39 insurance companies and 2 reinsurance companies are currently licensed to operate in Kenya. The industry is governed by the Insurance Act and is regulated by the Commissioner of Insurance. Though ordinary life and superannuation business are gaining increasing significance, short term business tends to dominate the local market, with general insurance premiums making up 75% of the KShs 20 billion of gross premiums written in 2000.
General business premiums in 2000 were distributed as follows:
| Motor commercial |
 |
25% |
| Motor private |
|
19% |
| Other classes |
|
16% |
| Personal accident |
|
14% |
| Fire industrial |
|
14% |
| Theft |
|
6% |
| Marine and transit |
|
6% |
Kenyan insurance companies generally report high loss ratios, which in 1998 - 2000 ranged from 60% to 75% for the industry as a whole. Insurers have traditionally relied on investment income to act as a cushion for their underwriting results.
PricewaterhouseCoopers provides audit and tax services to several key players in the local insurance market. Our attest portfolio includes 12 of the 39 licensed insurance companies, as well as a reinsurer, key brokers and an actuarial services firm. We have also provided acquisition support to investors in a number of local and regional transactions, as well as advisory services in relation to internal restructuring programmes undertaken by companies in the sector.
Anne Eriksson, the partner who leads our insurance specialist group, is a member of the Insurance Advisory Board established under the Insurance Act to advise the Commissioner of Insurance and the Minister of Finance on matters concerning the sector.