Insurance

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.