The insurance industry is critical for continuity of socio-economic activities. In the event of unexpected shocks such as fire, drought, loss of jobs and risks, insurers are expected to step in and mitigate losses and ensure financial stability for b...
The insurance industry is critical for continuity of socio-economic activities. In the event of unexpected shocks such as fire, drought, loss of jobs and risks, insurers are expected to step in and mitigate losses and ensure financial stability for businesses and homes.
Uptake of insurance policies and covers in relation to Kenya’s economic output has, however, been on a steady slide since 2013, touching a 15-year low of 2.43 percent of the gross domestic product (GDP) in 2018. A number of factors have been cited for the sluggish penetration of insurance products, including little innovation or creativity and failure to pay claims.
Heritage Insurance Company managing director Godfrey Kioi spoke to the Business Daily on these and other developments in the industry.
WHY IS THE INDUSTRY STRUGGLING TO GROW UPTAKE OF INSURANCE PRODUCTS VIS-À-VIS GROWTH IN ECONOMIC OUTPUT?
We have not shown the kind of growth that’s expected for such an important industry. Insurance is still at the bottom of priorities for most Kenyans. If things (cost of living) get tough, for instance, it’s the first thing that drops (off the budget), in favour of the things like loans.
Orginal Source: Business Daily
