In 2016 Kenya was ranked as one of Africa’s most mature insurance markets, with growth forecast at 6% a year, according to EY. While this is slower than some other large African markets, annual premium income was still expected to increase significantly, from $1.8bn in 2014 to $2.2bn by 2018, driven by urbanisation and a strong economy. Though the potential for growth is strong, the market has encountered some problems common to insurance sectors in the emerging world. The sector saw lacklustre performance in 2015 and 2016, which was the result of slow growth amid issues with fraudulent claims, particularly in the medical and motor segments. Insurers are also struggling to expand coverage among a large informal economy and income-sensitive population. However, with a wide array of innovative, local insurance market leaders, the Kenyan insurance landscape has the potential for a sizable expansion of domestic market penetration. The country also presents a solid base for reaching other African markets, which bodes well for drawing further interest from investors.
This chapter contains an interview with Benson Waregi, Group Managing Director, Britam Insurance.
A young population with rapidly rising purchasing power forms a solid base from which the Kenyan insurance market can grow. While penetration remains relatively low, it is in line with most countries in the region and creates a welcoming, innovative environment for industry players. In 2016 Kenya was ranked as one of Africa’s most mature insurance markets, with growth forecast at 6% a year, according to EY.
While this is slower than some other large African markets, annual premium income was…
With small- and large-scale farming alike helping to drive growth, agriculture is big business in Kenya. The country shows immense potential for companies offering agricultural coverage. The sector contributes around 30% to GDP, and six out of 10 Kenyans depend on farming, livestock and fisheries, according to the World Bank. “The main backbone of the economy is agriculture,” Joseph Kamiri, director of group strategy and marketing at CIC Insurance Group, told OBG. “People want to insure things…
Interview: Benson Wairegi
How would you rate the overall level of competition within the insurance sector?
BENSON WAIREGI: The level of competition is quite high when compared not only to the East African region, but to sub-Saharan Africa as a whole. In Kenya, we have more than 45 life and non-life insurance companies. You can also gauge the level of competition by looking at the number of new players, particularly international players, that have recently entered the Kenyan market. This is largely…