The National Hospital and Insurance Fund is chipping off a huge chunk of the private insurance business.
This is according to the Association of Kenya Insurers Executive Director Tom Gichuhi who says insurers in the country are now looking for new ways to tap and retain their clients.
The 2017 Insurance report indicates that overall penetration still remains low, having marginally decreased to 2.71 percent.
The government has been working on various strategies to ensure that more Kenyans take up the National Hospital and Insurance Fund to promote affordable health care.
The Insurance sector recorded 6.45 percent growth with total gross written premium of Ksh 209.70 billion in 2017 compared to Ksh 197 billion in 2016.
Nonetheless, insurance penetration in the country still remains stagnant and recorded a marginal decrease to 2.71 percent, down from 2.75 percent, calling for diversification in product offering by players.
Life Insurance registered growth of over 40% in the period under review owing to aggressive marketing and more awareness among the public on the need to take up life cover, with the total premium income in the category hitting Ksh 83.65 billion.
Non-Life insurance took the lion’s share of the total premium income in 2017 at Ksh 126.05 billion.
Marine insurance recorded the highest growth at 41.56 percent mainly buoyed by the implementation of the government’s directive to locally insure all marine cargo starting 1st January 2017.
The uptake of Agriculture insurance is still low while fraud in general and medical insurance still remains a matter of concern.