Ahead of the new Marine Cargo Insurance (MCI) regulations seeking to place marine business exclusively with locally registered insurance underwriters, Sanlam Kenya, has moved to reiterate the availability of a value filled risk solution courtesy of its association with the leading Pan African financial services firm, the Sanlam Group.
The new regulations proposed by National Treasury Cabinet Secretary, Henry Rotich are scheduled to take effect early next year, helping unlock the largely untapped local MCI market with a projected KHz 30Billion value annually.
Through its general insurance subsidiary Sanlam General Insurance, the firm will continue providing value added risk covers for local and multinational clients importing or exporting products.
Riding on Sanlam’s digital innovation promise, the product will also be available via a digital platform providing ease of transacting and further enhancing Sanlam Kenya’s distribution capacity.
Speaking when he paid a courtesy call on Kenya Ports Authority (KPA) Managing Director Catherine Mturi-Wairi in Mombasa today, Sanlam Kenya Group CEO, Mugo Kibati said the local firm will be tapping on Sanlam Group’s century old technical experience and financial muscle to deliver a superior marine insurance cover for its clients.
The firm, Kibati said is well equipped and up to the technical task of carrying marine cargo insurance including fuel oil, bulk grains and motor vehicles among others.
Sanlam Kenya’s enhanced association with the Sanlam Group – Africa’s largest non bank financial services business – provides the firm with the added flexibility and technical capacity to provide an enhanced range of specialist risk solutions including marine and related import export cargo risk coverage.
“In conjunction with Santam Marine, the largest marine insurer in Africa, at Sanlam Kenya we are very well placed to insure a wide range of marine risks through Sanlam General Insurance, our general insurance subsidiary,” Kibati said, adding that, “Our expertise in this unique field provides us with a meticulous understanding of marine and contemporary port operating risks. From ship, cargo damage, container terminal and maritime construction risks, to natural catastrophes and piracy, all these risks are covered.”
The continued expansion of cargo holding facilities at the Kilindini harbour by KPA, Kibati noted, will continue to boost the growth of the local economy. Such efforts, he said will also continue to spur the need for specialist value added services such marine and related portside risk solutions.
“The transformational initiatives undertaken by KPA including the recent commissioning of the 550,000 Twenty-Foot Equivalent units (TEU) container terminals are laudable efforts. At Sanlam Kenya, we are proud to be associated with KPA’s ongoing efforts to facilitate national development,” Mugo said.
Backed by a more than six-decade wealth of experience, Kibati said that Sanlam Kenya supports ongoing efforts to facilitate the review of Section 20 of the Insurance Act seeking to expressly prohibit placement of “Kenyan Business” with non-Kenyan or foreign insurance markets except under certain circumstances.
The move, he acknowledged, will provide immense benefits to the local insurance industry that has been losing heavily as imports into Kenya continue to be on a Cost, Insurance and Freight (CIF) basis instead of Cost and Freight (CFR) basis which will allow local insurers to pick the insurance component. Such a development will be beneficial to Kenyan importers who under the current practice have limited recourse if anything happens to their imports before they arrive in the country.
Founded on a rich heritage and good corporate citizenship, Sanlam Kenya, a Nairobi Securities Exchange (NSE) listed firm, currently features a branch network of 34 client experience centres across Kenya’s major towns. The firm enjoys an estimated market share of 8% in the Kenyan life insurance industry, serving over 99,401 policyholders under individual life and more than 236,507 under group life.
Its recent rebranding to Sanlam aims to offer Kenyan shareholders, clients and other stakeholders the added comfort and security of doing business with a brand and company that has a strong track record of financial performance and world-class products and services.