Insurance
From The Report: Kenya 2018
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With its large population, diverse economy and an insurance penetration rate of less than 3% of GDP in the first quarter of 2018, compared to a global average of more than 6%, Kenya holds significant promise as an insurance arena. Recent years have seen the government and the industry regulator attempt to realise this potential by developing a micro-insurance framework, increased training for insurance agents and the promotion of technology in transacting insurance business. In the shorter term solid growth forecasts for the Kenyan economy bode well for the prospects of continued premium growth in the sector. This chapter contains an interview with Godfrey K Kiptum, Commissioner of Insurance; and CEO, Insurance Regulatory Authority.

Articles from this Chapter

Overview

Premium growth: Increasing offering set to double penetration rates
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With its large population, diverse economy and an insurance penetration rate of less than 3% of GDP in the first quarter of 2018, compared to a global average of more than 6%, Kenya holds significant promise as an insurance arena. Recent years have seen the government and the industry regulator attempt to realise this potential: key measures have included the localisation of marine insurance business, the development of a micro-insurance framework, increased training for insurance agents and the…

Analysis

Tech savvy: Mobile options and tech-driven solutions are increasing access
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As Kenya’s insurers respond to increasing competition by seeking new routes to premium, technology is playing a markedly important role in the market. In 2016 the Association of Kenya Insurers (AKI) remarked upon the rising popularity of so-called insurtech solutions, noting in its annual report that digitalisation is reducing customer friction points, and insurers are increasingly investing in digital platforms. The technological environment in Kenya is an encouraging one for proponents of insurtech…

Interview

Quantifying risk: Godfrey K Kiptum, Commissioner of Insurance; and CEO, Insurance Regulatory Authority (IRA), on regulatory changes being implemented to invigorate the sector
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Intewrview :Godfrey K Kiptum How can the private sector work to increase the contribution of insurance to Kenya’s GDP? GODFREY K KIPTUM: A prerequisite for insurance to achieve a more prominent place in the economy is for insurance companies to develop innovative products. Specifically, significant opportunities for innovation exist in distribution. Companies will eventually need to rely more on technology platforms and new applications, since the cost of reaching out to the customers –…

Overview

Reassuring trend: New reinsurance programmes are bolstering coverage against natural disasters in emerging markets – Kenya
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While advanced economies generate the vast majority of insurance and reinsurance business, emerging markets are posting higher rates of growth. Complementing this underlying trend is a strong and expanding interest in catastrophic risk, which by nature tends to pertain to emerging markets. This is coming alongside fast-paced, sector-transforming innovation, which could provide a major boost to industries in less-developed economies. “You have nothing but opportunity: big populations and tonnes of risks,” Tom Johansmeyer, assistant vice-president of property claim services at ISO Claims Analytics, a division of Verisk Insurance Solutions,…