Insurance companies will be given new operating licenses that will not require them to renew yearly but under strict Government supervision.
The Insurance Regulatory Authority is sieving through applications from insurance companies for a continuous license as the regulator shifts from the annual licensing regime.
The Insurance Regulatory Authority is banking on implementation of the risk based supervision model as well as impromptu inspections on
For years, insurance companies have been required to apply for an annual operational license during which the Insurance Regulatory Authority would review their operations with errant underwriters denied the license.
An amendment to the Insurance Act has now done away with the annual licensing and replaced it with an infinite operating license that would be reviewed on a need on need basis effective from January 2018.
Implementation of the risk based supervision model as well as frequent impromptu checks by the regulator on insurance companies is expected to police the industry and ensure that underwriters comply with laid down regulations.
IRA technical manager Agnes Ndirangu encouraged insurance companies to increase the volume of business on farming activities to cushion farmers from risks as well as make agriculture lucrative.
Local insurance companies were also advised to venture into areas that have been previously been left to foreign underwriters such as the extraction industry and engineering as well as tailor products for the local market.