Insurance in Kenya - History, Regulator, Companies, Brokers, Challenges, Opportunities

This article delves into the landscape of insurance in Kenya, exploring its history, regulatory framework, insurance companies, brokers, along with the challenges and opportunities that shape its trajectory.

Contents:

Insurance Companies in Kenya

There are total of 63 insurance companies in Kenya licensed to operate insurance business in the country in 2023. This list includes insurance companies, micro-insurance companies and reinsurance companies. We have highlighted reinsurance companies by bold letters in the list below:

AAR Insurance Company Limited
ABSA Life Assurance Kenya Limited
Africa Merchant Assurance Company Limited
AIG Kenya Insurance Company Limited
APA Insurance Limited
APA Life Assurance Limited
Britam General Insurance Company (K) Limited
Britam Life Assurance Company (K) Limited
Cannon General Insurance Company Limited
Cannon Life Assurance (K) Limited
Capex Life Assurance Company Limited
CIC General Insurance Limited
CIC Life Assurance Limited
Continental Reinsurance Limited
Corporate Insurance Company Limited
Directline Assurance Company Limited
East Africa Reinsurance Company Limited
Equity Life Assurance (Kenya) Limited
Fidelity Shield Insurance Company Limited
First Assurance Company Limited – General
GA Insurance Limited
GA Life Assurance Limited
Geminia Insurance Company Limited
Geminia Life Insurance Company Limited
Ghana Reinsurance Company (Kenya) Limited
Healthier (K) Micro Insurance Limited
ICEA LION General Insurance Company Limited
ICEA LION Life Assurance Company Limited
Intra Africa Assurance Company Limited
Invesco Assurance Company Limited
Jubilee Allianz General Insurance Ltd.
Jubilee Health Insurance Limited
Jubilee Life Insurance Limited
Kenindia Assurance Company Limited
Kenya Orient Insurance Limited
Kenya Orient Life Assurance Limited
Kenya Reinsurance Corporation Limited
Kuscco Mutual Assurance Limited
Liberty Life Assurance Kenya Limited
Madison General Insurance Kenya Limited
Madison Life Assurance Kenya Limited
Mayfair Insurance Company Limited
MUA Insurance (Kenya) Limited
Occidental Insurance Company Limited
Old Mutual General Insurance Kenya Limited
Old Mutual Life Assurance Kenya Limited
Pacis Insurance Company Limited
Pioneer Assurance Company Limited
Pioneer General Insurance Limited
Prudential Life Assurance Kenya Limited
Sanlam General Insurance Company Limited
Sanlam Life Insurance Limited
Star Discover Insurance Limited
Star Discover Life Insurance Limited
Takaful Insurance of Africa Limited
Tausi Assurance Company Limited
The Heritage Insurance Company Limited
The Kenyan Alliance Insurance Company Limited
The Monarch Insurance Company Limited
Trident Insurance Company Limited
WAICA Reinsurance (Kenya) Limited
Xplico Insurance Company Limited

Insurance Brokers in Kenya

Below is the list of insurance brokers licensed to operate in Kenya for year 2023. This list doesn’t include reinsurance brokers.

