Insurance can build business resilience among female entrepreneurs when structured with the business at the centre of the product design.
Speaking while unveiling a partnership with Kayana, New Faces New Voices (NFNV) chairperson Caroline Armstrong-Ogwapit said there is a need to ensure that micro and small businesses, especially those that are women-led, are exposed to multiple risks that intertwine the individuals and the business.
"Insurance plays an important role in safeguarding these businesses against unforeseen events and NFNV has embarked on a journey to empower female entrepreneurs with the knowledge and tools necessary to leverage insurance for their business continuity and growth,'' Ogwapit said.
The two organisations under the Graça Machel Trust (GMT) intend to create a client-centric, innovative approach to help women-led businesses develop financial resilience.
NFNV Kenya has taken a significant step towards enhancing the financial and economic resilience of women-led businesses using insurance products for risk mitigation which enables small businesses to survive business shocks and therefore give them a solid platform to grow.
NFNV and Kayana convened a pilot group of women-led businesses to raise their awareness about the risks their businesses face and how to mitigate those risks.
The focus group concluded that insurance is not only a viable solution but one that is undervalued.
NFNV engaged multiple insurance companies in the long programme to ensure that the entrepreneurs’ needs are at the centre of the solution design.
According to Ogwapit, women entrepreneurs are an increasingly important pillar for economic stability, and it is crucial to sustainably address the challenges they face, especially in the current economic environment.
“Women-owned small businesses are helping to power Kenya’s small business boom and New Faces New Voices remains committed to ensuring women access the capital, resources and skills they need to build resilient businesses and create jobs to fuel our economy,” she said.
To improve women entrepreneurs' access to appropriate insurance solutions, she said they have engaged the financial sector to take a non-traditional insurance approach and develop cost-effective and protective coverage solutions against new and evolving risks and deliver them in a way that speaks to the entrepreneurs’ needs and aspirations.
According to a 2022 study by Viffa Consult titled "Doing Business in Kenya: Reflection of Women SMEs," only 26 per cent of women-led SMEs in Kenya have insurance coverage with only a minority of them having any business-related insurance.
Innovative insurance solutions responding to the specific needs of women-owned enterprises can play a significant role in building their resilience and ensuring sustainable growth.
"The ultimate objective of this collaborative initiative was to facilitate the co-creation of a gender-responsive insurance product specifically designed to address the unique needs of female entrepreneurs in Kenya,'' Kayana co-founder Patricia Okelo said.
The session brought together key representatives from insurance companies, including Britam, Prudential, Liberty, and Madison Insurance, alongside KCB Bank's Innovations team to share their expertise in crafting and adapting financial products.