The insurance industry is governed by the Insurance Act and regulated by the Insurance
Regulatory Authority.
In 2007, there were 43 insurance companies and 2 locally incorporated reinsurance
companies licensed to operate in Kenya. Of the licensed insurance companies,
20 were general insurers, 7 long term insurers and 15 were composite (both life
and general) insurers. In addition, there were 201 licensed brokers, 21 medical
insurance providers (MIPS), 2,665 insurance agents, 23 loss adjusters, 1 claims
settling agent, 8 risk managers, 213 loss assessors/investigators and 8 risk
managers in 2007.
Short term business continues to dominate the Kenyan market with its premiums
making approximately 70% of the of gross written premium (including deposit
administration contributions) in 2007.
The gross premium written in 2007 (including deposit administration contributions)
amounted to Shs 47 billion distributed as follows:
| Short term business |
Amount (Shs billions) |
% of total premium |
| Motor private |
5.5 |
17% |
| Motor Commercial |
8.8 |
27% |
| Personal accident |
6.3 |
19% |
| Fire industrial |
3.8 |
12% |
| Other classes |
8.5 |
26% |
| Total |
32.9 |
100% |
| Long term business |
Amount (Shs billions) |
% of total |
| Pensions |
5.5 |
38% |
| Ordinary Life |
6.1 |
41% |
| Group Life |
3.0 |
21% |
| Total |
14.6 |
100% |
The table below shows the assets and liabilities for the insurance industry
in Kenya as at 31 December 2007:
| |
Amount (Shs billions) |
| Total assets |
128 |
| Total Liabilities |
97.5 |
| Net assets |
27.4 |
*Source: AKI 2007 Report
Claims
Kenyan insurance companies generally report high loss ratios. Between 2004 and
2007, the loss ratios for the industry as a whole ranged between 56% and 60%.
Insurers have traditionally relied on investment income to act as a cushion
for their underwriting results.
