This archive report was first published on 22 April 2020.
On April 22, 2020, the Insurance Regulatory Authority (IRA) took steps to ease the financial burden on policyholders affected by COVID-19, offering a three-month break in premium payments.
According to Godfrey Kiptum, the CEO of IRA, insurance companies will need to obtain approval from the regulator before introducing new product exclusions or changing product terms and conditions. Additionally, companies wishing to withdraw certain products will require permission from the Commissioner of Insurance.
As part of this relief, insurers are expected to provide policyholders with a three-month grace period, which may be in addition to any existing contractual premium holidays.
Initially, when the World Health Organisation declared COVID-19 a pandemic, the Association of Kenya Insurers stated that coronavirus victims would not be covered under insurance policies, citing exemptions for pandemics. However, following talks between IRA and health insurers, the latter agreed to cover the medical costs of coronavirus victims in the country.
