Co-designing Microinsurance for Chamas
Industry: Insurance, Finance
Category: Gender-intentional products, pro-poor insurance
Service: Ethnographic research, participatory design, A&B Testing
Date: Ongoing
To support leaders in developing financial solutions to address the most pressing challenges facing low-income households and underserved groups such as women and youth; KUNGU LABS was called upon to explore and test the place of chamas as a platform for the uptake of microinsurance.
Challenge
Understanding that affordability is still a big concern to most insurance providers and customers, who place a premium financing model which will enable customers to pay a premium based on their earning cycles (daily, weekly, monthly, etc) as opposed to the full annual amount paid upfront. Apart from affordability, trust is the single most important determinant of whether or not people take insurance. Yet chamas could be a platform to address these concerns.
It is estimated that about 28.7% which translates to about 7.8m Kenyans subscribe to such groups (FinAccess Household Report, 2021). These groups are much more popular among women in low-income households and at most times are responsible for their financial development.
Solution
The four-month project combines ethnographic research and Human-Centered Design (HCD) approaches.
Design Challenge #1: understand chama membership dynamics, health needs, and coping mechanisms
What we are doing: Exploratory research using one on one interviews, participant observation, and focus group discussions. participatory design sessions with chama groups.
Design Challenge #2: co-design a gender-intentional and pro-poor microinsurance product
What we are doing: Participatory design sessions with chama groups in 5 major cities/towns, ideation with stakeholders, and A&B testing.
