This archive report was first published on 17 July 2019.
Kenya's Big Four agenda is set to drive growth in the engineering insurance sector, according to Kenindia Assurance. The company expects to see an increase in demand for engineering insurance as the country embarks on completing its construction and infrastructure projects.
Kenindia Assurance Deputy General Manager Ms. Irene Owiti attributed the expected growth to the Agenda 4 projects, which are being implemented alongside the adoption of new technology in infrastructure and manufacturing projects. This, she said, is likely to reduce the sluggish growth witnessed in the sector over the past year.
"As a company, we are continuously relooking at how we can remain relevant in the market and the engineering insurance fits in perfectly with the Agenda 4," said Ms. Owiti. "Traditional professions, such as engineers, architects, contractors, machine operators are generally aware of their exposures and appreciate the benefits of liability insurance. However, emerging industries are best served by having additional protection that is tailored specifically to their needs and adapted to the challenges they face," she added.
Kenindia's engineering insurance offers tailored policy forms for businesses in the engineering, construction, manufacturing, and industrial sectors. The company has expanded its engineering cover to cater for enterprises in construction, real estate, production, and processing, electrical power, gas, and water production and supply.
According to a KPMG Global Construction Survey, 47 percent of 165 leaders in the construction and engineering industry plan to move into new geographies, with Africa being the most popular region. This presents an opportunity for Kenyan insurance entities to offer engineering insurance, particularly with more investors in infrastructure projects.
Locally, the Big Four agenda provides the insurance industry with an opportunity to increase and diversify its engineering insurance offerings. As Ms. Owiti noted, "As a country, we are on an upward trajectory with the upgrading of old infrastructure, development of new industries, and urbanization of small towns. We believe that this will stimulate the construction industry and in essence the demand for insurance," she said.
Kenindia's engineering insurance covers a range of risks, including contractors all risks, contractors plant and machinery, erection all risks, machinery breakdown, boiler and pressure vessel, electronic equipment, deterioration of stock, and business interruption insurance. Regular inspections of facilities are encouraged to ensure that beneficiaries are adequately protected.
