Carrier due diligence
We evaluate the financial strength ratings, claims history, and regulatory standing of available insurance carriers before recommending any wrapper product to a client.
Service
Can a contractual structure protect your capital from market drawdowns?
Insurance-based investment wrappers provide defined capital protections that standard portfolio construction cannot replicate.
How insurance wrappers work as protection instruments
A wrapper is a legal container, not just a tax label — and its contractual protections are distinct from market-based hedging.
An insurance wrapper — typically a bond or unit-linked life insurance structure — places a portfolio of underlying assets inside a contractual shell issued by a regulated insurance carrier. The key protection element is the capital guarantee clause: depending on the product, the insurer contractually commits to returning a defined percentage of invested capital (commonly 80–100%) at maturity or on death of the policyholder, regardless of how the underlying assets have performed. This means a portion of the investment is insulated from mark-to-market volatility. In the Kenyan regulatory environment, certain wrapper structures also confer estate planning and asset-segregation benefits that are difficult to replicate through pure investment accounts. Codingcanvasq advises on product selection, carrier due diligence, and ongoing monitoring of wrapper performance.
What to expect from a wrapper advisory engagement
From carrier selection to annual reviews — a structured process with defined milestones.
Product matching
Capital guarantee level, investment term, underlying fund universe, and liquidity provisions are matched against the client's specific protection objectives and time horizon.
Onboarding support
We coordinate the application and KYC documentation process with the carrier, reducing administrative burden and ensuring correct policy structure from the outset.
Annual wrapper review
Each year we review the wrapper's performance, the carrier's financial health, and the client's updated objectives — recommending switches or top-ups where the case is clear.
Limitations you should understand before proceeding
Insurance wrappers carry costs and illiquidity that must be weighed against their protection benefits.
Insurance wrappers are not suitable for all investors. They typically carry annual management charges from the carrier (ranging from 0.75% to 1.5% per annum in the current Kenyan market), plus adviser charges where applicable. Early surrender — withdrawing before the policy's defined term — commonly results in surrender penalties that can erode the capital guarantee. Wrapper structures are therefore most appropriate for capital that the client does not require for liquidity in the near term, usually a minimum horizon of five to seven years. Codingcanvasq does not receive commissions from insurance carriers; our advisory fee is charged directly to the client and disclosed in writing before engagement begins.
“I had heard of bond wrappers but assumed they were only accessible to institutional investors. Codingcanvasq showed me that a wrapper with a 90% capital guarantee was achievable at my asset level, and walked me through the carrier's financials so I could make an informed decision rather than accepting a sales pitch.”
Samuel Odhiambo, Private Client, Mombasa
Explore which wrapper structure fits your capital base
A 45-minute consultation will establish whether an insurance wrapper is appropriate and which carriers merit consideration.