Insurance companies are being urged to develop innovative products as well as review some of existing ones to help increase insurance uptake Kenya.
Insurance Regulatory Authority (IRA) Chief Executive Officer Godfrey Kiptum is also challenging banks to tap bancassurance that is largely untapped in Kenya to develop innovative and personalised insurance products.
Insurance penetration in Kenya is currently at 2.3pc, which is below the global average of 7.2pc. All insurance companies in Kenya are headquartered in Nairobi with most having no presence in all the 47 counties.
In addition, IRA says insurance products do not resonate with the public, fuelling the low insurance uptake.
To correct, Kiptum is challenging insurers to develop innovative products that resonate with the masses.
He is rooting for targeted products such as one for the affluent and ultra-wealthy clients to cover their financial, risk, wealth protection and legacy planning.
Kenya’s affluent market is growing with the number of dollar millionaires in the country increasing to about 7,200.
The bancassurance market in Kenya is valued at Ksh 23 billion.
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