AA Insurance Brokers Limited
Abc Insurance Brokers Limited
Aboo Insurance Brokers Limited
Acentria Insurance Brokers Limited
Acropolis Insurance Brokers Limited
Acuity Insurance Brokers Limited
Aero Smart Insurance Brokers Limited
Afrishield Insurance Brokers Limited
Al-Amin Insurance Brokers Limited
Allicom Insurance Brokers Limited
Allion Insurance Brokers Limited
Alpine Insurance Brokers Limited
Alternate Insurance Brokers Limited
Amana Insurance Brokers Limited
Amro Insurance Brokers Limited
Ams Insurance Brokers Limited
Apis Insurance Brokers Limited
A-Plan Insurance Brokers Limited
Arena Africa Insurance Brokers Limited
Aris Insurance Brokers Limited
Aristocrats Insurance Brokers Limited
Artha Insurance Brokers Limited
Aspen Insurance Brokers Limited
Assured Insurance Brokers Limited
Assurelink Insurance Brokers Limited
Atlas Insurance Brokers Limited
Aum Insurance Brokers Limited
Avila Insurance Brokers Limited
Avocet Insurance Brokers Limited
Bafana Insurance Brokers Limited
Bahari Insurance Brokers Limited
Bapa Insurance Brokers Limited
Batlex Insurance Brokers Limited
Bental Insurance Brokers Limited
Bilmax Insurance Brokers Limited
Bluewood Insurance Brokers Limited
Boma Insurance Brokers Limited
Bottomry Insurance Brokers Limited
Brighthouse Insurance Brokers Limited
Broadcover Insurance Brokers Limited
BTB Insurance Brokers Limited
Busam Insurance Brokers Limited
Canopy Insurance Brokers Limited
Centaur Insurance Brokers Limited
Chancery Wright Insurance Brokers Limited
Channel Insurance Brokers Limited
Chartwell Insurance Brokers Limited
Chester Insurance Brokers Limited
Clarion Insurance Brokers Limited
Clarkson Insurance Brokers Limited
Complete Solutions Insurance Brokers Limited
Consolidated Insurance Brokers Limited
Covermax Insurance Brokers Limited
Crescent Insurance Brokers Limited
Crownscope Insurance Brokers Limited
D & G Insurance Brokers Limited
Disney Insurance Brokers Limited
Dovenest Insurance Brokers Limited
Dynamique Insurance Brokers Limited
Eagle Africa Insurance Brokers Kenya Limited
Eden Rock Insurance Brokers Limited
Einsurance Brokers Limited
Emaar Insurance Brokers Limited
Ensign Insurance Brokers Limited
Entreplat Insurance Brokers Limited
Enwealth Insurance Brokers Limited
Etg Insurance Brokers Limited
Executive Insurance Brokers Limited
Fairsure Insurance Brokers Limited
Farelane Insurance Brokers Limited
FCB Takaful (Insurance) Brokers Limited
First Accord Insurance Brokers Limited
First American Insurance Brokers Limited
Font Insurance Brokers Limited
Formax Insurance Brokers Limited
Fortress Insurance Brokers Limited
Fortune Insurance Brokers Limited
Four M Insurance Brokers Limited
Four Stars Insurance Brokers Limited
Fredblack Insurance Brokers Limited
Gachichio Insurance Brokers Limited
Getrio Insurance Brokers Limited
Goldfield Insurance Brokers Limited
Grail Insurance Brokers Limited
Gras Savoye Kenya Insurance Brokers Limited
Grm Insurance Brokers Limited
H. G. Thanawalla Insurance Brokers Limited
H. S. Jutley Insurance Brokers Limited
Habari Insurance Brokers Limited
Harmony Insurance Brokers Limited
Hawk Bay Insurance Brokers Limited
Hillcroft Insurance Brokers Limited
Hillspan Insurance Brokers Limited
Hillstone Insurance Brokers Limited
Hp Insurance Brokers Limited
Ick Insurance Brokers Limited
Image Insurance Brokers Limited
Imoth Insurance Brokers Limited
Insco Insurance Brokers Limited
Integrated Insurance Brokers Limited
Inter-Oceans Insurance Brokers Limited
Ivari Africa Insurance Brokers Limited
J W Seagon Insurance Brokers (Kenya) Limited
Johncele Insurance Brokers Limited
Karen Direct Insurance Brokers Limited
Karen Insurance Brokers Limited
Kelon Insurance Brokers Limited
Kenbright Insurance Brokers Limited
Kenfident Insurance Brokers Limited
Ksembi Insurance Brokers Limited
Kwatro Insurance Brokers Limited
Lalit Sodha Insurance Brokers Limited
Landmark Insurance Brokers Limited
Laser Insurance Brokers Limited
Lema Insurance Brokers Limited
Liaison Group (Insurance Brokers) Limited
Lifecare International Insurance Brokers Limited
Losagi Insurance Brokers Limited
Lucent Insurance Brokers Limited
M. A. Khan Insurance Brokers Limited
Macangira Insurance Brokers Limited
Macly Insurance Brokers Limited
Maj Insurance Brokers Limited
Majani Insurance Brokers Limited
Malee East Africa Insurance Brokers Limited
Malfini Insurance Broker Limited
Mega Health Insurance Brokers Limited
Meister Insurance Brokers Limited
Methodist Insurance Brokers Limited
Mic Global Risks (Insurance Brokers) Limited
Microensure Insurance Brokers Limited
Midline Insurance Brokers Limited
Mik Insurance Brokers Limited
Millenium Insurance Brokers Limited
Mima Insurance Brokers Limited
Minerva Insurance Brokers Limited
Minet Kenya Insurance Brokers Limited
Miran Insurance Brokers Limited
Mns Risk And Insurance Brokers Limited
Modern Insurance Brokers Limited
Mombasa Insurance Brokers Limited
Nanyuki Insurance Brokers Limited
Nck Insurance Brokers Limited
Nelion Insurance Brokers Limited
Newchapter Insurance Brokers Limited
Niconat Insurance Brokers Limited
Nile Capital Insurance Brokers (E.A) Limited
Nirvana Africa Insurance Brokers Limited
Nomura Insurance Brokers Limited
Northlands Insurance Brokers Limited
Northridge Insurance Brokers Limited
Nyadwe Insurance Brokers Limited
Octagon Insurance Brokers Limited
Olea Kenya Insurance Brokers Limited
Onepay Insurance Brokers Limited
Options Insurance Brokers Limited
Pacific Insurance Brokers (Ea) Limited
Package Insurance Brokers Limited
Paladin Insurance Brokers Limited
Palsha Insurance Brokers Limited
Peace Of Mind Insurance Brokers Limited
Pelican Insurance Brokers (K) Limited
Pistis Insurance Brokers Limited
Plan & Place Insurance Brokers Limited
Platinum Insurance Brokers Limited
Policymart Insurance Brokers Limited
Porim Insurance Brokers Limited
Prime Mover Insurance Brokers Limited
Primeken Insurance Brokers Limited
Qijito Insurance Brokers Limited
Reica Insurance Brokers Limited
Reval Insurance Brokers Limited
Richlands Insurance Brokers Limited
Risk Care Insurance Brokers Limited
Risk Shield Insurance Brokers Limited
Risk Solutions Insurance Brokers Limited
Roberts Insurance Brokers Limited
Rolling Stones Insurance Brokers Ltd.
Royal Associates Insurance Brokers Limited
Safe N Sound Insurance Brokers Limited
Safenet Insurance Brokers Limited
Safir Global Insurance Brokers Limited
Salmastar Insurance Brokers Limited
Samnel Insurance Brokers Limited
Sapon Insurance Brokers Limited
Sasala Insurance Brokers Limited
SC Insurance Brokers (K) Limited
Scoreline Insurance Brokers Limited
Sedgwick Kenya Insurance Brokers Limited
Select And Protect Insurance Brokers Limited
Shashi Insurance Brokers Limited
Shiv Insurance Brokers Limited
Snowcaps Insurance Brokers Limited
Sobhag Insurance Brokers Limited
Soin Insurance Brokers Limited
Stansfeld Insurance Brokers Limited
Stegrap Insurance Brokers Limited
Sunland Insurance Brokers Limited
Surex Insurance Brokers Limited
Tebreisa Insurance Brokers Limited
Teevee Insurance Brokers Limited
The Great Five Insurance Brokers Limited
Timaha Insurance Brokers Limited
Transnep Insurance Brokers Limited
Trisons Insurance Brokers Limited
Trustmark Insurance Brokers Limited
Umma Insurance Brokers Limited
Unicorn Insurance Brokers Limited
Unipolar Insurance Brokers Limited
Universal Insurance Brokers Limited
Utmost Insurance Brokers Limited
Vb Insurance Brokers Limited
Vefis Insurance Brokers (K) Limited
Verge Insurance Brokers Limited
Victoria Insurance Brokers Limited
Vike Insurance Brokers Limited
Viva 365 Insurance Brokers Limited
Wakiba Insurance Brokers Limited
Waumini Insurance Brokers Limited
Zamara Risk & Insurance Brokers Limited

