Treasury drafting National Insurance Policy to enhance growth

The government is in the final process of developing the National Insurance Policy which is expected to guide the growth of the sector.

National Treasury Cabinet Secretary Ukur Yatani says the policy is expected to strengthen the Insurance Act in an attempt to upscale underwriting services.

Treasury floated the proposed National Insurance Policy last year and plans to publish the regulations later this year.

The National Insurance Policy will help support promotion of insurance as a risk management tool, access to insurance services that respond to local challenges and mobilize financial resources to finance development for financial inclusion and access.

National Treasury Cabinet Secretary told industry players that the policy will boost penetration of insurance products, which currently stands at about three per cent.

The industry is dominated by motor vehicle policyholders since it’s a legal requirement for any vehicle on Kenyan roads.

Apart from low penetration, the sector is battling cases of fake claims that have made some of the classes perpetual loss makers.

Yatani says treasury is working to have the National Insurance Policy before the end of this year.

This comes at a time when the industry is bearing the brunt of the COVID-19 pandemic that has seen policy numbers drop in the first quarter of this year.

According to the Insurance Regulatory Authority, insurance premiums fell by more than 800 million shillings during the first three months of this year as the pandemic shuttered economic activities.