- The governor urged the authority to open its branches in all the 47 counties to move services closer to the people
- More than 33 stakeholders from the insurance and public sectors showcased their services
Image: MAURICVE ALAL
Kisumu Governor Anyango Nyong'o has urged Insurance Regulatory Authority to rein on rogue insurance companies, brokers and agents.
He said conmen people have invaded the sector and are robbing innocent people, with limited knowledge about insurance, their money and benefits.
“A number of Kenyans have lost their hard-earned cash to fake insurance brokers, unprofessional lawyers and corrupt ambulance chasers just because they lack the prerequisite knowledge on insurance policies,”Nyong'o said.
In a speech read on his behalf by Deputy Governor Mathews Owili during the insurance open day organised by IRA at Jaramogi Oginga Odinga sports grounds, Nyong'o urged the authority to swing into action.
He said millions of Kenyans who have invested huge financial resources and lives in insurance should be protected.
“Insurance is a big business with serious economic impact on the people, both low, middle and the upper class. It is a sector with a very high turn-over,” Nyong'o said.
The governor urged the authority to open its branches in all the 47 counties to move services closer to the people.
More than 33 stakeholders from the insurance and public sectors showcased their services.
The government records indicate a moderate growth trajectory for the insurance industry, with general insurance dominating the market at 60 per cent.
Despite recent hard economic times ignited by the ravages of Covid-19, high inflation and rampaging taxation, market dynamics show there is an increment in insurance penetration in Kenya.
Nyong'o said the aggressive marketing by insurance companies through modern technologies and changing lifestyles have helped to drive up insurance uptake.
“Yet despite the growing demand, Kenya still has the third lowest insurance penetration rate in Sub-Saharan Africa with only three per cent of the market value. South Africa leads with 17 per cent,” he said.
The rising numbers of insurance companies and other government agencies signals a positive shift in customer centricity in the business.
"The authority must tell those who have limited knowledge on insurance the difference between Life Insurance, Non-Life Insurance and Re-insurance," Nyong'o said.
Nyong'o urged residents to embrace the last expense insurance cover to cushion them from burial expenses.
“There are many WhatsApp groups for funeral collections. A good number of people are however keen to end the WhatsApp funeral collections and are now joining the last expense cover,” he said.
The authority’s corporate communications manager Evans Kibagendi said IRA is optimistic of growth in Western.
Kibagendi said the sector has the potential to grow into the next millennium.
Kisumu is rated highly in terms of insurance uptake.
IRA has launched a major public awareness campaign to increase insurance uptake.
Kibagendi said low insurance uptake is due to poor publicity and lack of awareness among Kenyans.
“As the authority, we have embarked on a mission to sensitise members of the public in all counties on the importance of having an insurance policy,” he said.
The sensitisation targets journalists, teachers and other stakeholders in various sectors on the importance of having insurance, to safeguard their wealth, education and life.
Kibagendi said IRA is aware of insurance complaints and claims from policyholders and assured the public that it was mandated to protect consumer rights and provide consumer education and investor information.