NAIROBI, Kenya Jan 10 – The Insurance Regulatory Authority (IRA) has issued a license to Equity Group to venture into the insurance business.
The new venture dubbed Equity Life Assurance is a fully-fledged business with separate structures and commercial arrangements in line with the IRA regulations.
Speaking during the issuance of the license, the Commissioner of Insurance and Chief Executive Officer (CEO) IRA Godfrey Kiptum reiterated that the diversification strategy and entry of Equity Group into the insurance market is proof that the insurance industry in Kenya continues to be attractive to investors.
“We continue to receive interests from foreign-based financial institutions ranging from brokers, insurers, re-insurance brokers, and re-insurance companies looking for investments in the Kenyan Assurance market. This underscores the position of Kenya as a viable investment destination,” he said.
Kenya’s insurance industry has continued to enjoy steady growth over the years with the insurance market premiums currently being valued at approximately Shs235 billion.
The market, however, remains driven by the general business category with long-term insurance premiums standing at Shs 102 billion. This accounts for 43.4percent of the total premiums underwritten.
“We are witnessing a growth compared to last year and this is attributed to the Covid 19 recovery measures. Our market, however, is still general business-driven and I call upon Equity Life Assurance to identify strategies of increasing insurance growth in the long-term business,” he added.
Kiptum said that the government through the IRA is committed to providing an enabling environment to ensure that the insurance sector remains competitive. “Kenya is among the best-performing countries in Africa in insurance business largely due to innovative distribution channels, a liberalized market, and strong regulation,” he concluded.
