News 

Sunday, December 01, 2013 

Regional insurers in lobby talk

NAIROBI, Kenya - Regional underwriters have sealed a deal to set up an umbrella body to lobby for fair and competitive business environment as they seek to boost insurance penetration rates. It marks the beginning of a push to develop a strong self-regulatory framework. The other intention is to kick-start harmonisation of the varying policies touching the insurance industry across the East African Community.Insurance groups from the EAC recently signed a memorandum of Understanding to form what will be known as the East African Insurance Association (EAIA).


The insurers are lobbying to get a platform on which to influence legislative and regulatory framework that impact on the insurance business.
Association of Kenya Insurers, chief executive, Tom Gichuhi (below) said the association will engage all governments in the region. “We now have an expanded market for insurers to  achieve economies of scale on freedom of movement. Basically, we seek to tap into cross border trade,” Gichuhi said.
Collectively, member countries constitute less than 10% in insurance penetration rates, with Kenya leading at 3.01 per cent followed by Rwanda at 2.3 per cent.
Tanzania, Uganda and Burundi penetration levels are still below at 0.8, 0.65 and 0.19 per cent respectively.

By Patrick Kisembo, Sunday, December 01st, 2013