Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Features

Marine insurance logs premiums worth Sh700Mn in first two months

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/FILE

NAIROBI, Kenya, Apr 24 – Marine cover business has registered huge gains already recording premiums worth Sh700 million in January and February following the government’s directive demanding importers to sign up with local underwriters.

This is according to the Acting Commissioner of Insurance Godfrey Kiptum who sees this as the game changer in the industry, with players fighting for business estimated at Sh20 billion.

“We have are already seen gains from Marine insurance and we are expecting this will increase the penetration of insurance in the year from the current 2.97 percent of Gross Domestic Product (GDP),” said Kiptum.

In 2016, marine insurance underwrote premiums worth Sh2.1 billion.

The law (Section 20 of the Insurance Act)- which was long ignored before it was recently activated by Treasury Cabinet Secretary Henry Rotich – is intended to reverse the scenario in which an estimated 90 percent of importers use policies offered by foreign firms.

Marine insurance is a policy that provides cover for goods while in transit either by sea, air, rail or road up to the warehouse. It is one of the oldest insurance covers in the world.

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.

Several Kenyan insurers have unveiled their marine insurance products in a bid to get a piece of this new business.

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.

Advertisement. Scroll to continue reading.

Kenya’s main imports are petroleum, manufacturing and agricultural inputs, electronics, pharmaceuticals, machinery, and textiles.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...