Kenya's insurance sector is on track towards full recovery and is poised to record positive growth in the next five years, according to experts.
The sector has been subdued in the last two years due to economic shocks and the impact of the Covid-19 pandemic.
Sector players housed under the WAICA Reinsurance Kenya are now rooting for increased investment in technology and venturing into the agriculture sector to boost insurance earnings.
High claims have continued to hurt the insurance sector earnings, especially in the private motor and medical general insurance classes.
According to the latest claims report by the Insurance Regulatory Authority (IRA) for the three months period to December last year, insurance industry paid claims worth Sh40.6 billion, a three per cent increase from the previous quarter that paid claims worth Sh39.16 billion.
General liability claims paid went up by 16.8 per cent to 14,085 claims worth Sh4.21 billion from 12,055 claims paid worth Sh4.08 billion in the previous quarter.
Non-liability claims paid hit 1,714,723 claims worth Sh17 billion representing a 1.8 per cent increase from 1,684,698 claims worth Sh16.31 billion reported in Q3 2022.
However, WAICA notes that there is room for improving earnings through diversification and increased efforts in curbing fraud in the sector.
This as it targets the horn of Africa countries in regional expansion drive towards sector growth.
It has set sights on underwriting insurance business in Eritrea and Djibouti this year as it seeks to increase market share.
Speaking today during a client briefing, WAICA Re Kenya CEO Charles Etemesi, disclosed that the company has so far captured about 10 per cent market share, with the Kenya business accounting for 64 per cent of its operations.
“We are now underwriting business in Kenya, Uganda, Tanzania, South Sudan, Ethiopia, Burundi and Zambia, and we have deployed the state of the art technology and enhanced reinsurance capacity for all general classes pointing towards business growth,” Etemesi said.
Etemesi said hey are targeting property, engineering, marine, motor &, liability, miscellaneous, agriculture, medical and accident, energy and other specialty lines including financial lines, bonds, travel, trade and credit.
The Kenyan subsidiary recorded a net profit of Sh810 million in the year ended December 2022.
The company’s gross premium written grew by 120 per cent closing the year at Sh3.26 billion up from Sh1.48 billion the previous year.
Total asset base also went up by 68 per cent to Sh4.10 billion up from Sh2.44 billion in 2021.
Out of a total of 37 general insurance companies in Kenya, the subsidiary is currently on 18 companies’ treaty retrocession programs while in the region are doing business with 45 companies.