Reinsurance Brokers in Kenya

Below is the list of reinsurance brokers licensed to operate in Kenya for the year 2023:

Acentria International Reinsurance Brokers Company Limited
Aegis Re Brokers Limited
Afro-Asian Reinsurance Brokers (Kenya) Limited
Apex Reinsurance Brokers Limited
Clarkson Reinsurance Brokerage Limited
Eaglesbay International Reinsurance Brokers Limited
Ellgeo Seagon Reinsurance Brokers Limited
First Reinsurance Brokers Limited
Fredblack Insurance Brokers Limited
Global Bharat Reinsurance Brokers Ltd
Global Reinsurance Brokers Limited
Gras Savoye Kenya Insurance Brokers Limited
Kenbright Reinsurance Brokers Limited
Klapton Reinsurance Brokers Limited
Liaison Re Limited
Melech Reinsurance Brokers Limited
Mic Reinsurance Brokers Limited
Minet Kenya Insurance Brokers Limited
Mnk Re Kenya Limited
Modern Reinsurance Brokers Limited
Nairobi Reinsurance Brokers Limited
Nasco Btb Reinsurance Brokers Limited
Nile Capital Reinsurance Brokers Kenya Limited
Prestige Reinsurance Brokers Limited
Safir Global Reinsurance Brokers Limited
Unicorn Insurance Brokers Limited
Willmars Reinsurance Brokers (E.A.) Limited
Zamara Re-Insurance Brokers Limited

