NAIROBI, Kenya, Jan 19 – AAR Insurance has unveiled an online marine cargo insurance product seeking to tap into the lucrative segment after a government directive requiring all imports acquired local covers comes into effect.
AAR Managing Director Caroline Munene says the marine cover is restricted to fire, explosion, overturning, collision, sinking and loss of vessel among others, and can be accessed online.
“We are targeting importers, exporters, clearing agents and shippers as we aim at diversifying our revenue base. We are offering Institute of Cargo Clauses (ICC) A and B&C as well as an open policy. Following the directive by the government, we expect to see significant growth in this line of business,” said Ms. Munene.
Marine cargo insurance protects goods from the risk of loss, damage, pilferage and theft during transit by sea, land and air from the port of origin to the final destination.
“We want to give our client the ease and convenience of insuring their goods from wherever they are. Global trade is real time and round the clock hence the need for such a portal,” explained Ms. Munene.
In his Budget speech last year Treasury Cabinet Secretary Henry Rotich activated section 20 of the Insurance Act which requires importers to insure inbound cargo with local underwriters.
Several Kenyan insurers have unveiled their marine insurance products in a bid to get a piece of this new business currently estimated to have gross premiums value of Sh20 billion.
The Association of Kenya Insurers (AKI) in December also directed that all marine insurance business must be transacted online.
Gradually all insurers offering marine insurance online will be linked to a single window operated by KenTrade
Kenya’s main imports are petroleum, manufacturing and agricultural inputs, electronics, pharmaceuticals, machinery and textiles.