- Several industry players who have excelled in various insurance categories were awarded by BIMA Intermediaries Association of Kenya.
- The awards acknowledge and honor insurance industry players who have demonstrated consistency and outstanding performance.
Insurance companies have been urged to restore public confidence in the sector by paying claims so as to boost the number of people buying insurance policies in Kenya.
Image: James Munyua
Image: James Munyua
Insurance companies have been urged to restore public confidence in the sector by paying claims so as to boost the numbers of people buying insurance policies in Kenya.
They have also been urged to tailor their product to fit in the budget of the common person to make sure at least each household has an insurance policy.
During the award gala held in Nakuru several industry players who have excelled in various insurance categories were awarded by BIMA Intermediaries Association, an umbrella body representing all insurance agents and intermediaries in Kenya.
The awards also acknowledge and honor insurance industry players who have demonstrated consistency and outstanding performance in particular categories.
Speaking during the awards BIMA Intermediaries Association (BIAK) Chairman Washington Ndegea said Kenya needs a strong Insurance industry.
Mr Ndegea also implored on insurance companies to agree to be judged by insurance agents based on different parameters.
“In this country we want a strong insurance industry, when you recognize or award insurance industry players who are doing well, we simply want to encourage other industry players to get involved. With proper regulation we will have better penetration of insurance,” Ndegea said.
“When we have companies in this sector that don’t pay claims, it will be nonsensical to insure but when it comes to claiming no one comes to look for you, this makes the members of the public lose confidence in this sector.”
He further noted that the collapse of several insurance companies in the last ten years has led to low confidence levels from potential clients.
The policy holder compensation fund which is supposed to pay the claimant when the company collapses did not function as intended.
On this,“The commissioner of insurance has introduced capitalization of insurance companies, this means a company will get the kind of business that it can be able to pay claim for. If you take a business worth a billion then the capitalization must be not less than a billion.”
This according to Ndegea will make sure those companies will be able to take care of their claims.
Madison Insurance took the overall Agent Company of the choice award as well as the best Counter Fraud Initiative and Risk Management solutions awards.
Evans Kirera the Nakuru branch manager attributed the win to a robust in-house security system that tracks down every claim to make sure that all the activities are aligned.
He further noted that the in-house team is responsive to the needs of the agents who in turns are able to take care of the needs of their clientele.
Other companies which were awarded are Sanlam, Monarch and Mourice Auto Motor Garage Limited.
According to Kenya National Bureau of statistics (KNBS) 2022 Economic survey, insurance uptake in Kenya remains low compared to other key economies at 2.3 percent as at 2021 financial years.
The low penetration rate is below the global average of 7.4 percent.
This is attributable to the fact that insurance uptake is still seen as a luxury and mostly taken when it is necessary or a regulatory requirement.
In a recent awareness survey by the Association of Kenya Insurer, the majority of Kenyans have a basic understanding of the concept of insurance.
Households not using any insurance products cite financial constraints as the biggest barrier followed by lack of knowledge on insurance products.
Insurance is also plagued with misconceptions such as, insurance is expensive and therefore a luxury purchase, low trust in insurers and taking up insurance seen as an invitation of bad luck.
According to the study Television and word of mouth are the most popular sources of insurance information for individuals, while insurance agents are the most influential information source for businesses.
However adoption of technology in the industry has been received well by customers who cite efficiency and convenience of services as the driving force.