Medical Insurance Providers in Kenya

Apart from general insurance companies, following brokers and entities are also allowed to transact insurance business as Medical Insurance Provider for the year 2023 in Kenya

Acropolis Insurance Brokers Limited
Amana Insurance Brokers Limited
Ams Insurance Brokers Limited
Armchair Insurance Brokers Limited
Bahari Insurance Brokers Limited
BTB Insurance Brokers Limited
Chancery Wright Insurance Brokers Limited
Chester Insurance Brokers Limited
Clarkson Insurance Brokers Limited
Complete Solutions Insurance Brokers Limited
Consolidated Insurance Brokers Limited
Eagle Africa Insurance Brokers Kenya Limited
Executive Healthcare Solutions Limited
Goldfield Insurance Brokers Limited
Goldstar Healthcare Limited
Gras Savoye Kenya Insurance Brokers Limited
H. S. Jutley Insurance Brokers Limited
Healthline Solutions Limited
Henner Kenya Limited
Indemnity Insurance Brokers Limited
J.W. Seagon And Company Limited
Johncele Insurance Brokers Limited
Karen Direct Insurance Brokers Limited
Kenbright Healthcare Administrators Limited
Laser Insurance Brokers Limited
Liaison Healthcare Limited
Lifecare International Insurance Brokers Limited
Losagi Medical Insurance Brokers Limited
Mic Global Risks (Insurance Brokers) Limited
Minet Kenya Insurance Brokers Limited
Miran Insurance Brokers Limited
Mns Risk And Insurance Brokers Limited
Modern Insurance Brokers Limited
Mugen Medical Insurance Provider Limited
Mutual Trust Insurance Brokers Limited
Nile Capital Insurance Brokers (Ea) Limited
Pacific Insurance Brokers (Ea) Limited
Paladin Insurance Brokers Limited
Pelican Insurance Brokers (K) Limited
Plan & Place Insurance Brokers Limited
Radiant Health Insurance Brokers Limited
Royal Associates Insurance Brokers Limited
Scoreline Insurance Brokers Limited
Sedgwick Kenya Insurance Brokers Limited
Sobhag Insurance Brokers Limited
Trust Mark Insurance Brokers Limited
Waumini Insurance Brokers Limited
Zamara Risk & Insurance Brokers Limited

History of Insurance in Kenya

Colonial Impact on Insurance Business

The roots of insurance business in Kenya trace back to the colonial period during British rule. White settlers, primarily engaged in farming and agriculture, recognized the need to protect their investments against diverse risks. Consequently, they established insurance agencies to cater to the growing demand for insurance cover. Prudential, for instance, made a significant contribution by providing life insurance to Kenya in 1930 and establishing the East African Business center in Nairobi.

The earliest insurance companies, including Pioneer Assurance Society (1930), Jubilee Insurance Company (1937), Pan Africa Insurance (1946), and Provincial Insurance Company Limited (1949), were all owned by British insurers.

By the time of Kenya’s independence in 1963, these entities had evolved into full-fledged insurance companies, signifying the industry’s growth alongside the country’s development.

Pre-Independence Regulatory Landscape

Before independence, Kenya, like many developing countries, lacked specific insurance legislation. The Companies Act regulated insurance business during this period. However, in 1963, after gaining independence, Kenya recognized the need for dedicated legislation to control the growth of the insurance industry and contribute to the country’s economic development. The Insurance Ordinance of 1960 was enacted to regulate the establishment, financing, and operation of insurance companies.

Two policies formalized in 1994 and 1972 emphasized the importance of a robust national insurance and reinsurance market for economic growth. These policies aimed to reduce dependency on international insurers and re-insurers, leading to the enactment of the Insurance Act CAP 487 in 1986.

Post-Independence Growth and Regulation

Following independence, ownership of insurance companies shifted to the Kenyan government, which enacted the Insurance Act CAP 487 of 2010 to govern the insurance business. The top insurance companies in Kenya, according to a 2008 guide, include The British America Insurance Co (K) Ltd, UAP Provincial Insurance Co. Ltd, Pioneer Assurance Co. Ltd (an insurance broker), and C. I. C Cooperative Insurance Company of Kenya Ltd.

The regulatory framework for insurance in Kenya is currently structured around the Insurance Regulatory Authority (IRA) and the Association of Kenyan Insurers (AKI). The IRA, established in 2007, regulates, supervises, and develops the insurance industry. This marked a shift from the initial oversight provided by the Department of Insurance in the Ministry of Finance, highlighting a strategic response to enhance the efficiency and effectiveness of insurance regulation.

