Why kenya insurance industry sees data as the game changer. Insurance industry release report for q4 2018 1 chapter one 1. The first two chapters of the report feature the country profile by giving general information on kenya and by thoroughly studying its economic state, including key macroeconomic indicators and. Recent laws and reforms in east africa insurance industry 40. The origin of the insurance business in kenya date posted. Growth prospects for kenyas insurance industry kenya s insurance sector is ripe for investment and growth.
Registered insurance companies, brokersagents in kenya. There exists a conflict of interest between policyholders and shareholders, in that policyholders expect their claims to be paid from the insurance fund while investors shareholders expect to make profit from the same funds. Download logo the coronavirus pandemic has quickly evolved from a health care crisis to. In the last five years, the life insurance market in kenya has experienced growth in both the level of direct. The insurance industry in kenya, key trends and opportunities to 2018 market research report reportscue slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. The country offers one of the more attractive investment profiles in the region with a large population and increasingly diverse economy.
They are regulated by the insurance regulatory authority. Top 10 insurance corporations in kenya by premiums in 2015 posted on 20160822 tweet the kenyan insurance industry is one of the fastest growing markets on the entire african continent. As a result, insurance ordinance of 1960 was promulgated. Insurance regulation in kenya introduction insurance is a business of trust and can be abused. The plan has aligned insurance industry objectives with the national development objectives as set out in the kenya vision 2030 and the big four agenda.
Kenya outperforms peers in life insurance business. There are a total of 5,155 insurance agents in kenya. Proposed insurance industry taxes deepen woes for firms. Our outlook for kenyas insurance market is positive, with premiums expected to grow at solid singledigit rates in the short term and beyond, in line with wider economic growth and strengthening employment and income rates. Many people dont think insurance is beneficial to them. As a result of globalization, deregulation and terrorist attacks, the insurance industry has gone through a tremendous transformation over the past decade sanchez, 2006. Insurance penetration in subsaharan africa by country. The african insurance industry has also been in a state of continuous disruption since the 2008 global financial crisis, and growth has been sluggish.
Nxesi conducts walkabout at the unemployment insurance fund uif. Mr chris saigbe, director of life department of africa re. Kenya represents one of africas most welldeveloped and bestregulated insurance markets, with formidable historic growth and. Types, benefits and cost4 80% 1 vote what comes to your mind when you hear about life insurance in kenya. Mrs lucy ngugi, md first re brokers forum, seminars and trainings theme. Part vi of the insurance act cap 487 of the laws of kenya, except where. Having grown from a turnover of kshs 200m per year to over kshs 3 billion per year, kenindia assurance will be celebrating its 40 th anniversary. In 2016 kenya was ranked as one of africas most mature insurance markets, with growth forecast at 6% a year, according to ey. Cb insights 2017b, insurtech connect 2016 october reportsitc insurancetechdeck. This report is a comprehensive research of insurance industry in kenya. This has led to high poverty levels hence low purchasing power. Pdf does the price of life insurance influence the uptake of life. Kenya insurance industry news monitoring service from ein news.
Facts which the insurers representative fails to notice. Insurance industry annual report 2018 insurance regulatory. Insurance pdf types of insurance, scope of insurance,classification hello friends welcome to. The kenyan insurance industry s growth prospects by segment and category. Insurance is an important part of the financial sector. Markets in zambia, ghana and kenya will offer the most attractive mix of rewards and risk. Timetrics the insurance industry in kenya, key trends and opportunities to 2020 report provides indepth market analysis, information and insights into the kenyan insurance industry, including. The insurance business in kenya is profitable, but it is not necessarily easy.
The target population was insurance service providers in kenya licensed by the insurance regulatory authority ira. The insurance industry faces significant disruption, jeopardizing traditional business models. This article assessed the factors influencing demand for micro insurance services in the insurance industry in kenya. Some have led to serious losses while other have led to complete closure of upcoming and existing companies. Kenyas listed insurance companies analysis cytonn fy2015. Only 4 percent of millennials are interested in working for the insurance industry. Factors influencing demand for micro insurance services in. Global regulatory trends show that tougher regulation and increased pressure to perform can improve the sectors prospects and encourage investment. Insurance, only when these are joined with the combination of risk in a group is the insurance complete. In kenya for example, we have the insurance act, cap 487 laws of kenya, which is. Top 10 insurance corporations in kenya by premiums in 2015. The insurance regulatory authority is a statutory government agency established under the insurance act amendment 2006, cap 487 of the laws of kenya to regulate, supervise and develop the insurance industry.
