Co-operative Insurance Company: The CIC Insurance Group comprises CIC General Insurance, CIC Life Assurance and CIC Asset Management.
The group is owned by 3,878 share-holders, majority of them cooperative societies, with Co-operative Insurance Society Limited (CIS) as its strategic shareholder with a 74.3 per cent stake and individual investors contributing the remaining 25.7 per cent.
CIC was listed on the Nairobi Stock Exchange in mid-2012 by introduction. The firm, which has been in operation for the past 33 years (for 20 years as Cooperative Insurance Services), is the market leader in providing insurance services to the cooperative movement and low-income market segments in Kenya.
As a composite Insurance company offering a wide range of products, such as general insurance, life assurance, pension, medical and asset management services, CIC now occupies the second position in market share (as of 2012) in the local insurance industry.
With the gross premium income growing to Kshs6.7 billion ($78.8 million) in 2011, up from Kshs4.6 billion ($54.2 million) in 2010 and 1.3 million clients, CIC ranks among the most successful insurance companies in Kenya and is the only thriving and surviving cooperative insurer in Africa. The company plans to expand operations to South Sudan, Rwanda, Malawi and Tanzania.
The firm’s assets rose to Kshs1l.1 billion ($130.6 million) in 2011 from Kshs7.5 billion ($88.3 million) in 2010 and profit before tax grew by 30 per cent from Kshs605 million ($7.12 million) in 2010 to Kshs787 million ($9.3 million) in 2011.
In the 2011, CIC posted a 65 per cent increase in shareholders’ funds to Kshs4.3 billion from Kshs2.6 billion the previous year. Liquid investments grew by 65 per cent also from Kshs3.5 billion (41.2 million) to Kshs5.8 billion ($68.24 million).
CIC recently launched M-Bima, an insurance premium payment instrument that rides on mobile money transfer platforms such as M-Pesa in a bid to reach the mass market.
Policy holders with the Group can now remit as little as KShs20 ($0.2) premium payment daily through their cell phones. Other products targeting the micro sector are the Biashara Salama policy offering cover against fire and theft for small and micro traders, Jilinde Personal Accident policy, a micro-personal accident plan, jikinge Plan for security guards and Jamii Salama, a cocktail product for families with death, funeral and accident covers.
In future, CIC intends to use the agency model so that even the shopkeepers in the village will sell insurance and payments can be done by phone.