News
Sunday, July 20, 2014
Kenya insurers perform better
NAIROBI, Kenya - Kenya has made significant strides in insurance uptake with a new global report showing an improved ranking.
According to the Association of Kenya Insurers (AKI) premiums written in Kenyan insurance industry registered a 20 per cent growth last year, as captured in the latest report by Zurich based reinsurance and financial services group Swiss Re.
“According to the Sigma Report, by Swiss Re, this growth is captured in both life and general insurance,” said AKI chief executive officer Tom Gichuhi said in Nairobi.
He said over the last decade, the local industry’s growth has been averaging between 12-14 per cent, making it one of the fastest growing sectors in the world on the back of increased uptake of insurance products.
Gichuhi said although AKI is yet to release its 2013 report, a sneak peak into the report shows Kenya beat both developing and emerging countries in insurance growth. “The emerging and developing countries got eight and 2.5 per cent growth, respectively during the year,” Gichuhi said. Currently, he said, Kenya is ranked fourth in Africa in growth behind South Africa, Mauritius and Namibia at 4.7 per cent.
Experts have in the past attributed the low penetration of insurance in the Kenya, relative to other more developed markets to a general lack of a savings culture among Kenyans and low disposable incomes for the majority of the population.
Other factors include inadequate tax incentives that could encourage the middle classes to purchase life insurance products and a perceived credibility crisis of the industry in the eyes of the public particularly with regard to settlement of claims.
By Ngugi Njoroge, Sunday, July 20th, 2014