The outlook is expected to inform policy, strategic planning and decision making towards spurring industry growth. The importance of insurance, its challenges and solutions. Pdf an overview of the insurance industry and its regulation. The insurance regulatory authority ira is the regulator of all insurance companies in kenya, with a mandate to regulate, supervise and develop the insurance industry in kenya. Kenyan insurance industry leaders breakfast interview. The insurance regulatory authority ira is the regulator of all insurance companies in kenya, with a mandate to regulate, supervise and develop the insurance industry in kenya the minimum paidup capital have been set at kshs. The first two chapters of the report feature the country profile by giving general information on kenya and by thoroughly studying its economic state, including key macroeconomic indicators and their development trends. Kenyan insurance sector in flux as firms consolidate and. Outlook on the insurance industry in kenya kenindia. Kenyas insurance industry leads within the east africa community a trading block of kenya, uganda and tanzania, and is a key player in the comesa region, common market for eastern and southern africa.
In research methodology, the study adopted cross sectional survey design. However, figures from the insurance regulatory authority shows that kenyas insurance industry continues to be nonlife business driven, which accounted for 66. Feasibility study for property microinsurance scbf swiss. The data set consists of annual operation costs of insurance industry and commissions. The insurance industry is critical for continuity of socioeconomic activities. Working together for a bigger and stronger industry. How insurance supports the economy, website, accessed 2018. Kenya has 50 insurance firms of which almost half are foreignowned. Pwc said the insurance industry has for long been impacted by fraud that is hard to investigate or punish leaving. Challenges facing insurance industry in kenya in 2019 tuko. The need for regulation in the insurance sector cannot be underestimated. Technology and innovation in the insurance sector oecd. The authoritys strategic focus as set out in its 20182022 strategic plan is in line with the third medium term plan mtp iii. Another change that the insurance industry must contend with is the changing consumer.
In kenya, the aki report shows that in a year when the economy experienced growth of 5. Why kenya insurance industry sees data as the game changer thursday, september 26, 2019 22. The kenyan insurance industrys growth prospects by segment and category. After many successful years of expanding their businesses in asia, global insurers. In burglary and fire insurance it is often the practice of insurance companies to. Insurance industry annual report for the year ended 31st december, 2017 vi strategic framework vision an effective regulator of a globally competitive insurance industry. The total gross premiums collected have risen from ksh 1 billions in 20 to ksh 173 billions with the life insurance being the faster growing segment. Like every other industry, there are challenges facing the insurance industry in kenya whose solving would definitely take the industry a leap higher. East africa insurance outlook report 20192020 deloitte. Kenyas insurance sector is ripe for investment and growth. Until the late 1970s, the insurance industry in kenya operated in a. Insurance pdf types of insurance, scope of insurance. Mission to effectively regulate, supervise, promote development of, and innovation in the insurance industry in order to protect insurance beneficiaries.
The industry has had to contend with the challenges of complying with developments, in. What is being sold is a promise which must be kept. Insurance industry release report for q1 2019 1 chapter one 1. Insurance industry report for the period october december. Insurance penetration in subsaharan africa in 2017, by country market size for the insurance industry in subsaharan africa 20142018, by country value.
An overview of the insurance industry and its regulation. Kenya s insurance industry leads within the east africa community a trading block of kenya, uganda and tanzania, and is a key player in the comesa region, common market for eastern and southern africa. After long periods of working with outdated software, manual. The application of ifrs 4 insurance contracts in 2005 was a significant challenge for the global insurance industry. Discover all statistics and data on insurance industry in africa now on. Its main function was to control the establishment, financing and working system of the insurance companies.
Another way to state this is to say that insurance is a transfer of risk with the added features of i combination of risks ii an estimate of future losses. Insurance industry annual report for the year ended 31st december, 2018. Guide to data analysis using spss for windows version 10. Kenyan insurance industry leaders breakfast lr mr kiiza bichetero, regional director of africa re in nairobi. This paper sought to determine the xefficiency of insurance companies in kenya and to establish whether the xefficiency of these insurance companies is affected by market share, cost of debt and firm size. James macharia, the chief operations officer who shared the companys journey over the years and his perspective of the insurance industry. Kenyas median age is 19 years, 50 per cent of the kenyan population is aged between 0 and 19 years, while. The industry employs over 10,000 people, underwrites well over 300m premiums, and pays over. We actively supported the sector as they prepared to adopt the standard for 2005 financial statements, and in december 2004 held a seminar for our insurance sector contacts on the implications of the standard.
In kenya there are a total of 49 insurance companies, 5 reinsurance companies and 198 insurance brokers. Insurance industry report for the period january march. Kenyan insurance sector in flux as firms consolidate and expand. Challenges facing insurance industry in kenya and their possible solutions. After independence in 1963, the government of kenya saw the need to have control over the insurance industry, which was. Africas insurance industry is largely underdeveloped, and insurance penetration levels are very low by global standards. An overview of the kenyan insurance industry the kenyan insurance industrys growth prospects by segment and category.
1252 1578 98 1023 971 1486 968 648 1272 1398 1305 1059 1531 1538 1109 743 1586 1042 37 401 23 1049 56 288 306 242 1007 22 225 784 562 873 1330