MAULID BILLIE ALI - BILLIE MEDIA: PROBLEMS FACED BY INSURANCE BROKERS IN KENYA

PROBLEMS FACED BY INSURANCE BROKERS IN KENYA

Insurance brokers have warned of a looming extinction of their business as underwriters increasingly opt for direct contact with policy buyers. The Association of Insurance Brokers of Kenya said direct procurement, especially by public entities, has emerged as one of the trends that threaten their survival. Mr Omolo talks to Financial Standard about the challenges facing the sector and how they overcame them.

What is the current insurance uptake in Kenya compared to her peers?
It’s not good and not bad. The current average insurance penetration level in Kenya is at three per cent of the GDP compared to South Africa at 12 per cent. In the East Africa region, we are followed by Tanzania and Uganda at less than one per cent.
There is a drive to sell insurance to millennial from this year, why now?

Research carried out both by Insurance Regulatory Authority (IRA) and other global bodies has proved that the millennials will be the greatest consumers and that’s why we are targeting them. Historically, many of the insurance products sold then targeted the old. Millennials are also able to spend without a blink and are able to appreciate the products much more. The micro- insurance is some of our target areas, where we use mobile phones to reach them.

What has caused low uptake of insurance services in Kenya?

If you look at the traditional products we have been selling in the past, they have been targeting the rich but now you find that their focus is now shifting because they are not many and it’s now better to focus to the middle class who are increasing day by day and the reach will be wider.

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