insurance over

Kenya plans to put in place a micro insurance law by the end of this year, officials said on Tuesday.

insurance overInsurance Regulatory Authority (IRA) Technical Manager Agnes Ndirangu told Xinhua in Nairobi that the proposed law is aimed at increasing the uptake of insurance policies in the country.

“The law will reduce capital requirements for establishing micro-insurance firms so as increase number of players in the industry,” Ndirangu said.

Under the proposed law, micro insurance firms will have a capital requirement of 500,000 U.S. dollars against current 1.5 million dollars.

According to IRA, Kenya insurance penetration rate stands at less than 3.5 percent of the Gross Domestic Product (GDP).

However, for the past three years the insurance premiums collected annually has been growing at an annual compounded rate of 20 percent.

Ndirangu said life insurance sector is not growing as fast as general insurance sector. “There are less than 500,000 lives insured against a target of one million,” she said.

A taskforce comprising of insurance stakeholders is expected to release recommendations in November on the actions required to increase uptake of insurance products.

The regulator has also amended that insurance law to allow for the direct licensing of insurance agents.
The agents will help to bring insurance services closer to the consumers including sparsely populated rural areas that are not considered economically by large insurance.

Speaking during the event Britam Group Managing Director Benson Wairegi said the insurance industry offers ideal products for saving for retirement.

“Once the National Social Security Fund act is implemented, it will increase the number of people saving for retirement,” Wairegi said. Enditem

Source: Xinhua


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