Insurance
From The Report: Kenya 2016
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In recent years, insurance penetration and accessibility have been improving steadily in Kenya. The middle class is growing, more Kenyans have disposable income and there is potential for new demand for insurance. There is rapid urbanisation, giant infrastructure projects, new energy schemes and growing industry. In 2013 life insurance penetration stood at 1.2% of GDP and general insurance was about twice that, bringing the total to 3.44%. However, this measure of insurance penetration dropped to 2.93% in 2014 after GDP was rebased with a 25% increase. Life assurance gross premium income was KSh56.5bn ($621.5m) in 2014, up from KSh44.3bn ($487.3m) the previous year, and this growth trend continued into the first quarter of 2015.

This chapter contains an interview with Sammy M Makove, Commissioner of Insurance and CEO, Insurance Regulatory Authority.

Articles from this Chapter

Overview

Building greater assurance: The insurance sector is in a state of flux, as both domestic and foreign firms consolidate and expand
OBG
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The insurance business in Kenya is profitable, but it is not necessarily easy. Kenya represents one of Africa’s most well-developed and best-regulated insurance markets, with formidable historic growth and even better near-term prospects, but it is fragmented and competition is tough. There are increasing regulatory capital requirements on the horizon, and there is growing scope for consolidation. Foreign and local capital is likely to continue to flow into the sector, lured not only by the great…

Analysis

Banking on security: Collaborations between banks and insurance companies are on the increase and are helping drive growth in the sector
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Kenyans have a talent for making technologies and new ways of doing business work where other markets have failed. Bancassurance – or collaboration and integration between banks and insurance companies – has been tried in many African markets. In Kenya it is increasingly central to insurance and has already driven a few high-profile takeovers. Vijay Srivastava, CEO of GA Insurance, told OBG, “Bancassurance is key to the growth of the insurance sector,” adding that it is standard for all major…

Interview

Facilitating expansion: OBG talks to Sammy M Makove, Commissioner of Insurance and CEO, Insurance Regulatory Authority (IRA)
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Interview:Sammy M Makove What prompted the move to a risk-based supervision model from a compliance-based one? SAMMY M MAKOVE: Moving to a risk-based supervision model is really part of the natural evolution of the sector and brings the Kenyan insurance industry in line with its global peers. It is a more effective method of regulation and will lead to a more robust and dynamic industry. Of course there will be costs, as there are whenever a market undertakes a significant change. This will…

Analysis

Shifting gears: A new regulatory framework is bringing the sector further in line with international best practices
OBG
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Kenya is introducing a number of regulatory changes to its insurance sector, including a move towards risk-based capital, increased capital requirements, new guidelines for short-term business and takaful rules. Popular distrust has been a historical challenge for the sector, and insurance regulators in Kenya have been prioritising building confidence and cleaning up after several insurers closed in recent years, due to poor governance and insufficient oversight. Since then the emphasis has been…