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. The application of ifrs 4 insurance contracts in 2005 was a significant challenge for the global insurance industry. 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. Membership is free and we do not sell or lease any. Assessment of challenges facing insurance companies in building competitive advantage in kenya. Insurance is an important part of the financial sector. 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.
Kenyan insurance sector in flux as firms consolidate and expand. Insurance penetration in subsaharan africa in 2017, by country market size for the insurance industry in subsaharan africa 20142018, by country value. The insurance industry in tanzania, key trends and. Jan 18, 2015 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. Aug 23, 2019 low insurance uptake in africa can be attributed to the low income levels. In the forty years since independence, kenyas insurance industry has flourished, and by 2002 had 41 registered insurers, 15 transacting general insurance business, 2 transacting life business, while 24 were composite insurers transacting both life and general insurances. Kenyas listed insurance companies analysis cytonn fy2015.
Amounts and values in policies to be expressed in kenya currency. In the last five years, the life insurance market in kenya has experienced growth in both the level of direct premiums as well as in the. We focus on the cytonn fy2016 insurance report, analyzing the current state and future outlook of the industry based on the year 2016 results. The storm forced the insurance industry to recognize that it might be subject to losses in the future way beyond any figures previously imagined. Kenya represents one of africas most welldeveloped and bestregulated insurance markets, with formidable historic growth and even better nearterm prospects, but it is fragmented and competition is tough. Motivational strategies and sales force performance in the insurance industry in kenya by jael achieng onyango a research report submitted to the chandaria school of.
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. Insurance sector outlook for east africa 2015 deloitte. How insurance supports the economy, website, accessed 2018. Low insurance uptake in africa can be attributed to the low income levels. Oct 23, 2019 insurance penetration in subsaharan africa in 2017, by country market size for the insurance industry in subsaharan africa 20142018, by country value of gross written life insurance premiums. 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 compared to the general business line. Growth prospects for kenyas insurance industry kenya s insurance sector is ripe for investment and growth. Technology and innovation in the insurance sector oecd.
After long periods of working with outdated software, manual. Key statistics from the kenya insurance industry for the year 2016 touching on premiums growth and profitability by insurance class. The honourable cabinet secretary, national treasury dear sir, re. Insurance industry annual report 2017 insurance regulatory. Insurance industry report for the period january june 2017. In 2015, south africa dominated the nonlife insurance industry in africa, while morocco was responsible for 23 percent. Africas insurance industry is largely underdeveloped, and insurance penetration levels are very low by global standards. The kenyan insurance industrys growth prospects by segment and category. What is being sold is a promise which must be kept. Based on the publically available information on these deals, we have outlined the following themes.
This publication, which is in compliance with section 2 of the capital markets authority act cap 485a, is meant. After independence in 1963, the government of kenya saw the need to have control over the insurance industry, which was. In kenya there are a total of 49 insurance companies, 5 reinsurance companies and 198 insurance brokers. Laws of kenya insurance act chapter 487 revised edition 2012 2010. Annual insurance industry report for the year ended 31st december 2016 the national treasury p. Insurance industry annual report 2018 insurance regulatory. Growth prospects for kenyas insurance industry kenyas insurance sector is ripe for investment and growth. Challenges facing the insurance industry in managing. 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. As far as provision for employment goes, we could confidently say its among the biggest employment providers. The authoritys strategic focus as set out in its 20182022 strategic plan is in line with the third medium term plan mtp iii. It is expected that the demand for both life and nonlife insurance products will continue to rise as more households join the middle income class and as the market for project risk coverages soars driven by the ongoing investment in infrastructural projects across the region.
Health insurance kenya compare medical insurance quotes. In 2015, south africa dominated the nonlife insurance industry in africa, while. The netherlands has a good reputation in kenya and is the only country in europe with which kenya has. Many people dont think insurance is beneficial to them. This is by introducing micro insurance and takaful, as well as use of alternative distribution. This research paper seeks to evaluate the kenyan insurance industry which is based on the fault law, its shortcomings and the applicability of the no fault system to cure the ills of the fault insurance regime in this country.
Insurance regulation in kenya introduction insurance is a business of trust and can be abused. Global regulatory trends show that tougher regulation and increased pressure to perform can improve the sectors prospects and encourage investment. Challenges facing insurance industry in kenya in 2019 tuko. Kenya insurance industry news monitoring service from ein news. In 2016 kenya was ranked as one of africas most mature insurance markets, with growth forecast at 6% a year, according to ey.
As a member, you may also submit your own news using the ein presswire distribution service. 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. This report is a comprehensive research of insurance industry in kenya. Abstract during the last few years, the insurance industry has undergone a series of changes through.
The determinants of financial performance in general. We ranked the listed insurance firms based on their. Market study report 4 top 10 reasons why kenya is interesting for the dutch health sector 1. Insurance penetration in subsaharan africa by country. When you buy a commercial medical insurance policy from a local healthcare provider such as jubilee insurance, britam, resolution insurance or any other medical insurance companies in kenya, your insurance is calculated net of the nhif contribution to your hospitalization. Life insurance kenya life insurance industry performance kenya in the last five years, the life insurance market in kenya has experienced growth in both the level of direct premiums as well as in the equity held by the industry constituents. 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. Defaults of insurer, broker or agent not to invalidate policy. Despite the fact that insurance has been practiced for over a thousand years world over, it is still a fact that insurance uptake is still very low, not only in kenya but the world over. Kenyan insurance sector in flux as firms consolidate and. The insurance business in kenya is profitable, but it is not necessarily easy. International journal of social sciences and entrepreneurship, 1 11, 467490. The handbook is designed to be used in conjunction with the institutes other. Nov 04, 2012 the insurance industry is facing in kenya.
Kenya represents one of africas most welldeveloped and bestregulated insurance markets, with formidable historic growth and. Until the late 1970s, the insurance industry in kenya operated in a. The role of governments in the insurance industry royal institute for international affairs london, u. 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. This has led to high poverty levels hence low purchasing power. The kenya tourism board authority announced plans to market kenyas tourism products through the ongoing indian premier league. Any alterations in particulars stated herein or in the said documents will be promptly communicated to the commissioner of insurance. United republic of tanzania tanzania insurance regulatory. Global analysis of health insurance in subsaharan africa.
As the industry rides the wave of growth in this secondfastest growing region in the world,1 the. There has been a record of positive returns on shareholders equity in this time frame. The industry in kenya has had a culture of recruiting agents from dropouts in primary schools and high schools and using these to drive insurance sales in the country. Insurance penetration in subsaharan africa by country 2017. The kenyan insurance industry is one of the fastest growing markets on the entire african continent. With the rapid expansion of east africas economy, the insurance industry is on a solid footing entering 2015. Between 1 august 2016 and 1 august 2017, we have identified approximately. The african insurance industry has also been in a state of continuous disruption since the 2008 global financial crisis, and growth has been sluggish. The importance of insurance, its challenges and solutions. Kenya is the healthcare frontrunner in east africa. The insurance industry in tanzania, key trends and opportunities to 2019 synopsis timetrics the insurance industry in tanzania, key trends and opportunities to 2019 report provides detailed analysis of the tanzanian 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. This report includes data for all the insurers and. The study recommended that insurance players should evaluate their strategies constantly with a view to.
The insurance industry has no excuse for not securing significant funds from those who are keen on saving. Recent laws and reforms in east africa insurance industry 40. This is an industry that is very wide in kenya, with a regulatory body that requires all the registered bodies to work under it. Law applicable to contracts of insurance and place of payment. Insurance industry report for the period october december. Insurance cover upon change of ownership of motor vehicle. East africa insurance outlook report 20192020 deloitte. Breaking the barriers to insurance penetration in kenya. Factors influencing agents retention in insurance industry. The tax is computed as a percentage of the gross direct premiums written by an insurer at a rate of.
The industry employs over 10,000 people, underwrites well over 300m premiums, and pays over. General insurance such as principles of utmost good faiths material fact principle of insurable insures and principle of indemnity. Issues briefs provide overviews of the trends and developments shaping the insurance industry from natural catastrophes to terrorism to workplace safety. The contribution of general insurance industry in kenya to her gross domestic product is at 2. Kenyas insurance industry leads within the east africa community. Top 10 insurance companies in kenya answers africa. Top 10 insurance corporations in kenya by premiums in 2015. Even kenya, the most mature insurance market included in the survey, is. Pdf life insurance plays an important role in individuals and families financing by providing a hedge against loss of income following the.
Insurance industry release report for q4 2018 1 chapter one 1. The kenyan insurance industry s growth prospects by segment and category. After independence in 1963, the government of kenya saw the need to have control over the insurance industry, which was then dominated by branch offices of. General insurance comprises of insurance of property against fire, burglary etc, personal insurance such as accident and health insurance, and. Pdf linking strategies for gaining competitive advantage. Members of the insurance industry excluding insurers whose.
We compare insurance companies to find you the most suitable insurance policy at competitive price. The insurance industry in kenya, key trends and opportunities to 2018 market research report reportscue. Why insurance sector in kenya has stagnated business daily. They are regulated by the insurance regulatory authority. Insurance industry annual report for the year ended 31st december, 2018. Insurance sector outlook for east africa 2015 deloitte east. About this release this is the 2017 second quarter industry release which provides market information and statistical overview of the insurance industry in kenya for the period january to june 2017. Insurance industry annual report2016 on behalf of the board of the insurance regulatory authority, i have the honor.
In 20 kenya reformed the healthcare system and sector with the socalled devolution, meaning that the 47 counties gained a relatively high degree of autonomy. Authority, the central bank of kenya, insurance companies and other stakeholders. There are increasing regulatory capital requirements on the horizon, and there is growing scope for. 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. Pdf does the price of life insurance influence the uptake of life. The insurance industry in kenya, key trends and opportunities. This is quite low inspite of the rising awareness of the importance of insurance and the efforts by insurance companies to expand their presence. The insurance industry faced difficult economic environment in 2011. There are a total of 5,155 insurance agents in kenya. Part vi of the insurance act cap 487 of the laws of kenya, except where. 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. The views expressed in this publication are those of the writers where particulars are not warranted. This report provides a comprehensive analysis of the insurance industry in kenya.