Jubilee Insurance, a leading player in the East African insurance market, has launched an ambitious campaign dubbed “There’s living, and there is living free,” aiming to close the gap between complex insurance concepts and the everyday needs of customers across Kenya and the broader East African community. The initiative is set to run throughout the remainder of 2024 and into 2025, with a strong emphasis on enhancing financial literacy, empowering individuals to make informed decisions, and ultimately driving long-term economic stability in the region.

Addressing the Financial Literacy Gap

Financial literacy remains a significant challenge in East Africa, with large segments of the population lacking the basic knowledge needed to make informed financial decisions. The 2021 Global Financial Literacy Survey indicates that Kenya’s financial literacy rate is 38%, Uganda’s is 34%, and Tanzania’s is 40%. These figures are considerably lower than those seen in more developed regions, highlighting the urgent need for targeted educational initiatives.

In response to this challenge, Jubilee Insurance’s campaign seeks to educate the public on essential financial concepts, with a particular focus on insurance and investment solutions. By breaking down complex ideas into understandable, relatable information, the company aims to empower individuals to take control of their financial futures.

The Importance of Financial Literacy in Economic Growth

The lack of financial literacy in East Africa not only affects individual decision-making but also has broader economic implications. Individuals who are not well-versed in financial concepts are less likely to engage in savings, investments, or insurance, which can lead to economic instability. Furthermore, the inability to make informed decisions extends to health-related matters, impacting the effective management of healthcare costs and access to preventive care.

Jubilee Insurance CEO Julius Kipngetich emphasized the importance of addressing this gap, stating, “Our new initiative truly reflects our commitment to going beyond the usual role of insurance. We’re not just offering services; we’re sharing valuable insights that help people make smart choices for their health and financial well-being. Addressing financial literacy is crucial for driving sustainable economic growth and improving overall well-being.”

The Current State of Insurance Penetration in East Africa

Insurance penetration in East Africa remains low, with Kenya, Uganda, and Tanzania all reporting rates of less than 2% of GDP, according to the Insurance Outlook Report 2023 by Deloitte. This low penetration is reflective of the broader challenges related to financial literacy and economic resilience in the region.

The Global Finidex Report also reveals that only 41% of adults in these countries are financially resilient, meaning that less than half of the population is prepared to handle financial shocks. This lack of preparedness highlights the importance of initiatives like Jubilee’s, which aim to equip individuals with the knowledge they need to make informed decisions that promote wealth growth, achieve financial goals, and safeguard their health.

Jubilee Insurance’s Longstanding Commitment to Financial Education

With over 87 years of industry experience, Jubilee Insurance is well-positioned to lead the charge in enhancing financial literacy in East Africa. The company’s Group Head of Marketing and Corporate Communications, Caroline Ndungu, highlighted Jubilee’s dedication to passing on the knowledge and insights gained over decades of service.

“Financial literacy is crucial for securing a brighter future for individuals and communities across East Africa and beyond,” Ndungu stated. “We are committed to simplifying the lives of our customers and the broader community by making the complexities of insurance and investment more understandable and accessible.”

A Comprehensive Strategy for Regional Impact

The “There’s living, and there is living free” campaign will be rolled out across Kenya, Uganda, and Tanzania through a comprehensive strategy that includes community engagement, educational workshops, and targeted digital content. Jubilee Insurance’s Chief Operating Officer, Juan Cazcarra, expressed enthusiasm about the campaign’s potential regional impact.

“This campaign represents a significant investment in consumer education,” Cazcarra said. “We look forward to engaging with communities across Kenya, Uganda, and Tanzania as we empower individuals with the knowledge and tools they need to make informed financial decisions.”

The Role of Technology in Enhancing Financial Literacy

In a region where access to traditional financial education resources may be limited, technology plays a critical role in reaching a broader audience. Jubilee Insurance plans to leverage digital platforms, including social media, mobile applications, and online learning modules, to disseminate information and engage with consumers.

These digital tools will allow the company to tailor its messaging to different demographics, ensuring that the content is accessible and relevant to people from all walks of life. By utilizing technology, Jubilee aims to bridge the gap between urban and rural populations, making financial education more inclusive.

The Broader Economic Impact of Improved Financial Literacy

Improved financial literacy has the potential to drive significant economic growth in East Africa. As individuals become more knowledgeable about financial products and services, they are more likely to engage in activities that contribute to economic development, such as saving, investing, and purchasing insurance.

Moreover, increased financial literacy can lead to better health outcomes, as individuals are better equipped to manage healthcare costs and access preventive care. This, in turn, can reduce the burden on public health systems and contribute to a healthier, more productive population.

A Catalyst for Change in the East African Insurance Market

Jubilee Insurance’s campaign comes at a time when the East African insurance market is poised for growth. As more people gain access to financial education and begin to understand the value of insurance, demand for these products is likely to increase.

This growing demand presents an opportunity for the insurance industry to expand its reach and provide more comprehensive coverage to underserved populations. By leading the way in financial education, Jubilee Insurance is positioning itself as a catalyst for change in the East African insurance market.

The Future of Financial Literacy in East Africa

The “There’s living, and there is living free” campaign marks an important step forward in addressing the financial literacy gap in East Africa. However, the journey towards widespread financial literacy is an ongoing one, requiring continued investment in education, technology, and community engagement.

As Jubilee Insurance continues to roll out its campaign, the company remains committed to its long-term goal of improving financial literacy and economic resilience in the region. By empowering individuals with the knowledge they need to make informed decisions, Jubilee is not only securing its own future as a leader in the insurance industry but also contributing to the broader economic development of East Africa.

Conclusion

Jubilee Insurance’s “There’s living, and there is living free” campaign is a timely and necessary initiative that addresses a critical need in East Africa. By focusing on financial literacy, the company is helping to build a foundation for economic growth and stability in the region. As the campaign unfolds over the coming months, it will be closely watched as a model for how the private sector can play a vital role in driving positive social and economic change.

photo source: Google

By: Montel Kamau

Serrari Financial Analyst

19th August, 2024