By Caroline Njenga
Local insurers should develop value added products and create awareness if they are to fully benefit from a government directive that the marine cargo cover is taken from Kenyan underwriters.
This is according to the Shippers Council of Eastern Africa who say importers are facing technical challenges in taking marine insurance covers locally.
Last June, National Treasury Cabinet Secretary Henry Rotich directed that all imports be insured locally from the beginning of this month.
However, importers say they are facing technical challenges in their pursuit to underwrite cargo.
The Shippers Council of Eastern Africa is calling in insurers to address the challenges, raise awareness among importers as well as reduce premiums.
Local insurers are being encouraged to develop innovative value added products and offer customer experience to fully benefit from the marine cargo directive.
Among the concerns raised by importers has been if local insurers have capacity to underwrite the marine cargo business, a perception that the industry says needs to change.
The value of imports is expected to increase from 1.7 trillion shillings in 2015 to 2.2 trillion shillings by the year 2020.
Industry players are in the process of setting up a portal that will link all insurers offering marine insurance online to a single window system.