for ensuring comprehensive risk management, financial stability, and access to credit for small and medium-sized enterprises.
“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,” said Mohamed.
“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.”
Old Mutual CEO Oginga Speaks on Small Businesses
Old Mutual Group CEO Arthur Oginga on his part reaffirmed the company’s commitment to supporting SMEs, as underscored by the launch of the partnership.
He stated that SMEs are the backbone of the country’s economy and emphasized the need for enhanced support from financial service providers to help de-risk their businesses.
“We are thrilled by the launch of this pioneering partnership designed to empower Small and Medium Enterprises (SMEs) across Kenya,” he said.
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“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.”
About Small Businesses
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.
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