Nairobi, Kenya – Stima SACCO has launched a new insurance brokerage to elevate the sector.
The transformation of the Mpawa insurance agency into a brokerage is part of the Sacco’s revenue diversification model defined in its 2022-26 Strategic Plan.
Why Mpawa insurance brokerage
Speaking during the launch, Stima Sacco CEO Gamaliel Hassan said that the new brokerage license grants Mpawa the legal autonomy to represent the client rather than the insurer, as opposed to the agency, which limited the subsidiary to specific insurance partners.
Hassan noted that the insurance business is critical to supporting the Sacco’s core mandate of offering savings and credit solutions.
He emphasised that the brokerage subsidiary will not underwrite risks directly but will acquire and transfer insurance business to underwriters for a fee, ensuring the Sacco avoids the heavy capital requirements associated with primary underwriting.
“At Stima DT Sacco, our strategy is anchored on sustainability, empowerment, digitisation, and financial resilience. Mpawa is not an auxiliary offering; it sits at the heart of our ambition to create a comprehensive financial ecosystem for our members and stakeholders,” said Hassan.
Enhanced services for growing membership
The transition to Mpawa Insurance Brokerage offers immediate benefits to Stima Sacco’s over 241,000 members and the general public.
Key advantages of the new brokerage model include:
- Independent Advocacy: Unlike agents tied to specific carriers, Mpawa Insurance Brokerage will offer unbiased recommendations focused on the client’s specific needs.
- Wider Selection: The brokerage can now shop the entire market to compare a broader range of options, ensuring members get the most competitive rates.
- Claims Support: The brokerage will act as a professional advocate for clients during the claims process, ensuring fair treatment from insurers.
- Risk Management: Mpawa will provide expert risk assessment to identify coverage gaps for both retail and SME clients.
Building on a strong foundation,
Mpawa Insurance Agency was incorporated in May 2018 and licensed in 2019. It has since demonstrated robust growth, increasing premiums written from KES 147 million in 2019 to KES 267 million in 2021.
Backed by Stima Sacco’s asset base of KES 75.27 billion and a liquidity ratio of over 90%, the new brokerage is well-capitalised to compete in the regional market.
“This event is an important corporate milestone that requires strong visibility. It represents our evolution from a high-performing agency into a trusted, member-centric insurance solutions partner with a clear pathway for future growth”.
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