This archive report was first published on 21 October 2019.
On October 21, 2019, the National Treasury announced the commencement of a process to develop a national insurance policy framework to strengthen related laws and regulations.
The framework aims to improve access to and usage of insurance services in Kenya, which currently have a penetration rate of about three percent.
According to Treasury Principal Secretary Julius Muia, the policy will support key objectives such as promoting insurance as a risk management tool, increasing access to insurance services that respond to local challenges, and mobilizing financial resources to finance development.
“The government is developing a National Insurance Policy Framework expected to strengthen the policy, legal and regulatory environment in order to improve access, usage and affordability of insurance products and services in Kenya; and facilitate further development of insurance services in Kenya in line with broader public policy objectives of the government,” he said in a notice.
Mr. Muia also requested stakeholders in the industry, including policyholders, to respond to a questionnaire that is basically asking about their priorities and challenges.
The industry has faced problems of fake claims, which has made some of the classes perpetual loss makers, and in some years, the industry as a whole has made a net loss in the underwriting business.
