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Linda Jamii -- Changamka Microhealth Ltd

About the Project

Project Name: Linda Jamii -- Changamka Microhealth Ltd
Type of Facility Project: Microinsurance innovation grantee
Country of Operation: Kenya
Region: Africa
Sub Topics: Business viability, Data analysis and processing, Promotion, Product development, Retailers, Mobile network operators, Partnerships, Demand, Composite products, Value-added services, Savings-linked, Health
Type of Risk Carrier: Regulated insurance company
Type of Distribution Channel: Kiosks

Organizational Overview

Changamka Microhealth (CMH) is a Kenyan integrated health finance company providing financing mechanisms for delivery of affordable healthcare to the low-income market using innovative technologies such as mobile phones and smart cards.


Project Description

Changamka Microhealth (CMH) is a Kenyan integrated health finance company providing financing mechanisms for delivery of affordable healthcare to the low-income market using innovative technologies such as mobile phones and smart cards. Changamka (through subsidiary Changamka Microinsurance Ltd) partnered with Britam and Safaricom to form a consortium. Together they delivered a composite health care cover called Linda Jamii – protect your family. Consortium Members: British-American I...READ MORE


The project targets 280,000 individuals, 85 per cent of whom are between Living Standard Measure 1 and 8. The project will be pilot tested in the Kiambu County, a peri-urban area bordering Nairobi.

The typical target household consists of seven members. Household members are typically secondary school educated and run small businesses or have small plots of agricultural land.

Research shows that about half of the households save from their income. Health is a major concern as typified by the following comment: “for me health comes first then my family, because if I’m sick, I am unable to work and support my family.” 


Learning Agenda

  1. What is the value proposition of the outpatient saving + insurance coverage for clients?
  2. Does linkage with savings address the affordability constraint? Which segment is benefiting the most from the installment payment facility?
  3. What marketing strategy is effective in promoting saving behaviour?
  4. Does access to MPESA payment improve demand? Is phone registration attractive to clients?

Project Status

Key Performance Indicators


4.12.2012 - 14.01.2014

Received subscriptions (no of proposed members)


Converted subscriptions (no of insured members plus no of saving uninsured members)


Conversion rate


Insured lives at the end of the period (no of insured members)*


Policies in force at the end of the period


Full (KES 12,000 cover) policies in force at the end of the period


Number of partial policies (KES 6,000 cover) expired during the period**


Number of non-activated policies for which clients still save at the end of the period


Share of insured members with full, one-year policy activated


Share of insured members that paid lump sum at once to activate full, one-year policy***


Share of insured members that paid lump sum at once to activate partial, half-year policy***


Share of non-converted (saving) members who made more than one contribution****


Number of inpatient claims over the period


Number of outpatient claims over the period


Claims ratio (claims paid / premium received)


* Upon payment of half or full premium amount

** Due to non-payment of the full premium

*** The remainder of the clients used the savings option to save up to pay for the premium

**** These are all the policies that are not yet converted because half or full premium was not received

Average time and number of transactions required to save the 6,000 KES premium

Average time and number of transactions required to save the 12,000 KES premium

Project Updates
As of January 2014 In November 2012, Changamka partnered with insurer Britam and mobile network operator Safaricom to launch Linda Jamii on a national scale. Identifying the target market Health care exerts the most financial pressure on families in the lower end of the market given that they have little ability to absorb risk. They therefore form a key market for health insurance. Changamka and its partners decided to focus on those who fall in the living standard measures (LSM) catego...READ MORE

Project Lessons

On savings behaviour Despite initial take-up it is difficult to sustain saving behaviours. Many clients paid the premium in lump sum. Those who saved often contributed twice or three times instead of systematically save small amounts. Most of the partially insured members did not manage to keep saving to get the full KES 12,000 cover; hence their policies lapsed after 6 months. Changamka believed that this was due to a lack of product support and information...READ MORE
On distribution As soon as the channel sees the business case, the enrolment increases steadily. It took Changamka more than year to show the value of Linda Jamii to Uchumi retail channel. Uchumi has kiosks in its supermarkets with a franchisee selling various financial services in main locations and just Linda Jamii in other settings. The traffic with the kiosks is substantial; up to 300 persons visit it per day. However, people do not buy Linda Jamii at fi...READ MORE
On promotion Visuals need to be clearly identifiable with the product and benefits. Originally the promotional materials focused on the ease of registration through mobile phones and therefore used an image of a mobile phone. It was hoped that this would differentiate the product from traditional insurance and create a buzz. However, many people misunderstood the promotions for mobile phone advertisements. As a result, Changamka decided to redesign the mater...READ MORE
On client value It is possible to offer significant client value through a mobile health insurance product. Linda Jamii’s value was articulated by non-clients in interviews, who perceived the coverage vs. price to offer a solution for many of their families’ health care needs. Existing clients also had generally positive perceptions of the product’s cost vs. coverage mix. Of five key aspects of access to care, existing clients noted that Lind...READ MORE
On viability The most important recommendation to improve viability is better data quality. The actuarial review of the product highlighted some of the difficulties in making strong recommendations on a health insurance product when data quality is poor and inconsistent.  As a result, it is important to consider that the principal recommendation of the review was to improve data quality, in particular: registration of initial policy purchase a...READ MORE
On health care network management Data concerns make analysis difficult to implement regularly and significantly hinder measurement of usage and detection of bad practices on the part of medical providers. Many data quality concerns emerged, including inconsistent categorization of diagnoses across the network, and problems with keeping user data up to date.  These data problems make monitoring difficult, and leave the door open for hospitals ...READ MORE
Project page contributor/s:  Zacharia Oloo and Solomon Omotto (Changamka) and Michal Matul and Alice Merry (The Facility)
Date of last update:  January 2015