Key Segments of the Insurance Industry

General Insurance

General insurance, also known as non-life insurance, encompasses a broad spectrum of coverages that protect against risks such as accidents, property damage, liability, and more. In Kenya, general insurance is a vital component of the industry, serving individuals, businesses, and public entities.

Motor insurance, a mandatory requirement for vehicle owners, constitutes a significant portion of general insurance business. The coverage extends beyond basic third-party liability to comprehensive policies that offer protection against theft, accidents, and natural disasters. Additionally, property insurance, including home and business insurance, plays a crucial role in mitigating the financial impact of unforeseen events.

Life Insurance

Life insurance provides financial security to individuals and their families by offering protection against the uncertainties of life, including death, disability, and critical illness. The life insurance segment in Kenya has witnessed steady growth, driven by increased awareness of the need for long-term financial planning.

Term life insurance, whole life insurance, and endowment policies are among the products offered by life insurance companies in Kenya. These policies not only provide a safety net for beneficiaries but also serve as investment vehicles, offering policyholders a means of accumulating wealth over time.

Health Insurance

Health insurance has become increasingly important in Kenya as the cost of medical care rises. Health insurance policies cover medical expenses, hospitalization, and sometimes preventive care. Both individuals and employers recognize the value of health insurance in ensuring access to quality healthcare without bearing the full financial burden.

The Kenyan government has also taken steps to enhance health insurance coverage, with initiatives such as the National Hospital Insurance Fund (NHIF). The NHIF aims to make healthcare services more accessible to all Kenyan citizens, contributing to the overall improvement of public health.

Regulator

The regulatory framework governing the insurance sector in Kenya is overseen by the Insurance Regulatory Authority (IRA). Established in 1987 under the Insurance Act, the IRA is mandated to regulate, supervise, and develop the insurance industry. It ensures that insurance companies adhere to ethical standards, maintain financial stability, and protect the interests of policyholders. Besides, Association of Kenyan Insurers (AKI) too has some role in forming institutional and legal framework for insurance business.

One of the key functions of the IRA is to license and supervise insurance companies, intermediaries, and other players in the industry. The licensing process involves a thorough evaluation of an entity’s financial stability, governance structure, and capacity to meet its obligations. The IRA’s regulatory oversight extends to areas such as product development, pricing, and claims settlement to safeguard the interests of policyholders and maintain market integrity.

Challenges of Insurance Industry

While the insurance industry in Kenya has made significant strides, it faces several challenges that impact its growth and development. These challenges include:

Low Insurance Penetration: Despite efforts to increase awareness, a significant portion of the Kenyan population remains uninsured or underinsured. This low insurance penetration is attributed to factors such as low income levels, lack of awareness, and a perception that insurance is not a priority.
Fraudulent Activities: The insurance industry grapples with fraudulent activities, including false claims and misrepresentation. These activities not only lead to financial losses for insurance companies but also contribute to increased premiums for honest policyholders.
Regulatory Compliance: The regulatory landscape, while essential for maintaining market integrity, can pose challenges for smaller insurance players. Compliance with regulatory requirements may require significant financial investments, impacting the competitiveness of some companies.
Technological Adoption: The rapid pace of technological advancement presents both opportunities and challenges for the insurance industry. While technological innovations can enhance efficiency and customer experience, the industry must adapt quickly to stay ahead of emerging risks such as cyber threats.

Opportunities for Growth

Despite the challenges, the insurance industry in Kenya is poised for growth, driven by several opportunities:

Innovative Product Development: There is ample room for the development of innovative insurance products that cater to the specific needs of the Kenyan market. Tailored solutions, such as microinsurance products and parametric insurance, have the potential to reach underserved segments of the population.
Digital Transformation: Embracing digital technologies can revolutionize the way insurance products are distributed, underwritten, and serviced. Mobile platforms and digital payment systems offer convenient channels for reaching a wider audience, especially in regions with limited physical infrastructure.
Collaboration and Partnerships: Collaboration between insurance companies, regulatory bodies, and other stakeholders can foster the growth of the industry. Partnerships with technology firms, healthcare providers, and agricultural organizations can lead to innovative solutions that address the evolving needs of consumers.
Financial Inclusion Initiatives: Efforts to enhance financial inclusion, particularly in rural and low-income areas, can significantly expand the customer base for insurance products. Simplified insurance products, coupled with financial education, can encourage more individuals to embrace insurance as a risk management tool.

By overcoming the challenges and embracing these opportunities, insurance industry, with presence of significant number of institutions, can further foster.