This archive report was first published on 19 September 2019.
Published on September 19, 2019, Kenyan insurance firms are shifting their focus to short-term insurance products to cater to the needs of the young population.
The Association of Kenya Insurers (AKI) chief executive Tom Gichuhi stated that the market is increasingly tilting towards a population that wants insurance that is affordable, flexible, and covering as few as two months.
"If we keep on insisting that our products must be annual and we are not able to come up with short-term covers that are reasonably priced, we will one wake up as dinosaurs," said Mr. Gichuhi in Nairobi.
Insurance penetration has dipped to 2.43 percent, the lowest in 15 years, while combined profit for the 54 insurers has shrunk to Sh3.54 billion — the lowest in 12 years.
According to AIG Kenya managing director Catherine Igathe, the length of the covers has made it difficult for many young people to come on board, with the average age of the industry's customers being 40 years.
Ms. Igathe added that many youth want to insure gadgets such as phones and laptops, and are also asking for motor vehicle covers for specific periods, such as Friday evening to Sunday evening.
