Insurance industry grows 13.4percent in 2017
The Insurance industry grew by 13.4 percent to hit Gross Premium of Ksh197billion in the year ended 31 December 2016. The annual industry statistics released by the Association of Kenya Insurers (AKI) places the overall insurance penetration is at 2.75 per cent.
Overall, Non-Life accounted for 63 percent while Life accounted for 37 percent of the gross premiums. “In more developed markets, we witness the reverse, where life insurance takes a bigger chunk of the market share” noted Mr. Patrick Tumbo, AKI Chairman during the launch of the report.
The gross written premiums for Life Insurance business grew by 19.5per cent in 2016 (Ksh73.92 billion) compared to a growth of 8.58per cent in 2015 (Ksh61.86 billion). The life insurance penetration increased to 1.03per cent compared to 0.99per cent in 2015.
The gross written premiums for Non-Life Insurance business were recorded at Ksh123.08billion in 2016 compared to Ksh111.93billion in 2015. Non-life insurance penetration dipped marginally from 1.80per cent in 2015, to 1.72per cent in 2016.
Medical insurance and Public Liability insurance had the highest premium growth rate of 30.4 percent and 21.6 percent respectively. Engineering and Marine had the least growth of -8.5 percent and -8.6 percent respectively.
According to AKI Executive Director, Mr. Tom Gichuhi, other classes to watch include Agriculture and Micro Insurance. Agriculture Insurance recorded 51.17per cent growth in gross written premiums from Ksh548Million in 2016 compared to Ksh362.5million in 2015. Livestock insurance provided a bigger portion of the pie at 69per cent , while Crop insurance took up 31per cent . Micro Insurance, classified as the 14th Class of General Insurance underwrote gross premium worth Ksh1.38billion in 2016.
The industry incurred net claims of Ksh86.62 billion in 2016 compared to Ksh81.18 billion in 2015, a 6.7percent increase.
The annual industry report, launched on August 24th 2017, covers industry performance in Kenya, East and Sub Saharan Africa and other global markets. The report also highlights global insurance industry trend including block chain, International Financial Reporting Standards 9 (IFRS 9) as well as artificial intelligence and robotics.