New Release
The Kenyan insurance industry (“the Industry”) plays a vital role in the financial landscape by managing risks and providing investment platforms, while also mitigating the impact of risk events on the economy. The insurance industry is dominated by the general insurance business, with 60.3% of operators licensed to underwrite non-life risks, while 39.7% are long-term insurers. However, the uptake of life insurance has increased over the last decade on the back of intensified campaigns and the introduction of more products, among others. The Industry’s Gross Premium Income (GPI) is projected to rise by 16% and 17.5% in 2024 and 2025 respectively, fueled by greater awareness and demand in health, property, and agriculture coverage. The investment portfolio of the Kenyan insurance industry primarily provides the liquidity needed to meet claims obligations promptly while also augmenting profitability and supporting business generation. Similarly, the Industry’s investment portfolio growth outpaced inflation in 2023 and we expect this trend to continue in the near term. As the Kenyan economy expands, the insurance industry is expected to witness substantial growth driven by increased economic activities leading to greater demand for various insurance products. Nevertheless, insurers will face pivotal decisions in terms of pricing strategies. Therefore, striking a delicate balance between absorbing rising operational costs and adjusting premiums to offset these expenses is essential.
The 2024 Kenya Insurance Industry Risk Report captures the following:
