Treasury seeks views on insurance sector

National Treasury Building. FILE PHOTO | NMG 

By GEOFFREY IRUNGU
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Summary

• The Treasury has commenced a process of developing a national insurance policy to ...strengthen related laws, regulations and policies in a bid to improve access to, and usage of, underwriting services.
• The framework will also increase penetration of insurance, which is currently at about three per cent and has hardly changed for more than a decade.
• Treasury Principal Secretary Julius Muia is asking stakeholders in the industry, including policyholders, to respond to a questionnaire that is basically asking about their priorities and challenges.

The Treasury has commenced a process of developing a national insurance policy to strengthen related laws, regulations and policies in a bid to improve access to, and usage of, underwriting services.

The framework will also increase penetration of insurance, which is currently at about three per cent and has hardly changed for more than a decade.

Treasury Principal Secretary Julius Muia is asking stakeholders in the industry, including policyholders, to respond to a questionnaire that is basically asking about their priorities and challenges.

“The government is developing a National Insurance Policy Framework expected to strengthen the policy, legal and regulatory environment in order to improve access, usage and affordability of insurance products and services in Kenya; and facilitate further development of insurance services in Kenya in line with broader public policy objectives of the government,” he said in a notice.

“Further, the development of the policy will support the following key objectives: i) Promotion of insurance as a risk management tool; ii) access to insurance services that respond to local challenges; iii) mobilisation of financial resources to finance development; iv) growth of the insurance sector (insurance Penetration); and v) broader financial inclusion and access.”

The industry has also complained that it faces problems of fake claims that has made some of the classes perpetual loss makers.

In some years, the industry as a whole has made a net loss in the underwriting business.

“Members of the public are requested to submit to us a memorandum and respond to a questionnaire on issues of interest to the entire Kenyan economy and the general public, for consideration in the Policy,” Mr Muia said.

Kenya’s insurance industry has been dominated by the public service vehicle underwriting and compulsory private car’s insurance.