Evolution of Bancassurance Toward Omnichannel, Embedded, and Personalized Distribution: Evidence from Kenya and Global Markets (International Journal of Marketing Strategies)

Summary

• Bancassurance gross written premiums in Kenya grew from KES 19.5 billion in 2019 to KES 35 billion in 2023, representing a growth of 79.4%.p.3
• Kenya's overall insurance penetration reached 2.44% in 2024, with total industry premiums of KES 395.30 billion.p.3
• Digital channels accounted for 28% of non-life insurance distribution in European bancassurance in 2022, compared with 14% in 2017.p.3
• Digital insurance sales in Australia increased from 16% of premiums in 2019 to 31% in 2023.p.3
• The Asian embedded-insurance market is projected to reach approximately US$270 billion in gross written premiums by 2030.p.3
• In 2024, 98% of surveyed commercial banks in Kenya had adopted mobile applications or USSD services, while 79% had adopted APIs.p.14

Key insights

1. Combining the right product offer, timing, and distribution channel can generate conversion propensities almost 20 times higher than unsegmented approaches.p.3
2. Embedded insurance transforms traditional technology adoption by bundling coverage directly into primary transactions via APIs, creating low-friction customer experiences.p.4
3. In automated and zero-click distribution models, customer trust shifts from interpersonal staff relationships to algorithmically mediated trust built on transparent data governance.p.5
4. Digitalization of policy administration and procurement functions accounted for 84.2% of variation in operational performance among Kenyan insurance companies.p.8
5. Transitioning from multichannel to omnichannel distribution requires connecting channels across the full policy lifecycle rather than focusing solely on initial digital sales.p.11
6. Private health bancassurance products can complement public universal health coverage architectures by offering top-up benefits and leveraging bank payment networks.p.13