Over 88% of Kenyans have no insurance cover, survey shows

Over 88% of Kenyans have no insurance cover, survey shows
  • Only 12% of Kenyan population are subscribed to insurance cover
  • Most of Kenyans believe that insurance cover is for the rich, a move that has remained to be a major impediment to the growth of insurance sector in Kenya
  • A majority of citizens who are on insurance do not mainly benefit from the scheme

At least 88% of Kenya’s population are not subscribed to any insurance cover, the latest study by online health service provider, Daktari Africa shows.

According to the research, only 12% of Kenyans, which represents about 480,000, have an insurance cover with 10% of the insured population being subscribed to public insurance covers while the remaining 2% have their own private cover.

“Only 12% of Kenyans out of a population of over 40 million are subscribed to the insurance covers leaving a whopping 88% of the total country uncovered,” stated the survey.

The survey further reveals that the state-controlled National Hospital Insurance Fund (NSSF) is the leading cover subscribed to by Kenyans.

Daktari Africa Chief Executive, Charles Kamotho explains that slow penetration of insurance covers in Kenya is due to poor information on the benefits of the program as a majority of Kenyans think insurance is only for privileged societal classes.

Another key impediment to the growth and penetration of the sector is the fact that a majority of Kenyans with insurance covers are anxious about being denied access to claims.

This discourages other Kenyans from purchasing covers as they do not believe in benefiting from the schemes.

Read Also: Here is what the new Marine Cargo insurance Act means to importers

As such, KPMG East Africa has announced plans aiming to transform the sector and boost awareness among consumers.

“It is time for the sector to invent and come up with prices that are more affordable to the mass markets and the mainstream markets,” KPMG Head of Insurance, James Norman said in a recent statement, adding that many people still think of insurance as a luxury product.

Recent amendments to regulatory requirements in accounting for liabilities are projected to support local insurers especially those offering life policies.

According to analysts, the latest accounting practices have lifted earnings for insurers who barely make money on their policies and who have relied heavily on investment income to bolster profits.

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