Commissioner of Insurance Godfrey Kiptum (right). FILE PHOTO | NMG
Ten companies have applied for permits to start offering
micro-insurance policies signalling an appetite by insurers to
compensate individuals against loss of property at a daily cost of Sh40.
Insurance
Regulatory Authority (IRA) Insurance Regulatory Authority (IRA) acting
chief executive Godfrey Kiptum said the undisclosed firms were yet to be
cleared and were awaiting approval of the Microinsurance Regulations
2018 by the National Assembly.ting chief executive Godfrey Kiptum said
the undisclosed firms were yet to be cleared and were awaiting approval
of the Microinsurance Regulations 2018 by the National Assembly.
The
regulations provide for provision of policies to individuals or
property such as homes, livestock and crops at daily premiums not
exceeding Sh40 with the insured sum capped at Sh500,000. “We have a lot
of interest in micro-insurance. We have about 10 people who have applied
to do that business but we have not been able to do it because the
framework has not been in place,” Mr Kiptum said. “We expect that within
the not too distant future this year, that will be done.” Legislators
are required to approve rules and regulations formulated by the
regulatory bodies before they are implemented under the Statutory
Instruments Act, 2013. The rules are targeted at low-income earners.
They are expected to help boost insurance penetration which stood at a
lowly 2.71 percent of Kenya’s gross domestic product (GDP) in 2017, a
drop from 2.75 percent the year before. “The rules and regulations are
simplified and it will be quite easy to buy covers, lodge claims and get
settlement,” Mr Kiptum said.
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