Micro-insurance and Micro-Finance cover the same type of people. The conventional market for insurance is people who have money. They are basically trying to sell a promise to their customer. Close to 50 insurance companies and their low market penetration was what challenged Elvis Ackel to open Kenya’s first Micro-insurance company(Citadel). The main question was how to expand the insurance market.
Citadel targets the UN-insured but insurable person/people. The people that live between 300 to 500 Kenya shillings a day. “This is a very risky venture” as Elvis describes it. Being a social entrepreneur in the insurance market he mainly seeks to
- build knowledge
- build capacity and
- build awareness
The low income earners/Bottom of the pyramid are much more aware than the guy who sits in the office. The Insurance Regulatory Authority act on Micro insurance was basically made with this market segment in mind with the help of the Elvis.