[Kenya] Insurance penetration stands at 12 per cent, survey
A paltry 12 per cent of Kenyans have any form of insurance programme according to a survey by online service provider Daktari Africa.
The dismal numbers now mean that an approximated 48,000 Kenyans have insurance in a country with more than 40 million people.
According to Charles Kimotho, the Daktari Africa chief executive 10 per cent of the covered population is subscribed to public insurance covers, with the remaining two per cent having their own private covers.
“Most Kenyans do not see the point of taking up insurance covers because of lack of information of benefits that come up with insurance,” said Kamotho.
Among leading covers undertaken by Kenyans is the state fund-National Hospital Insurance Fund.
Kamotho was speaking during the second KPMG East Africa Insurance Conference at the Serena Beach Hotel in Mombasa.The conference brought together insurance players and innovative business start-ups to formulate solutions that would counter the problems facing the insurance industry.
KPMG East Africa is seeking to change the Kenyan perception that insurance covers are only for the rich people in the society. “It is time for the sector to innovate and come up with prices that are more affordable to the mass markets and the main stream markets, ”KPMG head of Insurance James Norman said.“Many people still think of insurance as a luxury product.”
The insurance players hope to penetrate the East Africa on a scale comparable to South Africa, whose insurance policies are considered world class.Currently, most Kenyans who are enrolled to insurance covers are particularly anxious about being denied access to claims.
According to industry players, majority tend to think insurance is an expensive venture, while others just simply do not believe in benefitting from the products.The Association of Insurance Brokers of Kenya chairman Nelson Omolo said insurance companies need to win clients’ trust.
“It is upon us as insurance players to endear ourselves to our consumers and gain their trust,” he said.Andrew Jackson, the KPMG head of advisory and markets said that to quell down misconceptions surrounding the sector,better education and sensitisation of the industry was necessary.